Taken from the Amazon Discussion Boards just now, their word on the kerfuffle with Hachette:
The Amazon Books team says:We are currently buying less (print) inventory and “safety stock” on titles from the publisher, Hachette, than we ordinarily do, and are no longer taking pre-orders on titles whose publication dates are in the future. Instead, customers can order new titles when their publication date arrives. For titles with no stock on hand, customers can still place an order at which time we order the inventory from Hachette — availability on those titles is dependent on how long it takes Hachette to fill the orders we place. Once the inventory arrives, we ship it to the customer promptly. These changes are related to the contract and terms between Hachette and Amazon.
At Amazon, we do business with more than 70,000 suppliers, including thousands of publishers. One of our important suppliers is Hachette, which is part of a $10 billion media conglomerate. Unfortunately, despite much work from both sides, we have been unable to reach mutually-acceptable agreement on terms. Hachette has operated in good faith and we admire the company and its executives. Nevertheless, the two companies have so far failed to find a solution. Even more unfortunate, though we remain hopeful and are working hard to come to a resolution as soon as possible, we are not optimistic that this will be resolved soon.
Negotiating with suppliers for equitable terms and making stocking and assortment decisions based on those terms is one of a bookseller’s, or any retailer’s, most important jobs. Suppliers get to decide the terms under which they are willing to sell to a retailer. It’s reciprocally the right of a retailer to determine whether the terms on offer are acceptable and to stock items accordingly. A retailer can feature a supplier’s items in its advertising and promotional circulars, “stack it high” in the front of the store, keep small quantities on hand in the back aisle, or not carry the item at all, and bookstores and other retailers do these every day. When we negotiate with suppliers, we are doing so on behalf of customers. Negotiating for acceptable terms is an essential business practice that is critical to keeping service and value high for customers in the medium and long term.
A word about proportion: this business interruption affects a small percentage of Amazon’s demand-weighted units. If you order 1,000 items from Amazon, 989 will be unaffected by this interruption. If you do need one of the affected titles quickly, we regret the inconvenience and encourage you to purchase a new or used version from one of our third-party sellers or from one of our competitors.
We also take seriously the impact it has when, however infrequently, such a business interruption affects authors. We’ve offered to Hachette to fund 50% of an author pool – to be allocated by Hachette – to mitigate the impact of this dispute on author royalties, if Hachette funds the other 50%. We did this with the publisher Macmillan some years ago. We hope Hachette takes us up on it.
This topic has generated a variety of coverage, presumably in part because the negotiation is with a book publisher instead of a supplier of a different type of product. Some of the coverage has expressed a relatively narrow point of view. Here is one post that offers a wider perspective.
5 thoughts on “Amazon Speaks!”
It’s definitely food for thought. It’s hard to make a clear cut call, simply because there are two sides to the story and both of them are being vocal about their side of it. I will say, at the least, that the Amazon statement is very classy.
Really, in the end, the one thing reading about this has made me realize is that I am awful glad that I am self-published.
You said it, brother. I feel so very bad for the authors caught in the middle, especially given all the other hassles they suffer through with traditional publishers (lower royalty rates, long lead times from shipping to earning). About the only thing they have going for them now is legitimacy and the editing/marketing machine that actually gets them into stores. But with Amazon, they lose a lot of that high ground. And now they suffer for Hachette’s recalcitrance.
I agree 100%. This is the first of five that Amazon has to negotiate with. If they cave now, there won’t be anything left by the time they’re done with the 5th…which is probably what Hachette and the other Big 5 publishers want. They’re seeing the inroads that indies are making and want to drive out everyone else.
David Gaughran’s post on this was VERY illuminating. These guys should be partnering with Amazon, not fighting to saddle them with petty terms.
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