If Your Books Isn’t Shipping During the Quarantine, Here’s Why
Everyone knows that the current quarantine is throwing a wrench in the book publishing works, but what does that really mean?
Earlier this month an editor with a leading SF publisher explained on Facebook just what is happening behind the scenes.
First, you need to know that the vast majority of our business remains in hardcover and paperback books. Hard copies, physical objects. The second strongest sector has been audio books. Ebooks are a distant third.
Selling books is a very long and complicated supply chain. Ignore editorial — writers and editors can work at a distance and electronically. It really starts with the paper. Storing paper for the big presses takes an enormous amount of warehouse space, which costs money. Printers don’t store a lot — they rely on a "just in time" supply chain so that when a book is scheduled to go to press, the paper is delivered to the printer. Most of that paper is manufactured in China. Guess what isn’t coming from China? Anything, for the last three months. Some of it comes from Canada. Guess what the Trump administration put a big tariff on at the beginning of the year?
So, we don’t have adequate paper supplies. Then consider, big printing plants are not "essential businesses". There are only a couple printers in the US that can handle the book manufacturing business. One of them shut down last week. Covid-19. We started rescheduling books like mad to deal with that.
But supposing we had paper, and a printer and bindery, the books have to be shipped to the warehouse. Again, non-essential movement. The freight drivers moving books? Staying home, as they should. Not all of them. I hope they remain healthy, because dying to get the latest bestseller to the warehouse doesn’t seem quite right to me.
Now then, our warehouse. We have a gigantic facility in Virginia. Lots of people are working there, bless them, but it’s putting them at risk. There they are, filling orders, packing boxes, running invoices. Giving those boxes to the freight drivers who take the books to the bookstores and distributors. Again, truck drivers risking their lives to bring books to the bookstores.
But think again. The bookstores are closed. The distributors are closed . No place open to deliver the books to. Some bookstores are doing mail order business, bless them, but they aren’t ordering very many books from our warehouse. Amazon isn’t ordering very many, either — because they have (correctly) stopped shipping books and are using their reduced staff to ship medical supplies and food.
So the books that distributors and sellers ordered months ago are not being printed or shipped or sold. And because of that, they aren’t making any money. And because of THAT, they are not ordering any books for months from now. Plus they aren’t paying for the books they got from us last month and the month before. Cash flow has ground to a halt.
Now, audio books….turns out that people mostly, almost 100%, listen to audio books while they commute to work. Sales of audio books collapsed about three weeks ago. Fortunately, there isn’t a physical supply chain there, so theoretically that business can restart immediately upon resumption of commuting.
I understand the situation the industry is in. I don’t have a supply chain issue, but the shutdown of all public events has cost me all of my carefully laid plans to meet new clients at conferences and trade shows. I’ve had to pull out all the projects I didn’t have time or interest for before, and see which ones can still be implemented during a quarantine.
I would expect publishers are doing the same.