Consignment is where an author gives books to a store to sell and is paid after they're sold. Most stores work on a 60/40 split of the recommended retail price (RRP), with 60% going to the author and the store keeps 40%.
It's usually the financial responsibility of the author to deliver the books and to pick up remaining books at the end of the agreed term.
If you're an author, here are some things you should ask for and are entitled to:
- a contract that must be signed by both parties.
- the contract should have the store owners name, trading name, tax number (abn for aus), address, and contact details (phone or email).
- the contract should have an AI policy included.
- books should be returned in good condition otherwise an invoice for damages could be issued by the author.
- you are within your right to ask for references from the store of other authors they've consigned with.
- try to stick to stores within driving distance to minimise costs.
- if posting, the most economical way is to send direct from printer (amazon or ingram) and post bookplates (if requested) in an envelope.
- if setting the RRP, include the postage costs to make sure you're being paid what you're due. Example: 10 books on consignment at $16 wholesale plus $20 to post 10 books means your wholesale is actually $18 and RRP is then $30.
- ask if you need to check in or if they'll tell you when books are sold and agree to a time frame. (We have a dashboard authors can check).
- contract should also state payment terms and time frames. Ask if you need to invoice or if they'll send the payment through with a sales report if it's not clear.
- if payments are not made on time, debt collectors can (and should) be initiated.
The most important part for both parties is open and consistent communication. There's nothing worse than being ghosted by a bookstore who holds your stock. Utilise your rights and don't be afraid to say no to terms and conditions you don't agree with.
