IngramSpark Returns: A Small Author's Financial Reality Check (Weighing Visibility vs. Cost!)

The Alluring Promise of Wide Distribution

I wanted to share a bit of a behind-the-scenes look at the less glamorous side of self-publishing, specifically my recent experience with IngramSpark and their return policy. You know, the bit that doesn't usually make it into the "how to become a bestselling author" blog posts.

I was pretty stoked to see my workbook, Talk It Out, Work It Out, selling 452 books through one source. That felt like a win! Especially since I’d priced it with a super low profit of $1.28, hoping to get it into as many hands as possible.

The Trade-Off:  Allowing Returns for Retail Visibility

Now, when I initially set up my book on IngramSpark, I opted to allow returns. Like many new authors, I'd read that offering returns is often necessary to get your book stocked by many retailers. The advice out there suggests that bookstores are hesitant to carry non-returnable titles, as it puts all the risk on them. 

So, to maximize visibility and potential sales, I ticked that "yes, allow returns" box, choosing the "destroy" option as the lesser of two evils compared to the expensive return shipping ($3 per book, $20 for international orders).

The Unexpected Hit:  Returns and Their Real Cost

Fast forward a bit, and bam – 32 copies got returned. It didn't seem like a huge deal - roughly 7% of the order. Now, here's the kicker: I have absolutely no idea why they were returned. Could have been shipping damage, maybe a printing hiccup, or the buyer just decided they'd ordered too many? Who knows.

But the real sting came with the financial reality of those returns. As it turns out, when a book is returned, IngramSpark charges you back the wholesale cost of that book. In my case, with a $16.95 retail price and a 55% discount, that wholesale cost is $7.63 per book. For the 32 returned books, this chargeback totaled $244.16, directly reducing my net sales.

I'd read the terms about this (IngramSpark is very clear), but clearly the true financial impact didn't sink in until I saw those numbers. (You can read through the basics of the terms here: https://www.ingramspark.com/blog/making-your-book-returnable) So, if you are like me and need a practical application to make sense of it, here are the real numbers.

So, even though I initially allowed returns to increase my book's chances of being picked up by retailers, those returns have now cost me significantly. I’m out the $197.76 I paid to print them, and my net sales are down by $244.16.

Let’s do the math: I sold 452 books, but 32 came back, resulting in a $244.16 chargeback. After the initial wholesale discounts (55%) and a $76.84 distribution fee on the initial sales, my profit landed at a much less exciting $334.04. In effect, I paid roughly $15.46 for each returned (and destroyed) book.

And even though I quickly switched to "No Returns," IngramSpark's policy means I remain liable for returns from this initial order for 180 days. If 44 more are returned, which seems a true possibility from how retailers operate, I will begin paying IngramSpark.

This whole experience has forced me to seriously reconsider that initial advice about allowing returns. While it might open doors to more retailers, the financial risk for small-time authors can be substantial. I could charge more, but that likely would make the book by an unknown author prohibitively expensive.

Lesson learned (the hard way): While I initially allowed returns to hopefully boost visibility, the cost of these returns has been a tough pill to swallow.

So, fellow small-time authors, this is a critical point to consider. You have to weigh the potential for increased visibility with the very real financial risks associated with returns. Really dig into the fine print of those distribution agreements before you even finalize your book setup. Understand the return options and the financial implications – it's not just about lost sales, it's about the wholesale chargebacks and potential shipping costs. This decision about returns is a crucial balancing act in the self-publishing journey!

Have you grappled with the decision of whether or not to allow returns on IngramSpark? What factors did you consider, and how has it worked out for you? Share your experiences and insights in the comments below – we're all navigating these tricky waters together! 😉