Glossary · Selling & distribution
What is a wholesale discount for books?
Definition
Wholesale discount: A wholesale discount is the percentage off list price that a distributor and retailer keep, e.g. on IngramSpark, where you choose it per market.
When a bookstore buys a book from a distributor, it pays less than the list price and keeps the difference as its margin. That reduction is the wholesale discount, and it is shared between the distributor and the retailer. On IngramSpark, self-publishers choose the discount they offer for each market, within a range the platform allows (currently around 30% to 55% in many markets — check IngramSpark's current settings).
The discount directly affects your earnings. Your compensation on IngramSpark is roughly: list price minus the wholesale discount, minus the printing cost. A higher discount leaves you less per copy, sometimes very little on a short, low-priced book.
It also affects who will order your book. Physical bookstores generally expect a standard trade discount — 55% is often described as typical in the US — so they can make a margin after their costs. Offer much less and many shops will not stock the book, though online retailers will usually still list it. If your aim is mainly online sales, a lower discount may make sense; if you want bookstore placement, the standard discount and a returns policy are usually needed together.
Amazon KDP does not ask you to set a wholesale discount; its royalty rates already account for the store's share.