Bookselling

Indiebound Needs a Makeover if It’s Going to Fight Amazon

10 August 2019

From Publishers Weekly:

As independent booksellers, it’s easy to get riled up about Amazon. It’s certainly disheartening to know that amid its web services, video streaming, and grocery offerings—to name just three of its major business areas—books aren’t even close to Amazon’s sole priority. So when we see authors—in many cases authors we respect or admire—linking to Amazon on social media or their websites, it’s not uncommon for independent booksellers to boil over. I know I have. But I ask: what choice are we giving them?

Yes, we have IndieBound, and I pepper authors with their IndieBound links on Twitter. But authors want to have a place where they can see what people think of their books. A select few authors are able to see what people think when their books land on a bestseller list, literary award long- or shortlist, or best-of list. But the overwhelming majority of authors only have two ways to find out what people think: Amazon and Goodreads, which has been owned by Amazon since 2013.

On Amazon and Goodreads, users can leave ratings and written reviews. Some of these end up as comedic fodder, but most are helpful to authors who want feedback, if only in the aggregate. Many authors encourage this behavior, believing that when users leave reviews and ratings, it helps their sales (and it probably does). Independent booksellers don’t have an independent platform that authors can encourage their readers to use to provide feedback.

Amazon goes one step further on its site with its bestseller rankings.

. . . .

Authors can be forgiven if they take screenshots of those [Amazon sales] rankings or badges and splash them on their social media. After all, everyone wants to be successful. As independent booksellers, we don’t have an independent platform that provides authors with this kind of public sales data.

We could, though. Our sales reports fuel the Indie Bestseller List. This data is waiting to be segmented, chopped up, and dropped onto IndieBound for all to see. Adding a section for ratings and reviews would make IndieBound more competitive with Amazon and Goodreads.

I have brought this up to the American Booksellers Association on two occasions. To date, it has not taken action on the idea—which, honestly, is understandable. Like most of us, the ABA is overwhelmed. In addition to its normal heavy workload, it’s trying to push ambitious projects—such as a health insurance plan for booksellers and a centralized billing system for all publishers, among other initiatives—across the finish line. This year is particularly challenging for the ABA: it’s simultaneously managing all of this work and navigating a leadership change, as the organization’s CEO and CFO get set to retire. But at some point, this will need to become a priority.

. . . .

The authors whose books populate our bookstores who actually love Amazon are few and far between; I certainly haven’t met any.

Link to the rest at Publishers Weekly

PG doesn’t know the author of the OP, but believes he’s likely a nice guy.

However.

PG tried to count how many ways the OP was delusional/parochial/pathetic/wishful, etc., but didn’t have enough time.

PG did, however, wonder if any bookstore has promoted itself as “The place to find authors who don’t like Amazon.”

Presumably, this message might attract readers who don’t like Amazon.

Who knows? Perhaps it’s a niche market that everyone else has overlooked.

An Open Letter to James Daunt

7 July 2019

From Publishers Weekly:

Dear Mr. Daunt:

I was excited to read that you will be taking the helm of Barnes & Noble when its acquisition by Elliott Advisors is completed later this year. I hope you can help this great retailer, much as you did U.K.’s Waterstones bookstore chain.

Do you mind some advice? For some time, I’ve been bumping around the publishing world as a reader, author, and freelance editor. My window on that world might be narrow, but it still offers a decent view. Here are some things I’d love to see happen as you strive to make B&N the go-to bookstore for millions of Americans:

1. Sell books. I know that seems obvious, but sometimes when I go into a U.S. bookstore, I feel as if I’m in Tchotchkes & Games R Us. Don’t get me wrong—I like the displays of toys and gewgaws, but they take up an awful lot of store real estate. One of the things I loved when visiting London bookstores (Foyles in particular) was the sense of being surrounded by so many books. Books everywhere! You couldn’t help but want to buy some.

2. Advertise your wares. It amazes me that the book industry, which is part of the entertainment industry in terms of competition for similar dollars, does very little advertising. While we’re all bombarded with messages urging us to see this movie or that streaming series, we rarely see anything urging us to lose ourselves in a written story. Selling books is hard. Selling them with little to no paid advertising is even harder, and, I believe, a remnant of a previous century’s thinking about how books should be promoted.

3. Advertise the bookstore experience. Going to a bookstore is different than going to a clothing store, hardware store, grocery store, or other stores. You’re not always looking for something specific. You might just have a vague idea, in fact, of what you want. While other kinds of shopping can seem frenetic, book shopping can be calming and restorative. Remind your customers of this in paid ads, maybe even featuring celebrities who’ve made some books popular—Oprah Winfrey or Reese Witherspoon, for example.

. . . .

6. Recognize that writers are customers. Amazon realized this at the dawn of the e-reader revolution. They created a platform for authors to sell directly to customers without a gatekeeper publisher. Barnes & Noble was slower to see the value of this customer segment and to figure out how to help authors reach readers. (I will confess to bypassing its e-publishing outlet with some of my own self-published novels.) Look for ways to make the e-publishing experience easier and more attractive to authors. If you help them make money, you’ll make money, too.

Link to the rest at Publishers Weekly

New Chapter? UK Print Book Sales Fall While Audiobooks Surge 43%

27 June 2019

From The Guardian:

UK book sales fell for the first time in five years in 2018, despite the success of bestsellers such as Michelle Obama’s autobiography, Becoming.

The UK publishing industry was hit by a surprise fall of £168m (5.4%) in sales of physical books last year, ending a period of growth stretching back to at least 2014.

Sales fell from £3.11bn in 2017 to £2.95bn last year, according to the latest figures from the Publishers Association, which published its annual yearbook on Wednesday.

. . . .

Audiobook sales surged 43% to £69m last year, with Amazon’s Audible service dominating sales. However, Stephen Lotinga, the chief executive of the Publishers Association, said this was not the sole reason for the decline in print sales.

“One of the biggest changes has been the increase in audiobook sales,” said Lotinga. “There is some substitution away from print, audio has surged, but there was also always going to be a point where print sales couldn’t continue rising every year.”

. . . .

“We think that podcasting is helping to drive a resurgence in audio in general, including books,” he said. “Publishers are investing a huge amount in building [recording] studios and securing the services of top quality actors to voice the books. We think the whole audio scene is showing huge opportunity.”

However, he warned against pronouncing the beginning of a terminal decline in physical book sales in the same way the music industry has experienced with the move from CD to streaming in the last decade.

. . . .

Overall, the digital book market, which as well as audiobooks includes ebook sales and subscriptions to services such as Amazon’s Kindle Unlimited, rose 4.6% to £653m.

Link to the rest at The Guardian

Barnes and Noble Bought by Hedge Fund

23 June 2019

From JC Simonds:

By now, you will no doubt be aware that Barnes & Noble Booksellers (for whom I work part time) has been sold to Elliot Advisors, a Private Equity/Hedge Fund that had already bought out the U.K.’s Waterstone’s.

. . . .

There is no question that a private equity company snapping up a retail chain usually involves the sale and liquidation within 5 years. It’s almost a given. See stores like Toys R Us for a cautionary tale. And that may be the case here. Time will tell.

James Daunt, who has run the Waterstone’s since 2011, will be the CEO of Barnes & Noble, as well. He bought the failing Waterstone’s (about the size of Walden Books before it went down) in 2011, and has since returned it to profitability. Daunt is apparently a physical book zealot who involves himself in every aspect of bookselling.

. . . .

The hallmark of his turnaround method? Something American indie booksellers figured out 10 years ago: your bookstore’s community is what’s important. Focus on what your area wants in a bookstore and do that. Specialty scones and math books in one town? Do that. Harry Potter nights and kids books in another? Do that. Which makes buckets of sense.

So, the model is a collection of independent bookstores run overall as a chain.

The B&N store in which I work is the most profitable in the district. Yes, I know, you’re thinking, “Reno reads?” Yeah. Madly and passionately. And they drag their kids out to every event we can manage. The store is fairly crowded from open to close, and we usually have to throw people out at closing. Friday and Saturday nights it’s a popular date spot. And yes, I have found couples, um… But there are also refugee Moms and Dads in the café.

. . . .

You know what we don’t have? A decent “Nevada” or even “Reno” section. It’s tiny. We only get in 10 maps of the area per month. TEN. They are sold out in a week (yes, maps sell), and only restocked monthly. (I’ve got 50 copies of a Dallas map. Twenty-five of Athens.) We don’t have any books on local gardening. We hide the Nevada ghost town books in the Paranormal section. We only do 2 local author events a year, and have no local author section at all.

So, it would be terrific if we could be more “Reno-centric.”

A large problem that B&N has faced is the founding father of the company, Len Raggio. He was the retail book bombfather back in the 90s, but he has not worn well in the ebook/ecommerce age. I’m told he’s a wonderful individual, but he’s missing a few cogs in the old brainbox these days, as evidenced by the weird C-Suite antics in the last 2 years. Here are some of the problems I see as just a low-level retail grunt:

  • ~B&N the store does not match prices with its own B&N website.
  • ~The registers and computer system run off Windows XP, on ancient machines with cranky pin-pads, on an unreliable AT&T internet connection.
  • ~There is no way they can track what is selling and what isn’t; they have a very antiquated inventory system with no depth or real search/data management tools.
  • ~Has BOPIS, but makes you stand in line at register to pick up.
  • ~The AC at our store is broken, so the upstairs can be up to 90 – 100 degrees. (Our store is 20 years old and the physical plant is suffering.) It took a total desperation move by an assistant manager to get it fixed after almost a year (now people are complaining it’s too cold).
  • ~The company fired almost all the full-time employees when “Obamacare” was implemented. There are only 2 bookfloor positions that are full time with benefits, out of about 35 booksellers (not counting managers, of which there is a Manager, 2 Assistant Managers, and 2 Merchandising Managers).
  • ~Management has no control over how much of any book/music/gift item is sent. That’s up to the folks in NYC, who have apparently never left their office to see a real bookstore, or checked to see the consequences of their merchandise decisions.
  • ~Barely supports (or sells) its proprietary ereader, the Nook.

Link to the rest at JC Simonds

Barnes & Noble, with Sales Falling, Is Sold to Hedge Fund

9 June 2019

From AP Wire via Fox4KC.com

Barnes & Noble is being acquired by a hedge fund for $476 million and will be taken private.

The national chain that many blamed for the demise of independent bookstores has been ravaged by Amazon.com and other online sellers, but remains a critical outlet for publishers.

On Friday, it was acquired by Elliott Management and, in a twist, will likely become a national chain with a business model more akin to that of a local bookstore.

Elliott bought Waterstones one year ago, a national U.K. book chain that has successfully navigated through the online/e-reader revolution by returning a lot of autonomy to the managers of its nearly 300 stores, who can select books that they believe local readers want.

The man who runs that U.K. chain, who will become CEO of Barnes & Noble, said that is what he has in mind for Barnes & Noble.

Leonard Riggio acquired the century old Barnes & Noble in the 1970s, including its flagship Manhattan store, in the 1970s. He pursued aggressive expansion throughout the 1980s and established Barnes & Noble as a national phenomenon with the acquisition of B. Dalton Bookseller and its 797 locations in 1987. It became the nation’s second-largest bookseller and began selling books online in partnership with IBM and Sears.

The company continued to gobble up other larger booksellers like Doubleday Book Shops and also BookStop, which ran discount superstores in Texas.

By 1993, Barnes & Noble was a publicly traded company that was upending the publishing industry.

. . . .

Last year, Riggio was brought on stage [at] BookExpo 2018 in New York City.

. . . .

“Today, we stand together in common cause to promote and support bricks-and-mortar bookstores,” said Teicher. “I’ve been quoted as saying that it’s in the long-term interest of the overall book business that Barnes & Noble not just survive but grow and prosper.”

But Barnes & Noble has suffered.

With about 630 retail stores in the U.S. as of last year, it is smaller than when it acquired of B. Dalton Bookseller in the late 1980s. Its revenue peaked in 2012, and it has fallen every year since.

. . . .

“In chain bookselling, you need to try and get the best store for each location,” [new Barnes & Noble CEO James] Daunt told The Associated Press. “What works in Jacksonville, Florida, isn’t necessarily going to work in Hawaii.”

. . . .

Waterstones organizes multiple, simultaneous events at its stores, making them “a “fun place to discover books and enjoy the particularities of a bookstore.”

. . . .

Some industry watchers are skeptical, including Mike Shatzkin, the CEO of Idea Logical Company, a book-industry consulting company.

He called the entire large-store model for any retail chain “a 20th century concept” extinguished by the internet.

“It doesn’t surprise me that Barnes and Noble’s management never came to that conclusion because they built their fortune building bigger stores,” he said. “And I’m not sure Waterstone’s is going to lead them to a different approach.”

Link to the rest at AP Wire via Fox4KC.com

Indie Booksellers Report Strong Holiday Finish

6 January 2019

From Publishers Weekly:

Although independent booksellers reported difficulty in keeping certain titles in stock, the problem was not enough to dampen sales at independent stores this holiday season.

In fact, reports from around the country indicated overall sales throughout the holiday season were strong, even record-breaking. Some stores reported having their best sales days ever. Lots of interest in Michelle Obama’s memoir Becoming (Crown) brought customers into stores, as did a range of other titles, including Educated by Tara Westover (Random House) and Circe by Madeline Miller (Little, Brown) on the adult side and Snowy Nap by Jan Brett (Putnam) and The Wonky Donkey by Craig Smith, illustrated by Katz Cowley (Scholastic), on the children’s side.

“The Friday before Christmas, when the stock market tanked, was the biggest sales day we’ve had in 43 years! And the Saturday after that set another record,” said Vivien Jennings, owner of Rainy Day Books in Fairway, Kan., a Kansas City suburb, who noted that this year saw an unexpected doubling in gift card sales. Jennings said the store kept Becoming in stock throughout the holidays in part by clearing out all local Costco locations of their inventory. “We also watched inventory runs very carefully, and jumped ahead if we saw anything trending,” Jennings said, adding that, overall, sales were up 10% over 2017 for the season.

Jennings was among several booksellers who cited difficulty in keeping Salt, Fat, Acid, Heat by Samin Nosrat, illus. by Wendy MacNaughton (S&S); The Overstory by Richard Powers (Norton); and Frederick Douglas by David Blight (S&S) in stock.

“Those were the three titles we had the most trouble with,” said Todd Gross, manager of Phoenix Books in Downtown Burlington, Vt. “We only got 30 of Salt, but could have sold 150.” He remarked that getting books from S&S has been particularly challenging for quite some time. “They can take 10 days to get us books, compared with two or three for Penguin Random House.” Gross noted delays in getting books can kill sales, and he praised Bookazine and Baker & Taylor in particular for great service during the holiday season. “They were quick to tell us when in-demand titles were back in stock,” said Gross, who said that his holiday orders flip from relying on publishers 90% of the time during the year, to relying on wholesalers for 90% of orders during the holidays.

Link to the rest at Publishers Weekly

PG says the shipping operations of publishers only have one thing to do – ship books. They have been performing this function for a long time.

Likewise, the production departments of publishers have only one thing to do – print enough books to meet demand. They also have been performing this function for a long time.

A long time ago when PG was a baby lawyer, he was working for a law firm in Los Angeles and talking to one of the firm’s clients.

This client had started the first book wholesaler in Los Angeles and PG was learning about the client’s business. Basically, the business worked this way:

  • Bookstores could purchase books from publishers at lower prices than they could from the client.
  • However, publishers were not good at processing orders and shipping books.
  • The client was very good at processing orders and shipping books.

So, the client bought books from publishers and put them in a warehouse. Because he bought a lot of books, he had negotiated maximum volume discounts.

Bookstores bought their books from the client, even though he charged higher prices than the publishers did, when they didn’t want to wait for books to arrive from the publishers.

The client made a lot of money doing this, particularly when there was a bestseller. The bookstores wanted copies to sell to customers and they could get them from the client within a day. This client later made even more money when he sold his business to Baker & Taylor several years later.

Some businesses are set up to sell their products only through wholesale channels. This can work financially because they don’t spend any money fulfilling small orders. They crate and ship an order for a thousand widgets using bulk shippers instead of individually packing one hundred boxes, each with ten widgets inside, and paying UPS to deliver each one to a separate location.

Other businesses are set up to sell directly to retailers. This can work financially because they can sell to the retailers at a higher price because they’ve cut out the costs and profits of a middleman.

Apparently, typical book publishers still try to do both, so they bear the expenses of each type of business without being terribly effective at satisfying their customers.

‘Showrooming’ Solution: Sign for the Times

20 December 2018

From Shelf Awareness:

The Golden Notebook, Woodstock, N.Y., has an answer for “showrooming,” the habit of some bookstore customers to learn about books at bookstores and then order them online on their phones, sometimes in front of booksellers who just made the recommendation.

. . . .

 

. . . .

 At the Golden Notebook, a sign on the front door reads, “Please inquire at counter regarding in-store photography. Thank you!” As a result, wrote co-owner James Conrad, “we have no issue approaching a customer photographing and saying ‘excuse me, we do not allow in-store photography.’ We then attempt a teaching conversation about how we struggle against the internet and how hard we work to find the unique and sometimes extremely hard to find types of titles that reflect our unique community and customers. Usually people are extremely apologetic and sometimes they just say nothing because we basically told them we know exactly what they were doing.

“The sign also gives people the chance to just ask at the counter first and when they say they have a blog and want to promote us or live far away and can’t carry the hardcover home we say go ahead and photograph! (Just make sure to use an independent bookstore when you get home!)”

Conrad added: “Without the sign, you seem rude to mention it, but with it you can have a more polite moment to tell people the importance of small businesses and the struggles we face.”

Link to the rest at Shelf Awareness

While PG doesn’t take joy from the struggles of any small business, he thinks this is a little pathetic.

Do the proprietors of a bookstore in Woodstock, a noted upscale tourist destination known for its art, music, etc., think their customers don’t know about Amazon? Do they think their customers don’t know that the bookstore is trying to keep them from making purchases at Amazon?

Are the store owners trying to persuade visitors to purchase a product by making the visitors feel guilty?

Is a first-time visitor to the store who uses a cell phone camera in a way they are completely accustomed to doing almost everywhere else in the world going to be more or less inclined to visit the bookstore again if they view the management as being a bit unfriendly?

Is it possible a reasonably intelligent visitor might see the sign and think, “Oh, yes, I can buy anything in the store cheaper at Amazon?” How about a visitor who prefers ebooks to printed books for any of a number of reasons? Is he/she being told there’s nothing the store is interested in selling him/her?

 

What’s the Matter with Fiction Sales?

4 November 2018

From Publishers Weekly:

According to 2017 estimates released this summer by the Association of American Publishers, sales of adult fiction fell 16% between 2013 and 2017, from $5.21 billion to $4.38 billion. The numbers, though not a major worry, raise questions about the books the industry is publishing and what consumers want to read.

Since 2013, fiction sales fell every year with the exception of 2015. That year they rose 1%, helped by Harper Lee’s Go Set a Watchman and three other novels that topped one million print copies sold. (The AAP tracks all major formats—print, digital, and audio—in its sales estimates.) Interviews and discussions with various industry members uncovered different theories about why there’s been a downturn in fiction.

The most commonly shared view is that it has become extremely difficult to generate exposure for novels. Fiction, more than nonfiction, depends on readers discovering new books by browsing. Now, with the number of physical stores down from five years ago (despite a rise in ABA membership), publishers cannot rely on bricks-and-mortar stores providing customers with access to new books.

Nor can publishers depend on media outlets to make up for the gap left by the shrinking footprint of physical bookstores. Review space in mainstream media has been slashed, cutting off another possibility for readers to learn about new fiction.

The upshot of those developments is that publishers have found breaking out new writers—never mind developing new franchise authors—increasingly difficult.

Creating authors who can draw readers via name recognition alone is crucial to selling novels. Research done by the Codex Group shows that the author is the most important factor in a person’s decision to buy a novel. Codex founder Peter Hildick-Smith says that with so much inexpensive genre fiction now available at “subprime price points under $5” (from such channels as Kindle Unlimited), publishers must invest to develop brand name authors who can command premium-price loyalty.

That process can require a multiple-book commitment. It can also require a type of commitment that’s difficult for publishers: sticking with authors who don’t produce instant bestsellers.

Based on Codex research, a person typically reads an average of three books by an author before becoming hooked on his or her books. Publishers, however, as Hildick-Smith and others interviewed noted, seem increasingly reluctant to support authors whose books don’t immediately sell. “Creating a dependable, bestselling author is a multibook investment that requires different strategies and great persistence,” Hildick-Smith said. “It’s not a one-and-done launch.”

The difficulty publishers have recently had in creating brand name authors can be seen in BookScan numbers. The service, which tracks only print sales, shows that fiction sales continue to be soft. Moreover, the BookScan figures show that no fiction title topped one million copies sold in 2016 or 2017 at outlets that report to the service. In 2015, the only year in the past five when fiction sales rose over the previous year, four novels sold more than one million print copies each, according to BookScan: Watchman (1.6 million), Grey by E.L. James (1.4 million), The Girl on the Train by Paula Hawkins (1.3 million), and Anthony Doer’s All The Light We Cannot See (one million).

Link to the rest at Publishers Weekly

Attentive readers will note the single mention of Amazon – Kindle Unlimited, associated with “subprime price points under $5”. Traditional publishers can’t and won’t compete in that market, preferring authors and books with “premium-price loyalty”.

PG suggests that category title is not properly worded. Instead, he believes that traditional publishers are trying to promote authors and books that attempt to command “over-priced loyalty” from readers.

As readers come to understand that most of the money they pay for traditionally-published books goes to middle-folk like bookstores and publishers with very little trickling down to authors, their loyalty to premium pricing may erode.

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