Just recently, BookBaby changed their ebook conversion and ebook distribution policy. Since it began in 2011, BookBaby has offered numerous plans for authors, which included no charge for distribution. Like most distribution companies, BookBaby received it’s commission on sales made. Well, these free-distribution plans are gone and authors now pay a flat fee ($299) for ebook conversion and distribution, retaining 100% of net sales. This means BookBaby now charges all their fees upfront.
This change indicates BookBaby was making very little money from commissions. In other words, authors using their services were selling very few, if any, books. This revelation started me thinking about other distribution outlets, such as Smashwords or even the giant, Amazon. What changes are on the horizon for their loss-leaders?
Authors are NOT in Control.
Amazon is the leading ebookstore that so far, has an open-door policy for indie authors. It has been so open, many authors think they are the decision makers—but they are not. Like any business Amazon, and Amazon alone decides what goes on their shelves. Not the author, not the publisher. And Amazon can remove any product at any time for any reason. Their goal is to make money and to do that, you need customers—a lot of customers. Without profits a business fails (even non-profit businesses rely on an influx of cash).
Authors are not customers.
Independent authors and publishers are like merchandisers that supply a product to a retail store. Like Frito-Lay, self-publishing authors stock shelves with a variety of products. These products are evaluated based on essentially one requirement—are they making a profit? Period. If the answer is no, then the product has a very limited lifespan. Unsaleable products are unceremoniously removed from store shelves and replaced with products that (hopefully) will sell (or else their prices are slashed dramatically just to get them out of the store). Stores don’t carry products that do not sell. But unlike the “salty-snack” giant, if a product has poor sales, Amazon doesn’t remove it from their inventory. At least not yet.
Instead, Amazon has an Open Door Policy — allowing anyone to place products in their store—essentially giving the self-publishing author “free” virtual bookshelf space. The bookstore “warehouses” the product as well as delivers it when it is purchased. (I say free shelf space because there is little if any outlay to the author to publish their book, while there is a cost to Amazon to maintain their website.)
Pleasing the Customer
Early on in the ebook revolution, Amazon enacted a policy charging authors a small fee for every ebook sold and downloaded that had a file size larger than 1MB—mainly targeting graphic-heavy ebooks such as graphic novels and children’s books. But what of the millions of other books? The ones below the 1MB limit? The ones that are taking “free” space in the virtual world but never show a profit? Is there a soon-to-be-enacted hidden cost or limited-lifespan in their future?
Virtual bookshelves may be endless receptacles able to house millions of books, but there is a cost for overcrowding. Many books will never generate enough sales, if any, to be “shelf-worthy.” So what’s to prevent a bookstore from “clearing out the clutter”? After all, an ebook that doesn’t sell, is taking away profits, even if it is only minimal data storage.
And do not mistake Amazon’s free resources as a friendly gesture toward the author. They aren’t. Amazon must realize the majority of ebooks published will make little if any profit, so they target desperate authors to utilize their “free promotional tools” as a means not to boost sales but to boost traffic. These tools come with a hefty price tag for the author—exclusivity.
Amazon’s focus of generosity is for the customer NOT the author. It is no surprise, then, when reader deals, such as Kindle Unlimited (great for the voracious reader, but perhaps not so for the author) ventured onto the scene, they exacted an even greater toll on authors in the form of diminished sales it also seemingly devalues the authors work. A book that is forever on the “sale” list? Their exclusivity program is simply a way to push ebooks out the virtual doors and become the one-stop-shop for enything ebook. And the heartache doesn’t stop there. Promotion-reduced royalties are non-payable until at least 10% of the ebook is read. So greater downloads through Kindle Unlimited results in even fewer dollars in the authors’ pocket.
The Open-door policy isn’t dead…it never really existed. Sure, you still have the freedom to publish your book and yes, you decide critical elements such as pricing and promotions, but are authors really in control? Freedom comes with a price. Amazon is slowly chipping away at the meager incomes authors enjoyed…and to what end? Perhaps the loss of a luxury we have enjoyed for many years—an open (free) forum to publish with a major outlet. I’m just saying…
AUTHOR NOTE:
Don’t get me wrong. I love Amazon. As the largest distributor of ebooks, it still is a requirement for any author wanting to gain targeted traffic and sales. I am simply confused as to how they are trying to help maintain quality authors. Kindle Unlimited is one area that is a puzzle. Since it’s unveiling, my sales have plummeted, and I’ve heard the same complaints from many other authors. It appears the only ones benefiting from KU are authors who either have multiple books (like in a series) and/or have combined KU with other creative marketing strategies or they simply lacked any significant sales in the first place. It just proves you don’t put all your eggs in one basket. You never know when policies will change and you’ll be up the virtual creek without a virtual paddle.
