Authors Guild Joins Warnings on Amazon’s Buy-Button Policy

In News by Porter Anderson11 Comments

Author and publisher groups are raising the alarm over a change in Amazon’s third-party sales policy, which the retailer says simply brings books in line with ‘the rest of Amazon.’

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By Porter Anderson, Editor-in-Chief | @Porter_Anderson

Author Advocates Protest Sales Change
The Authors Guild, late Monday (May 8) released a toughly worded statement on what it describes as “Amazon’s new policy of allowing third-party book re-sellers to claim featured status in the ‘buy boxes’ on Amazon.”

“This has the potential to decimate authors’ and publishers’ earnings.”Authors Guild

The development was described recently to Publishing Perspectives by a distributor in the industry. The effect is that when a consumer goes to a book’s sale page, the first option to buy in each format may not feature the book’s publisher’s offer, as has been the case in the past.

Below is a set of buy-option boxes chosen at random. They’re from the sales detail page for a recently published title from HarperCollins’ Ecco imprint.

Critics of Amazon’s new policy say that re-sellers, not an original publisher, may have their editions featured in buy-option boxes on books’ sales pages.

If a re-seller is getting a sale, the “ships and sold by” line on the buy button will change to that vendor’s name.

What the newly instituted Amazon approach may do, the Guild and others are saying, is promote one of the editions you normally see under a box (such as “35 New from $11.65”) into the featured spot.

That, in exchange would result in the “buy button” on the page taking the sale not to the publisher but to the third-party re-seller, presumably at a discount.

In this instance flagged by the IBPA, the buy button for Seal Press’ ‘Second Wind’ gives the sale to a vendor at $3.23, not to the publisher at $10.62 .

Publishing Perspectives’ own tests have not yet rendered a case in which the original publisher isn’t offered as the featured option.

The Independent Book Publishers Association (IBPA), however, cites a case in which a book by Cami Ostman, Second Wind: One Woman’s Midlife Quest To Run Seven Marathons on Seven Continents, had a buy button going to a vendor rather than to the original publisher, Seal Press.

In that case, the third-party re-seller is offering the paperback new for $3.23, while the Seal Press price was $10.62.

The buy box at Amazon.com for ‘Great Philosophers Who Failed at Love, May 9, 2017

In another instance provided by an industry observer to Publishing Perspectives—Andrew Shaffer’s Great Philosophers Who Failed at Love (2011, Harper Perennial)–the $6.98 new edition that’s the default on the buy button is from a third-party seller named Big River Books.

The ‘other sellers’ box at Amazon.com for ‘Great Philosophers Who Failed at Love,’ May 9, 2017

But looking below the buy button box to “Other Sellers on Amazon” reveals the $9.75 price asked for the same new paperback by the publisher. This is clearly a case in which the third-party re-seller’s offer is taking the lead in Amazon’s listings.

The new program is based on re-sellers vying for the featured spot on these buttons, as Publishers Weekly‘s Jim Milliot covers it.

“The e-tailer,” he writes, “has started allowing third-party book re-sellers to ‘win’ buy buttons on book pages. The program, charge publishers, agents and authors, is…negatively affecting sales and revenue.”

In response to Publishing Perspectives‘ inquiry, a spokesperson for Amazon says:

“We have listed and sold books, both new and used, from third-party sellers for many years.

“The recent changes allow sellers of new books to be the ‘featured offer’ on a book’s detail page, which means that our bookstore now works like the rest of Amazon, where third party sellers compete with Amazon for the sale of new items.

“Only offers for new books are eligible to be featured.”

‘Premium Real Estate’
“The recent changes allow sellers of new books to be the ‘featured offer’ on a book’s detail page, which means that our bookstore now works like the rest of Amazon, where third party sellers compete with Amazon for the sale of new items.”Amazon Statetment

The Authors Guild article stresses what it sees as a distinct disadvantage to authors and publishers: “A secret algorithm–which reportedly weighs factors such as price, availability, and delivery time–will now decide which seller (i.e., Amazon or a third party re-seller) gets the buy box.

“Amazon’s new policy states that ‘eligible sellers will be able to compete for the buy box for books in new condition.’ What this means is that second-hand book distributors—who often sell at extremely steep discounts—will be able to claim that premium real estate if they can beat out the publishers’ copies under the algorithm.”

The financial issue here, as characterized in the Guild’s statement is fundamental: “The problem with this outcome from an author’s perspective is that neither the publisher nor the author gets a cent back from those third-party sales. Only Amazon and the reseller share in the profits. This has the potential to decimate authors’ and publishers’ earnings from many books, especially backlist books.”

In its statement, the IBPA writes, “When you buy a book, Amazon pays the publisher 45 percent of the list price. This means your purchase is supporting the entity that published the book, namely the publisher, and authors are making a profit (albeit small) every time you buy because the publisher is paying an author royalty for each sale.

“Now Amazon is giving that priority spot to third-party sellers, relegating the publisher button to a far less favorable position, below the landing page screen line, often last in a list of third-party sellers offering the book for a significantly lower cost in addition to free shipping.”

But one of the vexing elements of the situation for industry critics has to do with how “new” copies are available from second-hand sellers. The Guild writes:

“One might wonder how there can be ‘new’ copies offered by someone other than the publisher and how they can be sold for $.01 plus shipping (the high shipping costs are apparently where these sellers make their profit).

“The Authors Guild has spoken to several major publishers in the past year about where all these second-hand ‘new’ copies come from, and no one seems to really know. Some surmise that they are review copies, but there are far too many cut-rate ‘new’ copies for them all to be review copies.

“Could they be returns from bookstores that never made it back to the publisher? Did they fall off the back of a truck? We don’t know. What we do know is that the re-sellers must be acquiring them at cut-rate price and that there appear to be enough of these copies available that they could replace sales for the truly new copies—those that bring money to the publisher and royalties to the author.”

If the books offered by third-party re-sellers are actually new, then payment should have been made to a publisher, and thus to an author. That makes it difficult to be sure that a sale made by a third party of a new book on Amazon is, in fact, a complete loss of revenue to a publisher and author.

The Authors Guild further speculates that the new policy may be related to Amazon’s POD (print-on-demand) services offer, but sources Publishing Perspectives is in touch with at Amazon say that this is not the case. There is, they say, no link between opening the buy box to third-party new booksellers, and Amazon’s POD offerings.

And in a piece today (May 9) on the issue, Publisher’s Lunch’s Michael Cader writes, “Angry notes will not change the situation. People should be thinking about productive responses and solutions over complaints. To that end, Penguin Random House has according to an Amazon seller forum been emailing third-party Amazon booksellers since mid-April, asking ‘specifically how and from whom you are acquiring our books.'”

About the Author

Porter Anderson

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Porter Anderson is Editor-in-Chief of Publishing Perspectives. Prior to that he was Associate Editor for The FutureBook, a channel at The Bookseller focused on digital publishing. Anderson has also worked with CNN International, CNN.com, CNN USA, the Village Voice, the Dallas Times Herald, and other media.

Comments

  1. Are the publishers certain they’re not getting paid? My understanding from knowing two individuals who operate new book businesses on eBay and Amazon is that they use Ingram and/or Baker & Taylor for order fulfillment and drop shipping direct to the customer. Take for instance a book that Amazon is selling at $10. The reseller checks Ingram, sees they can get it from there for $2.50, with shipping being being $2 to $2.50 within the continental US. He lists the book on Amazon at $3 with $3.99 shipping. Amazon takes its cut, reseller places the order with Ingram (usually with automated software), and when all is said and done they clear 50 cents to $1 in profit. Not much, but these businesses move thousands of books in a month, so it adds up. If publishers don’t want people doing this, they should revise their contracts with Ingram and Baker & Taylor to prohibit direct to home drop shipping. Amazon’s Createspace likewise has the Createspace Direct Reseller Program, in case any indie authors doing POD are wondering how third parties can also list their new books the first day they’re available.

    1. A €10 book available from Ingram at €2.50? That means the publisher has sold it to them at 80% discount (€2) at a minimum … who in their right mind would do that? The numbers don’t make sense …

    2. Hi, Dan expanded distribution is not the issue here. You know what you are doing when you tick those boxes. The issue is that those sellers are being given the prime selling position on the author’s page where it used to be given to the publisher. This means that for example in my case, where every sale of my paperback earned me $2.41 but with the reseller being given prime advantage and their button is used I only earn $0.21 for the same book. But alas we accept that. It is when resellers are allowed to take the prime selling spot that the issue starts.

      In my case, the reseller is selling my book which he won in a giveaway and he is passing it as new even though I signed the inside and wrote a quote in it.

  2. I can say for a fact that this is happening. My oldest title (published in 2012) has had it’s buy button taken by a 3rd party seller, with an $11.99 print book offered new for under $3.00. As both the author and publisher, I sent complaints to Amazon and Create Space because the publisher’s version wasn’t even listed as an option. The responses I received were basically a brush off.

    However, as of today, the publisher’s version is back in the buy button space. The listing does indicate that there are lower priced options available, but I can live with that.

    So was the change coincidence? As a result of my complaints? Or simply because whatever copy the third party seller had was sold and none are left? I have no idea.

  3. What’s to stop an indie author who uses CreateSpace for POD from entering the direct reseller’s program and ensuring he/she gets the buy box? That wouldn’t be any different than being an Amazon affiliate and earning a few cents here and there from affiliate links from their books and other products people order once they’re at Amazon. In either case, the author gets paid for the sale and gets the sales commission.

  4. I have been stressed over this for a week now. Last week I discovered that this was happening with my book on Amazon. I am an independent author/publisher and so I contacted Createspace only to be told:

    “Amazon has allowed third-party sellers to compete for the Buy Box across categories for many years. They have now extended this policy to books. In some instances, the winning merchant will be a third-party seller instead of Amazon.
    These third-party offers have existed for many years.

    This is NOT a feature that was implemented by CreateSpace, we are gathering as many examples as possible to submit feedback and hopefully get things reversed.”

    So I decided to email the reseller to enquire as to how they had gotten my book and why it was listed as “Only one left, order soon” seeing as it is a POD product. It seems that the reseller ‘won’ my book in a Goodreads giveaway. Now I don’t mind someone reading my book and selling it on. That is fine. What I do mind is the fact that this book is signed by me on the inside along with a handwritten quote from one of my characters from within the book.

    Amazon stipulate that the book has to be new, unblemished. My signature and the quote make this book ‘used’ and therefore this reseller should not have been given the prime selling position. I emailed Amazon again and I am currently awaiting their reply.

    (The books for the giveaway cost me in total just under £100 to purchase and post on to the winners – so this is just adding insult to injury for me)

  5. UGH! Just found this on my book – from $16.00 to $3.30 This is ludicrious! I am hoping that some publishers can circumvent this. This makes writing and publishing books less lucrative for everyone, even indies.

  6. One of my books got the buy box. I bought a copy just to see. I was not credited for the sale, and the received “new” copy was of such sub-standard quality that I can only think that Amazon allowed the 3rd party vendor to access the print file, and printed it themselves on super cheap paper.

    I rescinded the title in print immediately. If this continues, I will stop listing print on Amazon. Why would I list it there if I won’t make any money on sales?

  7. I am shocked to read that the copy of Susan Brooks’ book appeared to be pirated. One of my books has had the Buy button sold. You can still find the link to the publisher under New books if you hunt for it but when you get there, it says that the book will ship in “1 or 2 months.” This is ridiculous because it’s printed by Lightening Source POD and distributed by Ingram directly to Amazon. Essentially, Amazon is refusing to stock my title and has cut my online distribution line. What online sales alternatives do we have? I don’t want to get into doing my own fulfillment.

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