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Distribution options for independent publishers 'limited', according to IPG report
Distribution options for independent publishers are "limited" while "space is at a premium" and "lots of publishers are on the move", according to a new report from the Independent Publishers Guild (IPG).
The IPG’s inaugural distribution report says “serious questions are being asked about distribution options for independent publishers” in 2024.
This follows what the report’s author, James Kellow, describes as “a challenging period for Marston Book Services” and “the move by Penguin Random House to transition its third-party distribution service, Grantham Book Services (GBS), to service PRH US’s European needs in 2025".
Kellow said in the report: “At the same time, print technology and inventory management methodology are making publishers think carefully about what they now require from distribution.”
He pointed out that “many alternatives to traditional print distribution” – including digital, print-on-demand and direct to consumer methods – are arguably shifting the service publishers require away from “distribution” towards “order fulfilment”.
The inaugural report comes after news reported in The Bookseller last month that United Independent Distributors (UID) group, which comprises Marston Book Services, Orca Book Services and Eurospan, had appointed insolvency advice firm Leonard Curtis as administrator.
UID and its subsidiary companies went into administration on 25th July this year, days after IPG (Independent Publishers Group USA) c.e.o. Joe Matthews told clients that IPG USA, which had acquired the group three years previously, had filed a notice of intent to appoint an administrator. The company was ’months away from profitability’ and had received ’several statutory demand letters from publishers and threats of winding up petitions’. The news came after six months of "failed" attempts to sell the business or partner with investors.
The report also addresses the move towards digital, with e-book only publishers flourishing, as technology "gives publishers other options for order fulfilment".
The report recommends that publishers think carefully about what kind of service they need as the market changes: "The more complex the distribution needs, the more expertise will be required. Every publisher needs to evaluate the opportunities and challenges that potential solutions offer and choose the approach that is most appropriate to their business."
The report also addressed the difference between wholesalers and traditional distributors, and whether every publisher needs a distributor, or whether it can rely on a wholesaler. If publishers believe they can "generate sufficient demand for titles at retailers and online", then it is a viable option. However, the IPG has warned that they might not have arrangements with every customer or channel, and any list would be competing with the full range the wholesaler is carrying.
The report offered an overview of the distribution industry in the UK, changes that have been seen in recent months – especially post-Grantham and Marston – including the options available to independent publishers, pricing and service levels and best practice.
The IPG Autumn Conference will be held on Tuesday, 17th September 2024 and Kellow will be chairing the distribution session – Solving Distribution Challenges – at 4pm. The session will address the challenging state of distribution after "several upheavals over the past 12 months – at a time when there are more books being published than ever before".
Ingram’s David Taylor will review the big changes and what’s driving them, and will suggest some strategies and tactics for publishers to consider. Kellow will add thoughts on publishers’ options and will be introducing the IPG’s report.
For more information about the IPG’s report, visit their website here.
