How to set up trade accounts with publishers and distributors

To sell new books, you must open trade accounts with book wholesalers and publishers. The most effective way to start is by opening an account with a major wholesaler like Gardners. This gives you immediate access to a massive catalogue of books from thousands of publishers through a single account, simplifying your ordering and invoicing.

Why are trade accounts essential?

Trade accounts allow you to buy books at a wholesale or 'trade' price, which is significantly lower than the Recommended Retail Price (RRP) you will sell them for. The difference between the trade price and the RRP is your gross profit on each book. Without these accounts, you cannot operate a profitable bookshop.

Wholesalers vs. Going Direct to Publishers

You will likely use a mix of both, but it’s helpful to understand the difference. Most new bookshops start with a primary wholesaler and then open accounts with the biggest publishers once they are established.

Wholesalers (e.g., Gardners)Direct with Publishers (e.g., Penguin Random House)ProsA 'one-stop shop' for books from thousands of publishers. One order, one delivery, one invoice. Ideal for smaller, frequent orders of mixed titles.Potentially better discount margins. A direct relationship with the publisher and access to their promotional materials and catalogues.ConsThe discount you receive is slightly less generous than going direct.You need to manage separate accounts for every publisher. Minimum order values can be high, making it difficult for a small shop to manage.

How to Open Your Accounts

The process is similar for both wholesalers and publishers, and it shows them you are a legitimate retail business.

1. Prepare Your Business Details: Before you start, gather all your information. You will typically need your registered business name and address, company registration number (if you're a Limited Company), VAT number (if registered), and business bank account details.
2. Find the Application Form: Go to the website of the wholesaler or publisher you want to work with. Look for a link in the footer or main menu labelled "Trade", "Retailer Information", or "Open an Account".
3. Complete the Application: Fill out the application form carefully. You will likely be asked for details about your shop, such as its location and opening date. Be prepared to provide proof that you are a real bookshop, such as a copy of your lease agreement or photos of your premises.
4. Await Approval: It can take several weeks for an account to be approved. Once accepted, you will be given your account number and details on how to place your first order. Don't be afraid to send a polite follow-up email if you haven't heard back.

A quick tip: Many suppliers will ask for your first few orders to be paid 'pro-forma', which means you pay upfront before they ship the books. After you've established a trading history, you can apply for a credit account (e.g., with 30-day payment terms).