How Bookstores Can Survive? Drop the Consignment Model

Tuesday, August 4th, 2009 | Posted by: Andrew Kent

One of the premises behind print-on-demand publishing (and largely working for Amazon.com) is that when a book is ordered, it is purchased — there is no longer a consignment model of returnable inventory.

Bruce Batchelor, a POD expert from Canada, has posted this very interesting video analysis of the flaws in the consignment model, illustrating how, in Canada alone, bookstores could save $330 million just by going to the more traditional retail model of firm sales. He projects savings in the US would be 10x this figure or better.

ReadWriteWeb also has a 3-part series on the destruction of the book industry, Part 3 of which featured links to Batchelor’s information. It’s all worth a read if you’re interested in the future of books, the role of authors, how POD and independent publishing will factor in, etc.