If you're self-publishing via IngramSpark, understanding how their discount system works is key to expanding your reach... and possibly boosting your earnings.
WHAT IS THE WHOLESALE DISCOUNT AND WHY IT MATTERS?
When you publish a print book through IngramSpark and distribute it to retailers (bookstores, online retailers, and libraries), you're required to offer a wholesale discount. The discounts' purpose is to entice retailers and wholesalers to buy your book. They will absolutely NOT buy it at the regular retail price. They won't even buy it if the discount isn't steep enough.
This discount is the portion of your retail (list) price that goes to IngramSpark and retailers: • In the U.S., IngramSpark now requires a minimum discount of 40%. • The typical “trade” discount is 53–55%, which aligns with what most bookstores, wholesalers, and libraries expect. • You can set the discount anywhere in that range (40%–55%) depending on your goals.
ADVANTAGES OF A HIGHER DISCOUNT
A higher discount (e.g., 55%) increases your book's accessibility (attractiveness) to bookstores (especially physical ones), libraries, and wholesalers, making them more likely to stock it and potentially increasing your sales volume. This is a good thing.
-It allows for greater overall sales and visibility. The per-book earnings will be less, but increased sales will possibly make up for that.
-It allows you to compete with traditional publishers for shelf space. Without a wholesale discount, your book will likely be rejected by retailers, making it impossible to get into physical bookstores.
If your goal is to be in as many physical bookstores as possible, IngramSpark recommends the highest discount (currently 55%).
-It allows for special orders availability. Even if a bookstore doesn’t stock your book, a higher discount helps ensure it can be easily ordered and requested by customers and libraries.
-The higher sales volume will help increase your visibility. If you offer other books, products, or services, your book will help bring visitors to your website, increasing the potential for additional sales.
The Flip Side
-A lower discount will improve your earnings per book but might limit who’s willing to stock your book.
-If your goal is to sell online, directly to the reader, the lower discount may be more profitable. You may not sell as much, but you will make more money per sale.
My primary business is ghostwriting and rewriting children’s books, as well as coaching children’s authors. Because of this, my priority is to generate visibility and awareness for my business.
With this in mind, I set my nonfiction book to a 55% discount to reach more readers. I also kept the price of my books low, again, to generate sales.
This is not for the faint of heart, though, or someone who wants to make money selling their books.
On a $6.99 retail-priced ebook, I get $0.43. On a $14.95 retail-priced paperback ($6.73 wholesale), I get $1.85 per book.
Here’s the breakdown on the paperbacks:
Looking at the image above, the figures are based on four books, but the following figures are for only one book. The print book lists for $14.95 (wholesale discount price is $6.73). Next is the print charge of $4.66 and the Global Distribution Fee of $0.22, bringing the net earnings to $1.85.
Now, I could increase the book’s retail price and get a better royalty, but again, my purpose is visibility. Getting more sales through a higher discount and lower pricing means my book will get into the hands of more people.
Keep in mind that the book format and whether it has illustrations also get factored in. Hardcovers and books with jackets or illustrations are more expensive to produce.
HOW INGRAM & RETAILERS SHARE THAT DISCOUNT
Ingram takes a cut, and retailers take theirs. According to the IngramSpark guide, Ingram may retain roughly 10–15% of that discount as a distribution fee. Then there are the print fees and Global Distribution Fees.
Not all things are as they appear, though.
An interesting example from author Sara A. Noe at On The Cobblestone Road shows that IngramSpark takes a whopping 20% (half) of the 40% wholesale discount she set. Hmm...
UPDATING YOUR SETTINGS
Keep in mind that you can update your discount, pricing, and return settings on a weekly basis. This allows for trial and error.
SUMMING IT UP
Discounts in self-publishing through IngramSpark are more than just a number—they’re part of an overall business strategy. The wholesale discount determines how much money you actually earn per book and your sales potential.
It’s important to consider your goals when choosing a discount.
I’m a working children’s ghostwriter, rewriter, and coach. I can help turn your story into a book you’ll be proud to be the author of, one that’s publishable and marketable.
