View source for Returns

[[Category:Publishing Terms]]
Publishers ship far more books than will be sold to retailers. These books are either sold to consumers or returned to the publisher for credit. An author's [[Royalty Statements|royalty statement]] will for a time reflect a "Reserve for Returns" - a percentage of sales revenue being held back in anticipation of books being shipped back to the publisher. Over time, the reserves are liquidated to reflect actual [[Returns|returns]]. This number is used to calculate an author's [[Sell-Through|sell-through]] percentage -- a tool used by publishers in determining whether to offer future contracts, the size of future advances, and other negotiating points.