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Amazon Tightens Noose on Print-On-Demand Publishers; Insists They Use Company’s Own Service

Amazon.com (NSDQ: AMZN), which has brushed with monopolistic tendencies before, is doing just that, this time in the print-on-demand business, where it is asking such publishers that they will have to use its on-demand printing facilities if they want their books directly sold on Amazon’s website. POD is a growing business online, especially in the academic books market, where it has been embraced by more than half of the country’s university presses, this WSJ story says.

Amazon acquired a POD tech business BookSurge in 2005. Rivals in the business include Lightning Source, a unit of Ingram. Here’s how an Amazon spokesperson sees it: “What we’re looking to do is have a print-on-demand business that better serves our customers and authors. When we work with some other publishers, it’s not truly a print-on-demand business.”

The story was first reported on WritersWeekly and other trade sites..this story explains the issue in detail.

Mar 28, 2008 1:24 AM ET

Posted In: Media & Publishing, Books, Companies, Amazon.com

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Comments (4)

Mar 31, 2008 11:36 PM

It never ceases to amaze me why some companies put some things in writing…especially when the world is already reading and dissecting what they’re doing.

  I had several issues with their official statement today, but one glaring problem is this.

  They said, “If the POD printing machines reside inside our own fulfillment centers, we can more quickly ship the POD book to customers—including in those cases where the POD book needs to be married together with another item…If the POD item were to be printed at a third party, we’d have to wait for it to be transhipped to our fulfillment center before it could be married together with the inventoried item.”

  First, notice they said “IF” the machines reside in their fulfillment CENTERS (plural). Hmm… Let’s look at that more closely.

  According to Wikipedia, Amazon has 10 distribution centers in North America alone; and 14 more abroad.

  Do they have POD printing machines at those 24 distribution centers yet? Or even just the 10 in North America? Or even more than just one?

  Are they currently printing print-on-demand books in each of those centers and able to “marry” those books with the other products they’re shipping?

  I don’t think so. So, they’re “save money/time by packaging POD books with other products” rationale appears to have glaring holes in it.

  If Amazon can’t currently print POD books at all its distribution warehouses, why are they implying they can in their statement today, and why are they telling POD publishers to sign that contract RIGHT NOW?

  Also, IF they are not currently printing the books at all their CENTERS, there is no way they can beat Lightning Source’s current ability to print and ship those books in 24 hours.

  -Angela Hoy
  WritersWeekly.com
  Booklocker.com

Angela Hoy

Apr 1, 2008 5:48 PM

As an author, I am directly affected by this. Strangely, the worst part does not seem to be making the news at all. Amazon is also demanding a 50% discount off of the retail price of books. This will significantly increase what readers have to pay for a book.

In fact, the author will get less money; the publisher will get less money; the consumer will PAY more money—and Amazon.com gets MORE money. In the end, Amazon.com is the only party to this arrogance that is NOT harmed.

And another problem is, once Amazon dominates the POD printing business, other, smaller printing businesses will start to go out of business. So how long before the cost of getting a book printed goes through the roof? That will add yet more to the price a reader must pay to buy a book.

What would it take to get a boycott of Amazon going? And I’m not just talking about their books. I mean their entire web site.

Tony McGuire

Sep 4, 2008 11:22 AM

I am an educator who published with Book Surge/Amazon POD services.  The delightful and professional book I authored with 2 young girls LEARNING TO HAVE FUN WITH YOUR HORSE, WITHOUT GETTING HURT is full of rich content and 50 color photos.  BS/A has over priced this book so that they are making all the profit.  My purchase price does not include any bulk purchasing discounts, or any better pricing over other book sellers.  If book stores want to sell my book, there is no wholesale discount from the retail price, and they want to make at least 20% profit themselves.  So, if they want to buy a book(s) from me I can end up with $1.30 and the book store gets $5.20.  My book is listed with online booksellers but not for sale unless they order (FROM WHOM???) copies to have on hand.  One online book seller has my book for sale at 2X the listed retail price.

BOOK SURGE/AMAZON IS A MONOPOLIZING SCAM AND THE AGENTS LIE ABOUT THE ULTIMATE SUPPOSED BENEFITS YOU RECEIVE.  I have emailed my account manager and agent yesterday with my disgust over this.  SOMETHING MUST BE DONE TO STOP IT!

Dr. Loretha Page

Feb 10, 2009 1:50 PM

The subject of Book Surge/Amazon’s apparent attempt to dominate the POD market segment seems to have died down.

Has anything changed?

Bill Rogers

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