Conversation Threads: Understanding Distribution and Wholesale
This thread was created by Heidi Weiland, sales director at Cottage Door Press. Comment anywhere on this thread and the author of the document will post a reply. You can also email Heidi at hweiland@cottagedoorpress.com.
Bookstores have the following options for purchasing books for their stores:
Directly from the publisher
Through a wholesaler
Through a distributor
Purchasing from the publisher is straightforward. An order is placed with a sales representative and the order is fulfilled and shipped by the publisher for the books they publish.
A wholesaler is an organization that buys goods in bulk quantities and sells it in smaller ones.
Distributors are the reseller of products, which cover a specific area or market.
Purchasing from a wholesaler allows a bookstore to purchase books from different publishers on one order and the order is fulfilled and shipped by the wholesaler.
Some publishers have arrangements with a third party to fulfill and/or sell their books. These are often referred to as distribution clients. For example, Publisher A has signed an agreement with Publisher Z to handle everything related to selling, fulfilling, and shipping their books. There are also situations where Publisher A may choose to maintain their own sales force and to have Publisher Z only handle the fulfillment and shipping processes. This is why you may purchase books from Publisher A and the books arrive in a box from Publisher Z.
In the scenario above, another publisher has acted as the distributor. However, a distributor does not have to be another publisher. It can also be a wholesaler that provides distribution services, outlined above, to publishers. So, a bookstore may order books from several different publishers that are distribution clients of a wholesaler.
When bookstores first open, they often choose to only purchase through a wholesaler. However, it is important to understand the options that are available for each publisher and the various discount terms and schedules that each alternative provides.
In the end, individual bookstores must determine what works best for them.
Use the American Booksellers Association Book Buyer’s Handbook for extensive info on the relationships between publishers, wholesalers, and distributors. Contact your regional association for additional help.
https://handbook.bookweb.org/