Small Publishers hit by Amazon cut

Despite an increase in sales of 19% in the last quarter of 2008, Amazon is reported to be placing pressure on small book publishers to to cut their wholesale prices.

Amazon is reported to be seeking 2% off the list price of books from suppliers that use its Amazon Advantage system. The online retailer already receives a discount of 40-60% from book publishers. Those declining to offer the extra discount will face longer payment terms. 

 

Small book pubishers are reported to be angry at the news. saying 'it is just another hit on our margins' at a really tough time economically.

Novena Consulting is aware of the pressure on small publishers and has helped many of them to create their own direct sales channel online, allowing more control over their online sales and recovering some of the margin that Amazon and others demand. The result is a more profitable sales channel and an unprecedented opportunity to create a direct relationship readers.