Financial guide for the authors whose books are sold through our Extended Distribution offering
Our extended global distribution is mainly done through Ingram Sparks giving your book a broader, more “trade-like” distribution and better bookstore/library appeal. This way your titles will be orderable by bricks-and-mortar outlets like bookstores, wholesalers, and libraries rather than being tied mainly to Amazon.
IngramSpark pays the publisher the wholesale price less the cost of printing for each book sold through the global distribution network. The wholesale price is calculated from the list price and wholesale discount provided by the publisher.
A wholesale discount of 53% to 55%, with a ‘returnable’ status, generally allows for the widest availability through most retailers and bookstores, as it allows these retailers and bookstores to receive their standard trade discount when purchasing books from the wholesalers and resellers who are part of IngramSpark’s global distribution network. There is no guarantee that any given wholesaler, reseller, or retailer will purchase or make any book available for sale, no matter the wholesale discount.
The following is an example of how compensation earnings are calculated, in US pricing:
- $25.99 Retail/List Price of the book
- -55% Wholesale discount distribution partners receive
- $11.70 Wholesale price the distribution partners pay Ingram
- -$7.18 Print cost for a 6x9 (229x152mm) BW Interior paperback + 1.5% Global Distribution Fee
- $4.52 Total compensation earnings
- - $1.07 SelectArrow management fee [SelectArrow takes a 23.7% management fee for our continued work we do through our extended distribution channels.]
$3.45 Net author's royalty earnings
Depending on the country you are located in there may be additional VAT or GST charged on top of the Global Distribution Fee for print books.
**NOTE ABOUT WHOLESALE DISCOUNTS: As you can appreciate, we are not the only piece of the distribution chain in your title. Each company that is involved in the distribution chain may receive a portion of your wholesale discount. Offering a 53% to 55% wholesale discount in the US (including Canada) market and 48% to 55% in the UK, Europe, and Australia markets, allows bookstores to receive their normal trade discounts from distributors and wholesalers they buy books from.
Payments are made to the publisher, via selected payment method*, 90 days from the end of the month in which the sales are reported.
*PLEASE NOTE: Certain payment methods require minimum compensation thresholds to be met before payments are issued. If the publisher’s compensation is less than the minimum thresholds for the selected payment method in a month, publisher compensation will be paid in the next month that cumulative compensation is over the applicable threshold. Regardless of the chosen payment method or currency, Lightning Source may issue payments by check in USD at its sole discretion, a non-negotiable $25.00 check handling fee will be applied for every check written.
