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Independent publishers have almost unanimously opted to receive later payment of invoices by Amazon.co.uk, rather than give away an extra 2% discount, an IPG survey has revealed. More than 100 members of the Independent Publishers Guild responded to the survey, which was conducted online over the past few weeks.
Nearly two-thirds of respondents said they used the Amazon Advantage scheme, but just two publishers have signed up to receive "early payment", which is due 15 days after the end of the month in which a purchase is made. More than 40 publishers have selected to be paid on the later "standard" option of 60 days. The remainder said they were still undecided over the matter, although the deadline passed on 1st April.
Andrew Johnston, m.d. of Quiller and chair of the IPG, said the take up was "very much in line" with what he had expected. He said: "The individual publisher has to make his or her decision, but it will depend how robust their cashflow is. If it is robust, logic would suggest it’s better not to give away an extra discount."
He added: "One must remember this is 2% off the retail price, which is rather more than you would have to pay if you were borrowing money from a bank. The logic would be to go for the extra 30 days if the cashflow could sustain that."
At the time Amazon announced the changes, many publishers complained that the earlier payment was commensurate with the amount of time taken on the standard system. Another concern was the lack of notice given, as the terms were altered a week after the retailer made the announcement.
David Grant, co-director of Infinite Ideas, said: "My understanding was they would continue paying as they were—that it was the same as before, minus the points.” Grant added he had tried to contact Amazon "at least three or four times" to discuss the changes, but had not received any response.
He said: "I just feel they have handled it in a very unprofessional way, in how they have dealt with their suppliers." Grant added: "We have a better relationship with Amazon.com than we do Amazon.co.uk."
No one from Amazon was available for comment.