Book publishing is big business in the UK and, despite the growth of ebooks and audiobooks, print is still king. Even with other options available, many people still prefer to read a physical book; research even suggests that reading a printed copy is better for the brain.
In the UK, the printed book market is estimated at £3.8 billion, with the total publishing industry worth £7.4 billion. Encompassing consumer, academic and educational publishing, it shows the industry is thriving despite concerns about the future of publishing.
Outside the UK’s big five publishing houses, many independent publishers are flourishing, providing fresh new literature, thoughts and ideas to readers through their books. According to the Independent Publishers Guild, over 600 independent presses are active in the UK.
In many independent publishing houses, the staff wear multiple hats. They can cover everything from author contracts to editing, typesetting, marketing and PR, warehousing, packing and posting – in short, a big job.
How to make sure that books reach readers
One of the big challenges faced by independent publishers is how to get those books into the hands of the reader.
Part of this is a marketing challenge, raising awareness and creating persuasive communications that convince customers to buy. The other part is fulfilment, the logistics of storing, packing and delivering those books to the buyers.
While the creative side is best left to those who know the products, and the writers and readers best. It needs a passion for the unique vision and brand of the imprint that is rarely found through outsourcing.
However, the logistics of fulfilment require a different skill set and expertise, one which is not always available in-house. It also requires a significant time investment that takes hours and energy away from working with authors and their work, and building the readership.
This is where third-party logistics and fulfilment for books can step in to fill the gap. By reducing the amount of time given to the mundane tasks of picking and packing orders, it can allow publishers to focus on the part of the job that gets them excited.
How are books sold to readers?
Publishers sell books in the UK in three main ways: direct to the reader, through a physical or online book retailer, or through a wholesaler to retailers and libraries.
The process of delivering books to readers depends on whether the purchase is wholesale or direct to the reader, and also how the books are printed.
Traditionally, a large order of books will be printed and stored while they are being sold. When the stock runs out, a new print run is ordered. These books need to be warehoused by the publisher, wholesaler or logistics company until they are sold.
Another option is a print-on-demand service, where a reader buys a book that is not yet printed; it is produced and then delivered. It reduces upfront costs and storage fees; however, it sometimes leads to delays or a lower-quality finished product.
What is the difference between wholesale and direct-to-consumer models?
Booksellers can buy books directly from the publisher or from a wholesaler via sale or return, for less than the cover price. If the product is then sold in bookshops and outlets, a portion of the sale goes to the publisher.
If it fails to sell, the book is returned to the publisher or wholesaler after a set amount of time. The books then need storing before they can be sold again, often at an even larger discount.
Wholesale book sales
Big wholesale distribution services hold online catalogues with information about each book, including the ISBN and description, that allow booksellers to choose what to order.
When books are published, they are delivered directly from the printers to the wholesaler, who records, stores and then delivers orders to buyers. They buy the books in bulk from the publisher at a discounted price, and then fulfil all the consignment orders.
Direct to bookshops
Smaller, independent bookshops, retailers and events organisers often order books direct from publishers on a sale-or-return commission basis. This bypasses the larger wholesalers and increases the profit for the publisher.
The process of picking and packing the orders can be done either by the publisher themselves or by a distribution company that stores and delivers them on the publisher’s behalf.
Direct-to-reader book sales
Selling direct to the reader either via the publisher’s own Shopify website or through Amazon also bypasses the wholesaler process. This route makes the most profit per unit sold for the publishing house, as neither the wholesaler nor bookseller take a cut.
The downside is that the publisher is responsible for warehousing the books and fulfilling every order, which can be a complicated and very time-consuming task. An alternative is to use a third-party company to fulfil the orders, saving time and resources.
When should a publisher use third-party fulfilment?
When a publishing house is established, its initial print runs are likely to be small. A low number of perhaps a few thousand or even a few hundred copies can test the waters with a new book or new author.
Fulfilling sales orders at that level is likely to be manageable, and the storage space needed is relatively small. However, when a publisher is more established, and the author or book is well publicised, a much larger print run is necessary.
At that point, there are several challenges to overcome:
- Adequate, dry, safe storage for the print run
- Space to check and pack up orders
- Tracking the orders, deliveries and returns
- The time and staff required to fulfil the orders
- A shipping system that is reliable and does not require regular trips to the Post Office
- Scalability when sales take off, or there are seasonal rushes
What are the advantages of third-party fulfilment for publishers?
Using a third-party fulfilment service for publishing can help take some of the stress out of growing your business. There are several benefits of outsourcing the warehousing, tracking, packing and delivery of orders.
Warehousing
Dry, clean storage is essential for paper-based products; no one wants to read a water-damaged book. There is no need to rent a warehouse as storage is included, reducing business overheads.
Third-party logistics companies can take direct delivery of the books from the printers, which saves time too.
Trackable stock
Book inventory is trackable so publishers know exactly how many are in stock, how many are sold and when to reorder.
Integrated systems
The distribution service can be integrated into an Amazon marketplace, Shopify site or other sales platform to deliver a bespoke service.
Room for growth
Operations can be easily scaled if fulfilment is outsourced, as the infrastructure and staffing are already in place.
Fewer staff needed
Outsourcing reduces the need to employ more staff to achieve the same results, and employment costs such as National Insurance and Pension contributions are avoided. It is also ideal if there are seasonal fluctuations in sales, so there is no need to employ Christmas temps, for example.
Delivery speeds
Using a third party for distribution can mean quicker delivery times, as the management of stock and orders is the sole focus rather than one of the many roles an independent publisher might have.
Economy of scale
Using a third-party fulfilment company means having access to economies of scale when it comes to packaging and deliveries. Courier services can be negotiated to achieve a better price, and can also be diversified if needed, allowing for better business continuity.
Focus on growing the business
Without the time drain of picking and packing orders, publishers are free to concentrate on the true purpose: finding great writers with great stories and sharing them with readers.
Bypassing the wholesaler
Outsourcing book fulfilment can save a publisher money because it bypasses the wholesalers who take a significant discount per unit for their services.
Without the sale-or-return system, it is easier to see how many actual sales have been made, and books are not returned if unsold; the publisher owns the whole inventory.
Can third-party fulfilment benefit self-published authors?
There are many reasons why an author might choose to self-publish rather than try to get published through a traditional publishing house. Reasons include:
- More control over the creative process
- More control over how the book is marketed
- Faster process from writing to published book
- Getting to keep up to 70 per cent of each book sale
- Publishing a book that is not considered marketable by big publishers
While some self-published authors choose print on demand as a cheaper option to distribute their books, for others a bulk print run is a better way to control the quality of the product.
With a good marketing plan, access to BookTok influencers and viral recommendations, and good old-fashioned word of mouth, self-published books can prove very successful.
A recent example is British crime writer L J Ross, who sold ten million books in only ten years through self-publishing. Initially using Amazon, she then transitioned to ordering large print runs under her Dark Skies imprint for booksellers.
When a self-published author reaches a high level of physical, rather than ebook, sales, it is time to consider whether their time is best spent packing orders or writing the next novel.
Using a third-party fulfilment service for warehousing and distribution can take the load off and allow the writer to focus on creating new work and promoting that work.
