Returns total $7.1 billion annually for the book business as a whole, and small publishers alone account for $1.95 billion in returns, according to a new 41-page report on book returns and their impact on small presses commissioned by Publishers Marketing Association.
"Returns are the bane of the publishing industry," said PMA executive director Jan Nathan. One of the costliest aspects of the business, returns at a range of publishers of all sizes have risen significantly during the first part of this year. The major factors are the worst Christmas season in five years and the resulting fallout, including several high-profile bankruptcies, such as Crown Books, Wallace's Bookstores and Bibelot.
Among the report's recommendations are net pricing, expanding e-book and print-on-demand, more effective markdowns and more special sales. As a result of discussions already engendered by the report, PMA plans to set up a roundtable on returns later this year.
The PMA report grew out of a project begun by the Book Industry Study Group and explores the history of returns, the economics of returns and returns in other industries.
Two years ago PMA, which serves more than 3,400 small presses, began issuing a series of "white papers" on the book business. The first focused on the size of the book industry and was followed by one on sales representation and distribution for independent publishers. PMA is currently at work on a report on salaries, which will be broken down by the size of the company and geographic area.
The report, which was prepared by Cross River Publishing Consultants Inc., is available online (www.pma-online.org) and is downloadable for a fee of $25 for non-PMA members.
