An ABA CEO Update on Several Major Initiatives

Dear Booksellers,

As BTW was about to be sent to you this afternoon, we learned of Judge Cote’s ruling regarding the settlement proceedings in the Department of Justice agency pricing case. There’s a report regarding her decision [1] in today’s issue.

To say the least, we are colossally disappointed that the judge failed to understand how consumers will be negatively impacted by a decision that does not take into account the realities of the book business in 2012. ABA will consult with our counsel and other affected parties to determine if there is any further action we can take.

In September and October, ABA will be at all eight upcoming fall trade shows, and we certainly hope to see you there. We will be presenting education sessions at the shows — including a session about the new e-book solution — and will be on the trade floor in our booth. Please, do come by to catch up, and to share your thoughts, questions, and suggestions. We look forward to seeing you. 

I hope you have already read our big announcement [2] from last week about the agreement between ABA and Kobo for an e-book solution for the holiday season and beyond.

This week, we are extremely pleased to be announcing that Ingram Content Group will be the exclusive distributor of Kobo’s eReaders to indie bookstores [3]. And, in addition, today’s issue of Bookselling This Week also has important news about Kobo’s new line of devices [4], which will be distributed by Ingram.

Ingram is the exclusive device wholesaler for ABA member stores, and device purchases will fall under its terms and conditions. Ingram has taken major steps to create a distribution program for Kobo eReaders that is uniquely suited to the needs of indie booksellers, and that offers the options and terms that will make it both easy and advantageous for ABA member stores to help meet the needs of their customers.

We completely understand that the majority of our members’ sales will continue to be in print books. But it’s clear, too, that we must provide customers with an easy and convenient way to purchase their next great read from us digitally when they want to. If we don’t, it will become increasingly difficult to prevent an erosion in our customer base, often starting with our most committed readers and book buyers.

Based on extensive member feedback, it was clear that a key component of the new e-book solution would have to include first-class e-reading devices. With Ingram handling the distribution of Kobo’s eReaders to indies, we believe that bookstores will have a very low-risk opportunity to participate in this program, knowing that a distributor with such a proven record and in-depth knowledge of the needs of independent stores is providing this critical service. We are extremely grateful that Ingram has committed their expertise and resources to this project.

As part of the ABA/Kobo agreement, bookstores ordering from Ingram will be able to take part in a launch program that creates a very low risk opportunity to feature Kobo devices during the critical holiday season. The special launch incentive created by Kobo, Ingram, and ABA for ABA member bookstores includes free displays and demo devices, a cash bonus for participating, rebates for sell-through, and product returnability.

For more information about the Ingram distribution program of Kobo eReaders, bookstores should contact their Ingram sales representative or Ingram Customer Care at 1-800-931-8000 [5] or customerservice@ingramcontent.com [6]. Bookstores that are not currently Ingram customers should contact Ingram at newaccounts@ingramcontent.com [7] or at 1-800-937-0152.

Here, also, is an FAQ about the ABA/Kobo program [8] for ABA members, which has been updated with new information this week.

There’s additional big news in BTW this week.

Beginning on Saturday, November 24, in conjunction with Small Business Saturday [9], ABA member bookstores will have the opportunity to participate in a unique in-store promotion — “Thanks for Shopping Indie.”  The word “unique” can be overused, but this is one time when it could not be more apt. The Thanks for Shopping Indie promotion is the first multi-publisher promotion of its kind exclusively for ABA member bookstores, and it will give booksellers the opportunity to offer  an “extra” to customers on a broad range of 2012 Indie Next List titles.

Here is an introduction of the program. [10]

ABA member bookstores have told us repeatedly that working with publishers to fashion new business models and templates for the success of bricks-and-mortar stores —  which provide essential and unique ways for customers to discover new titles and which promote book sales across all channels —  should be one of ABA’s primary objectives. This special promotion embodies that goal, and we believe that scheduling it in conjunction with Small Business Saturday will help maximize its success.

As we clearly saw last year, the work AmEx did in promoting Small Business Saturday focused national attention on shopping in locally owned, independent businesses. An estimated 103 million people participated in Small Business Saturday in its second year, and sales recorded on American Express cards on that day were also up 23 percent from the same Saturday in 2010. Additionally, awareness of the event by the public rose to 65 percent compared to 37 percent in 2010. Among the shoppers was President Barack Obama, who took his daughters to Kramerbooks in Washington, D.C., in support of Small Business Saturday.

But, importantly, this promotion will succeed only if a broad spectrum of the membership participates. I can’t stress enough how important it is that as many indie bookstores as possible take part in the Thanks for Shopping Indie promotion. Every day, you see the results of our passion and insight as your customers listen to your suggestions and take the titles you hand-sell to the cashwrap. But the scope and clear indie focus of this promotion can demonstrate much more fully the critical importance of bricks-and-mortar independent bookstores.

As you review the terms of this promotion and the titles included —  all chosen by you for the Indie Next List —  it will be clear just what a remarkable opportunity this is. I strongly urge you to participate, for the benefit of your store, and for the entire indie channel. More information about the Thanks for Shopping Indie promotion is available here [11]and you can also contact your ABA Member Relationship Manager [12].

Finally, there is still time to register for the upcoming IndieCommerce Institute, set for Thursday, September 13, and for the Events Specialty Institute, which will bring booksellers from around the country to Minneapolis, Minnesota, for a full-day of education on Wednesday, October 3, 2012. This week’s BTW features an announcement about the event’s publisher sponsors and authors and senior publishing publicity executives who will be taking part. [13]  Education remains a fundamental goal of ABA, and these one-day institutes are focused on topics that member bookstores have told us are key topics. There are still a few slots available, and it would be great to see you there!

Sincerely,

Oren Teicher [14]
CEO, American Booksellers Association