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Lessons From Amazon / BookSurge

April 11, 2008 At the end of March, Amazon rocked the publishing world by announcing that, if authors and POD and subsidy publishers wanted to continue to stock their books, they would have to set up an account with Amazon’s in-house book printing unit BookSurge.  Authors and publishers were incensed.

How dare Amazon do such a thing! Amazon was clearly discriminating against POD publishers, using its market monopoly to line its pockets, and wresting away the control that authors and publishers have over their own businesses.

I’m a small publisher, and when I heard Amazon’s announcement, I was offended, too. It meant adding another supplier, and based on the negative industry buzz, I was concerned about being forced to accept less-than-desirable quality, poor customer service, and having to take the time to redo all of my files to suit non-industry-standard formatting. All to satisfy the greed of a giant retailer.

Then I got tired of spending my time complaining on industry list serves and decided to call BookSurge to get the real scoop instead. When I was done, I found that, in fact, Amazon was actually being a better partner than it was being given credit for. 

It turns out, the BookSurge decision was based largely on logistics. Amazon’s premium shipping and product pairing had taken off like gangbusters. Now, waiting even 24 hours for POD fulfillment on certain titles meant that its premium services wouldn’t be available on all products at all time. Not good for Amazon. In the end, the BookSurge deal would benefit Amazon (by making its premium services available to all customers all the time), benefit its customers (by having access to premium services for all products, all the time), and benefit authors and publishers (by, in many cases, increasing their margins on products sold through Amazon).

What can we learn from the Amazon / BookSurge example?

Often, marketers are afraid of anything that requires change or to accept a new business or revenue model. It’s easier to shoot arrows from a distance, then turn around and continue to do the same-old, same-old and just try to increase profits by doing more of it. But sometimes, making a fundamental change in the way you do business can reap bigger benefits in the long run. You just have to be willing to look at your business model from a new angle -- and granted, sometimes that's difficult to do. Instead of sitting on the sidelines, make some calls. Talk to some suppliers. Get on the inside and see how the change might benefit you.

Have you been resistant to looking into Web-to-print? Just-in-time inventory management using print-on-demand? 1:1 (personalized) printing? If so, then consider the Amazon / BookSurge example. Your inertia could be leaving money on the table.
Have questions? Comments? I'd love to hear from you. You can email me at info@digitalprintingreports.com. For more information on primers for marketers and small businesses on digital, 1:1, Web-to-print, and personalized URL applications, visit Digital Printing Reports. You can also keep up with all of my posts on EBS, The Inspired Economist ("Greening Print Marketing"), and other blog sites by following me on Twitter.

Posted by Heidi Tolliver Nigro on April 11, 2008 | Comments (10)


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April 23, 2008
In response to: Lessons From Amazon / BookSurge
John Anker commented:

Are you kidding me? You actually bought into that line? Their public-faced reason (although when you look at it, it's not about customer service, but still about their profit line) might ALMOST be tolerable if, in fact, BookSurge wasn't well documented as being one of the worst-quality POD printers available, serviced by slow, unresponsive customer service. Let me get this right: they are "improving" customer service by forcing POD authors to go through their subsidiary that is best known for its lack of customer service? Please, Heidi, for the sake of your own professional reputation, take a 2nd look at this. There is a reason that every writer's organization in the country is standing against this move.




May 1, 2008
In response to: Lessons From Amazon / BookSurge
Heidi Tolliver-Nigro commented:

No, I didn't "buy into" anything. Yes, it is about profits, but profits are dependent upon logistics. Third-party POD publishing blows logistics out of the water. If third-party POD prevents Amazon from offering premium services -- which impact ALL product categories, not just books -- then it has a right to control that source of supply. On the quality issue, yes, BookSurge USED to be a poor-quality publisher, but that was before Amazon purchased the company three years ago. From what I've seen, its poor reputation is largely dependent upon experiences from the pre-Amazon days. Is it a premium "publisher" today? No. Are things much better? Yes. Just because the associations are in an uproar doesn't mean they are right. They are doing what their members want them to do, and their members' reactions appear to be driven by emotion, not thoughtful responses to the full range of issues on the ground.




May 11, 2008
In response to: Lessons From Amazon / BookSurge
Jacqueline L. Jones commented:

I think the best approach for publishers is to share their concerns directly with Amazon. Some of the complaints are valid. As with all new policies, this one has some kinks and unintended consequences. Those who will work with these policies daily are best qualified to share what those consequences may be. Driving publishers out of business won't help Amazon's bottom line.




May 23, 2008
In response to: Lessons From Amazon / BookSurge
Heidi Tolliver-Nigro commented:

How are publishers being pushed out of business? Amazon's whole point is that these publishers are selling such low volumes that they don't merit keeping books in stock. So if AMZ has to order on demand, it puts a chink in the workflow. If a publisher is selling volumes that low, then it's either in trouble already or it's making its money on book packaging, not on book sales. The only way the Amazon decision could hurt those POD publishers is if it hurts them in the eyes of customers. "If you can't get me on Amazon, why should I publish with you?" My company, Strong Tower Publishing, prints POD through Lightning Source (LSI), whose customers are traditional publishers and more committed small presses and self-published authors. So far, my Amazon status hasn't been affected -- nor any other LSI clients, either.




June 17, 2008
In response to: Lessons From Amazon / BookSurge
Jacqueline L. Jones commented:

The cost of changing over to BookSurge is prohibitive and extremely time-consuming for larger publishers. The change won't be a problem for me because I only have one book to convert and I can use CreateSpace. Publishers like BookLocker, who recently filed a class-action suit, are facing huge conversion costs.




June 18, 2008
In response to: Lessons From Amazon / BookSurge
Jacqueline L. Jones commented:

I contacted Amazon, as I'm sure other publishers did, and they have made adjustments in their programs. There are specials and lower cost options available,and I've heard that rumors about BookSurge quality are left over from before Amazon bought the company.




June 30, 2008
In response to: Lessons From Amazon / BookSurge
Heidi Tolliver-Nigro commented:

Complaints about BookSurge quality are generally left over from the pre-Amazon days. All of the equipment, personnel, and business practices have been overhauled. There may have been some rough patches immediately after the takeover, during the transition, but those seem to be resolved. And, yes, there are large conversion costs, but they are largely internal to the publishers. BookSurge has waived the set-up fees for many -- if not most -- existing publishers in order to encourage the conversion.




September 25, 2008
In response to: Lessons From Amazon / BookSurge
Kate commented:

"My company, Strong Tower Publishing, prints POD through Lightning Source (LSI), whose customers are traditional publishers..."

if you're a publisher, your customers would be readers, not "traditional publishers"...or did I miss something?

I'll tell you what CreateSpace has done: taken self-publishing and POD printing back lower than it ever was in the eyes of reviewers and the public. The absolute garbage I find on Amazon from CS is amazing. I just read a book on design from them (actually, Amazon shoved it in my face) that had so many errors, my eyes started to bleed. The 'expert' whose only other previous book featured Comic Sans and images used from Microsoft against licensing restrictions, repeatedly called sans-serif fonts, san-serf fonts. Is spell check that difficult to operate?

That's only one example.

It's the first time in my life I wished it was possible to regulate self-publishing for quality.

It's going to hurt everyone.

If you thought the attitude towards POD printing methods and self-publishing was bad before, just wait a while.




February 7, 2009
In response to: Lessons From Amazon / BookSurge
JS commented:

Has anyone noticed that Amazon is now putting Sponsored Links on some author's book pages? The Sponsored Links, in some cases, are a link to search the author's address, telephone number and even names of family members by simply clicking on the link. The links have been posted without the author's permission and unless the author happens to check, without their knowledge. I know first hand as it was done on my book page. I asked them twice to remove it but they refused. I think it is a violation of the author's privacy.




April 22, 2009
In response to: Lessons From Amazon / BookSurge
J. Steve Miller commented:

I've published three books with Booksurge over the past year and have been ecstatic about both the service and the quality of the books they've delivered. One had been published previously by a traditional publisher and had gone out of print. They scanned it in (including the cover) and I frankly can't tell any difference from the original. I gave my latest book to Booksurge as a pdf and it is exceptional quality as well. My contacts there have been informed and responsive.





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