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Amazon Out of Stock Issues and the Pros and Cons of Publishing with CreateSpace, IngramSpark and Lightning SourceRecently there has been much discussion in the publishing community around whether authors should publish their books with both IngramSpark and Amazon’s Kindle Direct Publishing (KDP) platform (formerly CreateSpace) or choose just one publishing platform. Below we break down some of the pros and cons you should know about.

KDP is an Amazon-owned company, which gives it some competitive advantages when it comes to book sales through Amazon. However, KDP also brings some business practices that are viewed as less-than-favorable by many independent authors and publishers.

OUT OF STOCK ISSUES ON AMAZON

For the past couple of years, Amazon has been marking some book titles out of stock when they aren’t. (They can’t really be out of stock when they’re printed on demand!) Speculation has been growing as to what is actually happening here. Some say it’s an algorithm issue with Amazon’s stocking system, but how can the world’s largest online retailer have an unresolved algorithm issue when they have some of the best technology in the world?

Many of us in the publishing industry see it as a monopolistic practice and an under-handed way for Amazon to force authors into publishing on the KDP platofrm. Essentially, if you publish anywhere other than KDP, your books may show out of stock during a book launch, promotion, or for no other apparent reason. We’ve seen it over and over again. This isn’t a new issue, but it seems to be picking up steam. See this post from Writers Weekly.

One workaround some authors are using is to publish books with BOTH IngramSpark and KDP. To do this, you would use KDP to distribute to Amazon only and use IngramSpark’s massive distribution network to distribute everywhere else. (IngramSpark is owned by Ingram, the world’s largest supplier of books to bookstores.) This prevents the out of stock/shipping delay issues on Amazon while allowing you to take advantage of the excellent distribution to other retail channels available through Ingram.

Also, keep in mind that major bookstores don’t want anything to do with Amazon/KDP-produced books, so Amazon’s “distribution” may actually be rather limited. IngramSpark is much better option if you want your book available to top retailers.

It’s unfortunate that Amazon is forcing some authors and publishers to take this path. If we want these business practices to change, we need to speak up. Forcing anyone to use a service is a terrible business practice.

out of stock issues on amazon

We experienced this issue first-hand when this newly published book, distributed through IngramSpark, showed out of stock the day it was released. It stayed out of stock for WEEKS until we were forced to list it for sale directly through KDP.

ADDITIONAL PROS AND CONS

Following are some pros and cons you should know when planning to publish your books with any of these firms.

  • EXPANDED DISTRIBUTION: Because IngramSpark is a sister organization of Ingram, the largest supplier of books to bookstores, it offers excellent distribution to the bookstore market, libraries and beyond. KDP offers its own “expanded distribution,” but it doesn’t match Ingram’s reach.
  • RETAILER DISCOUNTS: You can set your own retailer discount with IngramSpark, which is important if you plan to distribute your books to the retail market. Most brick and mortar bookstores require at least 40% discount off the retail price, which you cannot set with KDP. In fact, KDP only offers retailers 25% off, which most brick and mortar stores won’t touch, thus limiting your ability to have bookstores carry your books.
  • WHOLESALE DISCOUNTS: Amazon wants publishers to provide 55% off retail, but you don’t necessarily have to comply with this. I have always set my discounts at 40% through IngramSpark, and Amazon still lists the books and even discounts them. But if you publish with KDP, your retail discount will automatically be set to 55%.

Setting your retail discount with IngramSpark at a minimum of 30% will make your book available to Amazon and other retailers, though it won’t guarantee they will list the title. Setting your discount at 53% will ensure that a 40% discount passes through to retailers, after Ingram takes its piece of the pie. If brick and mortar retailers are a target for you, set your discount at 53%, but if you’re focusing on online sales, you can set it lower. Ultimately your discount is up to you, but we recommend somewhere between 40% to 53%.

  • BOOK ROYALTIES: Depending on how you set your retailer discount, you can potentially earn more book royalties when publishing through IngramSpark. Check out this royalty comparison done by Carla King at Author Friendly. But this post on the ALLi site shows that KDP wins the per-book price war, so much of it depends on how discounts are set and quantity breaks.
  • ROYALTIES FROM RETAIL DISTRIBUTION: KDP significantly lowers the amount of profit earned by authors when sold via distribution to other retailers, while IngramSpark authors earn higher royalty payments. See Dave Chesson’s comparison here.
  • RETURNABLE BOOKS AND RETAILERS: You can accept returns on IngramSpark titles, which makes your book more attractive to retailers. No bookstore wants to order non-returnable books, so if bookstores are a primary target for you,  IngramSpark brings a big advantage.
  • AMAZON PRE-SALES: IngramSpark allows authors/publishers to setup pre-sales for print books on Amazon, weeks or even months in advance of your book’s official release date. Note that you have to have your book files print-ready in order to do this. Oddly, KDP doesn’t allow pre-sales on print books; these are only allowed on the Kindle edition of the book.

When you set up a pre–sale, you can set a release date in the future and begin pre-promotion efforts. Generating pre-sales, which is when buyers commit to purchase the book when it goes on sales, means that all of those pre-orders are billed on the day your book is officially released—and all those sales on release day count toward your ranking on Amazon bestseller lists.

  • HARDCOVER PRINTING: IngramSpark offers hardcover printing options, while KDP does not.
  • BULK PRINTING DISCOUNTS: KDP does not compete with the high-volume print discounts offered by IngramSpark, so if you plan to order your books in quantities of 500+, pricing will be better with IngramSpark.
  • COLOR PRINTING: If your book interior is printed in color, you’ll get far better printing prices from IngramSpark, as much as 50% less than KDP. IngramSpark also offers low-cost and premium color printing options.
  • SETUP FEES: IngramSpark both charges fees of around $39 for new titles, while KDP does not charge a fee. IngramSpark does refund the setup fee when an order for 50 copies is placed within 60 days of setup so essentially, this is free as well. However, when you compare royalties earned, those fees can often be earned back quickly when book sales are generated. (Also note that members of the Nonfiction Authors Association get free title setup with IngramSpark. Check your member discounts page for details.)
  • REPUTATION: KDP has a long-standing reputation problem within the publishing industry. Barnes and Noble and many indie booksellers don’t want to stock KDP titles. Check out this post (among many others, which you can find with a quick Google search) by authors who’ve experienced this issue firsthand. It makes sense. Why would direct competitors want to stock books produced by an Amazon company?
  • THIRD PARTY RESELLERS GETTING ADVANTAGES ON AMAZON: Amazon has also recently changed how books are sold through its marketplace, allowing third party retailers top sales position. Here’s an article published in the New York Times about this issue, which shows Amazon is creating some unfair advantages for third party sellers, while upsetting publishers in the process.
  • ISBNs: KDP offers free ISBNs (International Standard Book Number), which IngramSpark does not. However, one important tip, no matter which publishing service you use, is that you should acquire your own ISBN, which is required for publishing all books. ISBNs are linked to the publisher where they originated, so you should absolutely avoid using one issued by KDP or any other free source since that associates your book with the publisher for all eternity. Instead, purchase your own block of ISBNs and establish your own publishing company name—something that sounds like a legitimate publishing firm. U.S. authors can purchase ISBNs from Bowkers.
  • PRINTING: Oddly enough, KDP contracts some of its book printing to Ingram. It’s an unusual relationship, to say the least.

As CEO of the Nonfiction Authors Association, my personal opinion is that IngramSpark is a better choice for publishing versus KDP, largely due to the unfair practices Amazon is using to give KDP books an advantage on the site, but also because IngramSpark offers higher quality printing, better options for trim sizes, hardcover and color printing, and offer excellent expanded distribution services.

More importantly, I feel that authors should speak out about these practices by KDP. Amazon is pushing its weight around and essentially forcing authors and publishers into publishing on KDP—or else face the consequences. I suspect we’ll see some lawsuits arise soon as a result of these issues.

I will also add that because of these practices shared here, the Nonfiction Authors Association actively pursued a relationship with IngramSpark. We wanted to bring our members special discounts on title setup because we believe in what IngramSpark and Lightning Source stand for. Authority, VIP, and Thought Leader members of the Nonfiction Authors Association receive free title setup and file replacement with IngramSpark. Visit your member dashboard for details.

Not a member yet? Join us here!

This post reflects the personal opinions of its author, Stephanie Chandler, CEO of the Nonfiction Authors Association and was not sponsored in any way by any vendor or outside interest. We share this information in an effort to inform our nonfiction author community.

Have you been impacted by out of stock issues?

What are your experiences publishing with these vendors?

Please share in the comments.

This post was updated: November 2019

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