How to manage publisher returns for unsold stock

To keep your bookshop's finances healthy and shelves fresh, you need to regularly identify books that aren't selling and return them to the publisher or distributor for credit. This process, known as 'sale or return', is a standard industry practice, but you must follow each supplier's specific returns policy carefully to ensure you get your money back.

Why Managing Returns is Crucial

Effectively managing your unsold stock is not just about tidying the shelves. It has direct financial benefits:

• Improves Cash Flow: Returning a book turns it from a static asset back into credit on your account, which you can use to buy new, more popular titles.
• Frees Up Shelf Space: Every book on your shelf needs to earn its place. Removing slow sellers makes room for new releases and bestsellers that are more likely to attract customers.
• Informs Future Buying: The process of identifying returns helps you understand what isn't selling, allowing you to make smarter purchasing decisions in the future.

A Step-by-Step Guide to Processing Returns

1. Check the Returns Policy: Before you do anything, find the returns policy for the specific publisher or distributor. This is usually found in the terms and conditions of your trade account or on their website. Look for key details like:
   • The Returns Window: When can you return a book? A common policy is that books cannot be returned before 90 days but must be returned before one year has passed.
   • Condition: Books must be in a pristine, 'as new' saleable condition.
   • Authorisation: Do you need to request permission before sending them back?
   • Paperwork: What forms or documents need to be included with the shipment?
2. Identify Slow-Moving Stock: Use your inventory management or Point of Sale (POS) system to run a report on books that haven't sold for a set period, like the last 3-6 months. This gives you a clear, data-driven list of titles to consider for return.
3. Inspect the Books: Physically check each book from your list. Publishers will reject returns that are damaged, have faded covers from sunlight, or have bent corners. Only return stock that looks brand new.
4. Request Authorisation: Most suppliers require you to submit a returns request, often by sending a list of ISBNs and quantities. Wait for them to send you an authorisation number or document before you pack anything up.
5. Pack and Send Securely: Package the books carefully in a sturdy box to prevent damage during shipping. Make sure you include the authorisation paperwork inside the box. It's always a good idea to use a tracked courier service as proof of postage and delivery.
6. Confirm Your Credit: Once the supplier has received and processed your return, they will issue a credit note. Check your next statement from them to ensure this credit has been correctly applied to your account.

Top Tips for an Efficient Returns Process

• Keep a Calendar: Note the returns deadlines for your main suppliers to avoid missing the window.
• Work in Batches: Set aside time every quarter to manage returns. Doing it all at once is more efficient than dealing with small, frequent returns.
• Be Objective: It can be hard to part with a book you love, but if it isn't selling, it's taking up valuable space that a more popular title could use.
• Consider Alternatives: If a book is slightly damaged and can't be returned, or if you've missed the returns window, consider putting it in a bargain bin or sale section to recoup at least some of the cost.

Managing returns effectively is a vital skill for any bookseller. It turns dead stock back into working capital, allowing you to invest in new books that your customers will love.