Shelf Space vs. Sell Through
When you first become a published author there is much to learn about the ins and outs of this sometimes difficult to understand industry. There are some aspects that seem just plain backwards, particularly for those entering the industry from a business background. One of the hardest elements to come to grips with is the concept that a sale is not really a sale until it goes through two or three transactions. This makes calculating expected revenue difficult, to say the least. Add to that the returns factor (discussed here) and you are left with some confusing data to sort through.
If you’re working with a distributor, your distributor is going to sell your book to wholesalers and to retailers. (Learn the difference between wholesalers and distributors here.) Wholesalers play a very big role in all of this and it’s not uncommon for the majority of your books to first be sold to the myriad of wholesalers out there, big and small. Your distributor will report this is a sale to you and you will be paid for that sale (minus returns and reserves against future returns) but in the more explicit sense of the word, it’s not quite a sale yet. At this point, your book has been stocked in a wholesaler’s warehouse with the hopes that their customers (retailers and libraries) will purchase it from them.