Choosing the Right IngramSpark Wholesale Discount

If you’re distributing your book on IngramSpark, a wholesale discount is required. Your decision significantly impacts the potential for your book to land on a physical bookstore shelf. But what should you choose?

Look around and you’ll see that the recommended wholesale discount is 55%. But before setting it and forgetting it, it’s important to understand IngramSpark’s role in the publishing world, the significance of wholesale discounts, and the likelihood of your book finding its way into bookstores.

Questions Answered in “Choosing the Right IngramSpark Wholesale Discount”:

What Is IngramSpark?
What Is a Wholesale Discount?
Which IngramSpark Wholesale Discount is Right for Me?
Can I Just Use KDP’s Expanded Distribution?
Conclusion
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What Is IngramSpark?

IngramSpark is a valuable distribution platform that enables self-publishers to print and distribute their books globally. Through IngramSpark’s diverse distribution channels, authors can access more readers than ever before.

There are two main benefits to self-publishers who distribute through IngramSpark:

1. Books are made available to readers through online book listings like target.com, bn.com, and thousands of other retailers throughout the world.

2. Books are made available for bookstores, libraries, giftshops, and other retailers to order to stock in their stores.

Because IngramSpark is a distributor, the average reader doesn’t actually purchase books through IngramSpark itself; they purchase books through the various retailers in IngramSpark’s distribution network. This distribution network helps to bridge the gap between self-publishers and readers by making books accessible beyond just Amazon.

What Is a Wholesale Discount?

A wholesale discount is traditionally offered to bookstores to make books more attractive for them to order. The expected discount is typically between 53 and 55%.

Many independent authors feel that such a hefty discount is unfair and cuts into their royalties. This may seem steep, but keep in mind that bookstores need to make money on your book; they won’t order a book at its list price and sell it to their customers for that same price. Offering a wholesale discount ensures those retailers have adequate profit margins to order your book.

Historically, traditionally published books used offset printing. This meant lots of books were produced at once, which drastically reduced the print cost per book. Because of this lower per-unit cost, wholesale discounts typically hurt traditionally published authors less.

Unfortunately for self-publishers, books created using print-on-demand (POD) have a steeper print cost, so the wholesale discount cuts into a POD publisher’s margins a little more. This can significantly affect your royalties and even your minimum list price.

Which IngramSpark Wholesale Discount Is Right for Me?

After reviewing those numbers, you may think that skipping the discount entirely is the best way to maximize your royalties. Unfortunately, if you distribute your book through IngramSpark, you can’t opt out of offering a wholesale discount. As of August 2023, authors must choose between a 40 and 55% discount on IngramSpark.

Choosing a lower discount can lead to higher per-unit author profits—but bookstores and libraries are less likely to stock your book if they don’t receive the discount they expect.

This may sound unfair, but remember that both IngramSpark and the retailers in its network need to make money on these transactions. It’s a trade-off: if you want your book to be available through IngramSpark’s robust distribution channels, you’ll have to accept lower royalties.

(The company recently launched its E-Commerce Share and Sell program, which enables authors to sell directly to readers. Because there’s no retailer involved with this program, participating authors can skip the wholesale discount.)

When it comes to choosing your IngramSpark wholesale discount, there’s no single right answer for all publishers. Before you choose your discount, consider your priorities. Do you want to see your print book on physical shelves—and do you have a plan for making that happen? Or is your goal to reach individual readers online and maximize your earnings per sale? 

The good news is that you aren’t locked into your decision. Setting the lowest available wholesale discount will maximize your per-book royalties, but you can always change it later to make your book more attractive to retailers.

Can I Just Use KDP’s Expanded Distribution?

Distributing your book through KDP, sends your book out into the global Amazon marketplace. But KDP also offers an expanded distribution option so that your book is available to bookstores, libraries, and gift shops. Sound familiar?

For most authors, this isn’t the best idea. Libraries and bookstores typically won’t order books they can’t return, and with KDP expanded distribution, books cannot be returned. Even if you’re just using expanded distribution to sell your book to individual readers on major online platforms, IngramSpark is widely understood to have a better distribution network than KDP.

We recommend using KDP to sell books directly on the global Amazon marketplace and IngramSpark to distribute through standard channels. This means you’ll make higher royalties on your Amazon sales, but your book will be available to consumers on other major retailers’ websites. And if you can get bookstores interested in your book, they’ll be able to order copies through traditional channels.

Conclusion

Before setting your IngramSpark wholesale discount, you should consider your goals. Is wider bookstore visibility the highest priority, or is it more important to maximize your royalties for each sale?

Ultimately, it’s possible to strike a balance between visibility and earnings. Regardless of your goals, IngramSpark is a valuable tool that empowers independent authors to navigate the complex landscape of book distribution and sales.