Understanding Return Policies in Bookstores

For many authors, the purchase of their book at a local bookstore signifies that they have achieved success. However, most new writers do not understand there is one big caveat for selling books through retail stores: they can usually return them. The return policies that bookstores have in place for books or other products sold at retail need to be understood by all within the book publishing cycle (especially by authors!) To better protect their sales revenue and to allow for better use of their print runs. 

In this article we will detail how the return systems in bookstores operate, why return policies exist, and how these policies impact the lives of authors and publishers in the real world of publishing. 

What Are Return Policies in Bookstores? 

The return policies of bookstores allow for the books that do not sell, to be returned to the publisher or distributor for a refund or credit. These return systems have been functioning for the last fifty (50) years and are an expected feature of traditional books publishing.  

Returns retailers lower the risk that they have; they will not be able to sell that title in their stores. Returns are a cost that publishers bear to sell books through retail locations. 

Why Do Bookstores Allow Returns? 

Due to limited shelf space and unknown product demand, bookstores rely heavily on returns for flexibility. 

Here are some of reasons why books get returned: 

-> Too many copies in stock 

-> Customer demand is low 

-> The sales season has passed 

-> Books are damaged 

-> New editions take the place of old books 

If bookstores do not have return options, they may not stock books by new or less well-known authors.  

Author’s Should Understand How Bookstore Return Policies Work 

If authors understand how bookstores return to work, it will prevent costly surprises. 

How Does the Return Process Work? 

-> First, bookstores order copies through a distributor. 

-> Any copies that don’t sell are returned to the distributor. 

-> The publisher or distributor will issue the books with credit to the store. 

-> Returned books can then be re-established in inventory, sold at a discount, or destroyed. 

Usually, authors do not get paid on returned copies. 

Book Returns in Publishing: Who Pays the Price? 

Different stakeholders' experiences return differently. 

Publishers 

-> Lost on print and ship costs 

-> Paid for handling and restocking costs 

-> Lost inventory of unsold books 

Authors 

-> Royalties may be reversed 

-> Fluctuations in earnings are unpredictable 

-> Earnings become difficult to forecast 

This is why book returns in publishing are often a shock for first-time authors. 

Retail Book Returns and Royalty Calculations 

Most publishing contracts define royalties based on net sales, not shipped copies. 

Royalty calculations after returns 

-> After the return calculation, royalties will be paid where appropriate by the publisher on new and returned books. 

-> Some publishers will hold against future return costs for a “reserve against returns” in the form of delayed payments. 

-> Authors need to be aware of this clause prior to signing any publishing agreements. 

Common Types of Bookstore Returns 

Each category of return is treated differently (in addition to all being returned). 

Return Categories 

1. Reseller returns – in resalable condition 

2. Damaged returns – torn and weathered copies (damaged) 

3. Stripped cover – returned with the cover (normally as proof) 

Each category above will impact the cost of returns differently. 

The Author Impact of Book Returns 

Authors may be demoralized by the number of returns, but they do not represent failure 

Actual Effects on Authors 

-> Lower monthly royalty payments 

-> Inconsistent sales data 

-> Confusion over how many actual readers exist 

Conversely, most veteran authors plan returns and see them as a natural part of the retail system. 

How Publishers Minimize Return Losses 

Most professional publishers use different methods to manage risk of returns 

Smart Publishing Practices 

-> Conservative printing quantities 

-> Print-On-Demand (POD) for slow selling titles 

-> Sales forecasting process that is more trend-following 

-> Better analysis of demand from bookstores 

These processes help reduce the amount of exposure from returns to both publishers and writers. 

Returns vs Print-on-Demand (POD) 

POD has changed the way returns are handled. 

POD Advantages 

-> Lower risk due to less inventory 

-> Fewer copies of books that were not sold 

-> Lower financial risk due to not having to pay for a greater quantity of printed copies. 

Many bookstores continue to prefer books printed in the traditional manner when placing books in physical store locations. 

What Authors Should Ask Before Distribution 

Prior to committing to distribution through a bookstore, authors should get answers to the following questions: 

-> Are books returnable in full? 

-> Will returns be deducted from the author's royalty checks by the distributor, the bookstore or some combination thereof? 

-> Will the distributor hold back a certain amount of royalties as a reserve to cover any possible future returns? 

-> What will happen to damaged books? 

These questions will help authors avoid any surprises regarding returns.  

Are Returns from Bookstores Bad? 

Not necessarily. Returning means the bookseller is willing to keep your book on the shelf. 

Positive Aspects of Returns: 

-> More Distribution 

-> More Exposure 

-> More Opportunities for Discovery 

Many authors who are now bestsellers experienced return issues early in their careers. 

Final Thoughts 

Understanding bookstore return policies is extremely important for authors who wish to navigate the professional world of publishing. Returns and how they affect authors can vary greatly. However, retail book returns should never be viewed as a loss for the author as they are considered an ordinary part of the publishing process. 

Authors who are knowledgeable about how books return to work in publishing, are careful about tracking their royalties, and are dealing with reputable and transparent publishers are best positioned for future success. 

Publishing is not only about selling books; it also involves understanding what goes into creating a successful publishing business.