Insert R.E.M. Song Title: Amazon Flap Comes to Religion Houses
by Phyllis Tickle and Lynn Garrett, PW NewsLine -- Publishers Weekly, 6/11/2004
After catching the attention of indie houses, changes by Amazon.com on its co-op and discount terms is affecting religion houses as well.
The company decided last month to discontinue its participation in Ingram's vendor-of-record program and many small religion houses say Amazon has quietly talked to them about contracting directly with Amazon. Said one house: "This means that unless we contract-which we very much want to do-our books flowing only through Ingram/Spring Arbor would show up only on Amazon's Marketplace listing and never get seen, essentially."
One asked, anxiously, "If 18 or 20 of us take a half-million dollars or so each directly to Amazon without going through Spring Arbor, what happens to Spring Arbor? Does that kind of blow mean they'll cut back and I'll lose my Catholic buyer?"
One company that had 2003 sales of approximately $600,000 through Amazon told PW that it had been "pursued aggressively" this spring by the online retailer, but that it had not yet decided to sign on with Amazon's proposed 52% discount, which is higher than the 47% the publishing company gives to all retailers. (The higher discount is something Amazon is asking from most publishers.) And like some independent general trade houses, this religion publisher is expected to pony up a 5% co-op fee for advertising. "That's probably a deal-breaker for us," said a marketing executive at the company.
Others were firm in their refusal. Dave Lewis, director of sales and marketing for Baker Publishing Group, said that his house was approached with a deal from Amazon but said no. "We're definitely not in the fulfillment business," said Lewis. In addition, Baker thought Amazon's nonreturnable discount was too steep. "Basically, we just sent them the terms that we would give any retailer," said Lewis.
The upside seems to be that Amazon is offering a consignment arrangement for those who want it. Amazon also is offering greater flexibility in publisher options on site advertising and product support. "Overall, we're pleased," said another publisher, "but we'll have to wait and see how some of it shakes out to know for sure."
Amazon spokesperson Kristin Schaefer Mariani responded to a request for comment with the company's standard statement that it does not discuss the details of its negotiations with publishers and that it works "with all vendors, large and small, in the same way, with the goal of maximizing sales through Amazon.com."
