POD Publishers Outraged by Amazon's New Restrictions

"Some Print on Demand (POD) publishers are privately screaming 'Monopoly!' while others are seething with rage over startling phone conversations they're having with Amazon/BookSurge representatives. Why isn't anybody talking about it openly? Because they're afraid - very, very afraid..." That's how POD publisher Angela Hoy starts her recent post when she broke the story on Writers Weekly (check out the supplied links for POD industry reaction and commentary). Why? Because BookSurge, Amazon’s print-on-demand subsidiary, has told POD publishers that unless their titles are printed by BookSurge, the buy buttons on Amazon for their titles will be disabled. Apparently the buy buttons already have been disabled for some POD publishing houses.

Hoy is reporting that Amazon/BookSurge will be making money two ways on Amazon sales: first the fee for publishing the books and then 48% of the list price for each Amazon sale. While the initial catalog of books POD publishers can submit to Amazon/BookSurge is free, the contract states future books would cost $50 each to process (and the cost for individual authors to publish through BookSurge is considerably higher; the average publishing package cost is more than $1,000)

In Amazon Changes POD Tactics, Removes Velvet Gloves, Karria Krozser writes

It is not surprising that Amazon has told publishers that it’s their POD (print-on-demand) service or no sales through Amazon. It is surprising that, well, anyone is surprised. Did y’all think Amazon was buying Booksurge for the fun of it? What other outcome did you expect?

I am not joking. ... Amazon is amassing what is essentially a secret army. Amazon is a business, and like real businesses, engages in actions that further Amazon’s goals. Not yours…unless your goals dovetail with Amazon’s. ... Your content is being locked to their device. Your content is being locked to their service. They get to set the terms.

What's Happening Here: Amazon is using its eCommerce site's selling clout to generate more business for BookSurge. Acquired by Amazon in 2005, BookSurge has been trying somewhat unsuccessfully to cut into the market share of POD leader Lightning Source, the major provider of POD services for Amazon.com before this change. Provider no longer for Amazon? Apparently so. Lightning Source, by the way, is owned by the same firm that owns Ingram, the US wholesaler that fills those Amazon orders which do not go through an Amazon warehouse. Ouch!

I bet that larger POD publishers will use both BookSurge and Lightning Source for future titles to capture Amazon sales but will only convert BookSurge current titles that are popular. In general, expect higher prices for POD titles.

Publisher's Weekly reports that "an Amazon spokesperson explained that the new policy will allow the company to 'marry' books with other products that a customer might buy at Amazon." As in Kindle?

Endnote. Amazon does provide a sales option for POD publishers -- the Amazon's Advantage Program (which works on a consignment model) -- but it's pretty absurd. Besides having to pay Amazon 55% of a title's list price, POD publishers would have to send their books to Amazon for warehousing and shipment to customers. Wharehousing POD titles, is that how the publishing model is supposed to work? [JH]