Taking The Measure of Used Books

by Jim Milliot, PW Daily -- Publishers Weekly, 9/29/2005

In findings that will surprise few in publishing, the Book Industry Study Group report on used books found a rapidly growing segment that is likely to continue to be one of the biggest growth areas in the industry. The size of the used book market for non-education books-- trade and professional titles--was $589 million in 2004, while sales of used textbooks added another $1.6 billion, putting the total used book market at $2.2 billion last year, a 11.1% increase over 2003. Total unit sales were 111.2 million last year, with trade and professional unit sales hitting 72.6 million, while education unit sales were 38.6 million.

Growth in the last few years has been fueled by online retailers. BISG estimated that sales of used books through online retailers rose 33% in 2004, to $609 million, while sales through bookstores rose 4.6%, to $1.57 billion. In the trade/professional segment, online used book sales were $429 million last year, while sales through bookstores were $115 million. Sales through other outlets, such as yard sales, were $45 million. The vast majority of used textbook sales were made through college bookstores, but even in this segment, online sales outpaced growth through traditional stores.

Jeffrey Hayes, who directed the study for BISG, said he expects used book sales to continue to increase at a steady pace as consumers become more comfortable with the idea of buying used books, and as the availability of used books increases. In the future, "there will be more buyers and sellers" of used books, he said. Online retailers, such as Alibris and Abebooks, are developing tools that make it easier than ever before to buy used books, and companies are aggressively adding to inventory, Hayes said.

In addition to making it easier to buy used books, online retailers have improved the reputation of used book dealers. In a survey conducted by Hayes, the majority of consumers said they bought a used book even though they knew a new book was available. Furthermore, a majority said they would recommend buying a used book to a friend. All this momentum is likely to "ratchet up" used book sales in the future, Hayes said. Used books are now considered mainstream and the industry is approaching a point were consumers may choose to delay their purchases of a new book for a few weeks--until a used copy becomes available.

The study gathered information from such major players in the used book business as Alibris, Abebooks, Amazon, Biblio, Barnes & Noble, eBay and Powell's. The full report is expected to be ready next month from BISG.