Back by popular demand! The Amazon Rip-off!

So many readers and authors have contacted me regarding Amazon and CreateSpace ripping them off with inaccurate reports of sales, that I was compelled to repost this blog.   The question remains. . . what do we as Indie Authors do about it?   Please, repost this article and tweet it.   Will someone from the press or AP ever pick it up?

I had one AP reporter contact me. . . she did not believe it was happening.  But if you are an author, you know it is.

Guest post by John. R. Clark, Managing Editor at AgeView Press

When AgeView Press Indie pubbed the book FLYING SOLO in May of 2012, the author, Jeanette Vaughan  immediately began tracking sales.   She heard from excited friends and family who immediately emailed when ordering their copies.  The first sales were off of Createspace’s e-store with the title ID number given to the author.   Then, through Amazon, a week later, when the book went live on the site.  Finally on Kindle, when the ebook format was completed.

ostrich head in the sand
“Where, oh where are my royalties?”

Initially, things appeared kosher.    People exclaiming that they had ordered the book, were showing up within a day or two on the electronic royalty reports with a reasaonable accuracy.    But by June and July, sales descrepencies were noted by the author from customers claiming that they had purchased the book directly through Amazon, not an Amazon affiliate.    Many of these sales were simply not listed.The author contacted Createspace customer support, who gave assurance that all sales were being accurately reported.   FLYING SOLO was now also on Kindle Direct Publishing (KDP) Select as well as expanded distribution channels, which included Amazon affiliates in the UK, France, Germany, Italy, and Spain.    Sales were being reported to the author from readers and bookclubs in Canada, Australia, and New Zealand.

The first note of apparent discrepancy came when a dear friend of the author ordered three copies of the book from Amazon in June.    These books were ordered all at the same time, from direct.   Yet, that cluster of three sales was never posted as such.      Another instance in early July involved the same issue.    Again, a customer ordered three copies, yet no sales were trackable through Amazons channels for three sale purchased on the same day.

Meantime, the author was making public appearnances, being featured on blogs and radio, and rounding with booksignings.   During the months of June and July, no expanded distribution channel sales were posted on the royalty report, yet customers were emailing the author letting her know how much the book was being enjoyed overseas.   More than 15 five star reviews for the novel were posted on Amazon.

What should have shown as a surge of sales, as the book peaked, never appeared on the royalty reports.   The author was suspect.   She contacted Ingram directly, only to be informed that they were not supposed to reveal information to an author directly.  So, the Indie publisher, AgeView Press made the call.    Ingram showed 16 copies of the book ordered through their system total since May.   Those sales never showed on the June or July royalty report.    The author filed formal complaints with Createspace customer service, but received only canned letters in response explaining  that indeed there was an issue with reports in Expanded Distribution and it was being investigated.   Advice to author?  Please be patient.

By August, it was clear there were gross in accuracies.  The 30 copies ordered from Barnes and Noble never showed up.   Few if any sales were listed for August.    Yet the author had confirmation of over 4,000 copies in distribution worldwide.    The crowning blow came in September.   A plan was devised.    A friend, agreed to help with the investigation.   She ordered a copy of FLYING SOLO on September 7th, taking screen shots of her order and confirmation of payment directly from Amazon.    She printed out here receipt showing date and time of purchase.   The book arrived on September 13, to San Jose, California.   Photos were taken.   The sale was complete.    Copies of all screenshots and receipts were scanned and sent to the author.    By September 20th,  no sales were shown at all on Createspaces report.    Phoning Createspace, the author was informed that no sales were showing for Amazon for the month for that title.    It was time for outrage!     What had been suspected, had now been proven.  Not once, but twice!

Time to climb up the foodchain.  After many phonecalls and emails to Createspace, a Senior customer service “executive” phoned personally and stated he would investigate.    Talk about a wacky result.    Due to the print on demand status of Createspace books, sometimes they are one or two books ahead.   Thus even though your book was printed in one month, but sold in another, a royalty might actually show up in the prior month for that sale.   What???

No one expects to get rich off of writing a book.    Few and far between are the Oprah Bookclub golden orbs of success.    But how are authors to trust a system, happy to take their money for assisting to create and publish a book, which does not thoroughly, detail accurate sales?    Simply outrageous.   What options does that leave the Indie publishers?     How can they possibly track the success of their marketing efforts.   Is the publishing world doomed to be controlled by the big six?     Are small bookstores and Indie presses to be overrun by powershouse chains which offer the Indie published writer no turf?

How can the press or the author be sure those sales are accurate with no detail?   Rise up Indie authors!    Repost this story!    Tweet it, facebook it.    Make it go viral.   Print it and send it to your local newspaper and the Associated Press.   This abject fraud is outrageous and MUST STOP!

John R. Clark, Managing Editor, AgeView Press

10 thoughts on “Back by popular demand! The Amazon Rip-off!

  1. Mollie Sluss says:

    I am having trouble getting my Kindle Royalties. Friends have purchased my books and I have received no compensation nor have these sales showed up on the monthly reports. One purchaser even wrote a review of this book as an “Amazon Verified Purchaser” and Amazon claims this purchase was “declined”—whatever that means. Now after 7 contacts with Kindle support nothing has been resolved. Something is definitely not right—how does one go up against an Amaxon?

  2. Mollie Sluss says:

    The link to the Associated Press is erroneous—it takes you to an Audio Precision site…

  3. Contracts negotiated by literary agent always give the writer the ability to audit the publishers’ accounts for their own books–at their own expense if the accounts are upheld, the publishers if they aren’t. Self-published writers need the same in their agreements with Amazon, CreateSpace, etc.The trouble is that individual writers have virtually no leverage, and no one speaks for them. With so great an imbalance of power, abuses are bound to occur.

  4. […] Jeannette Vaughan ran an interesting blog post recently, entitled “The Amazon Ripoff,” in which she argues that Amazon And CreateSpace underreported sales of her book, released by […]

  5. We continue to get mileage out of this post. Now that Amazon has bought Goodreads. . .wow. . .see what I mean? They are sucking up the market. Do you see any profits?

  6. Amazon, are complete fraudsters. The guy running the business, Jeff Bezos, used to work on Wall Street, need I say more. His company refuses to pay taxes in the states that he sells his books/products and he has ripped off so many of the people marketing his website, most Amazon Associates as they are called are ripped off and not paid for sales. Jeff Bezos company pockets the ill gotten profits from those Affiliates. He also treats his employees like crap, especially the ones working in the warehouses that ended up suing him. Good luck talking to a real person of responsibility at Amazon, they never speak to the public. I give it 10 years before another retail company puts them out of business or at the very least takes more of their business. He tried to and got approval for the one click order, can you believe that nonsense. The guy, the company are a bunch of crooks. Mark my words their time is coming!

  7. Peter Penit says:

    Many 3rd party marketplace sellers on Amazon undercut prices on items including books. The money from 3rd party marketplace sellers does not go into the rights holder’s pocket. Books seem to be available for sale even if they are out of print for years especially smaller indie titles. Amazon gets a cut of the sale regardless and seems to do nothing to stop this practice even when notified by copyright holders. Amazon also has a patent to sell used Mp3 and Mp4′s which means Amazon can resell mp3 files as used, virtually stealing copyright through first sale doctrine. When a publisher hits the accept button on Amazon-Createspace they are agreeing to arbitrate through mediation with any future claims against Amazon instead of using the court system. Furthermore, even if a publisher or copyright holder decides not to use Amazon-Createspace as a publisher Amazon still lists the item on their site allowing 3rd party marketplace sellers to sell the item.
    Hopefully these links are of help to some:

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