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Booktopia's collapse exposes challenges in Australian publishing industry

Published 12/07/2024, 01:46 pm
Updated 12/07/2024, 02:00 pm
© Reuters.  Booktopia's collapse exposes challenges in Australian publishing industry

The collapse of Australia's largest book-selling website Booktopia has highlighted the challenges facing Australia's publishing industry and its reliance on retailers for diversity and financial viability.

In the United States, books need to sell between 1,000 to 10,000 copies in a week to make it onto the New York Times bestseller list.

Small local industry

By contrast, the Australian market is much smaller. For mid-range publishers, an Australian bestseller sells 5,000 copies over its lifetime, while larger publishers celebrate hitting 10,000 copies.

And yet publishing costs are rising. Freight and paper prices have increased, and publishers hesitate to raise book prices, fearing they will deter readers during a cost-of-living crisis.

This environment has made supportive retailers crucial for achieving sales targets. Independent bookstores, chains, and discount department stores (DDS) like Big W and Kmart are the main sectors contributing to Australian book sales.

DDSs, known for their deep discounts, significantly influence publishers to invest in more commercial titles to ensure large print runs and lower unit costs.

Independent bookstores, known for championing early career voices, remain vital for selling a wide range of titles. Sydney's Better Read Than Dead bookstore exemplifies this by promoting local authors through in-store events.

Previously a market leader

Online retailers have seen significant growth, with Booktopia previously leading the market, selling A$200 million a year before its collapse.

"Booktopia has been a fantastic supporter of Australian authors and publishers," said publishing expert Dr Jan Zwar from Macquarie University.

Its collapse leaves a void in the market, with interest from parties such as QBD Books and Kogan potentially filling the gap.

Despite these challenges, the Australian publishing industry remains resilient.

"While it is a tough period, I have confidence in the future of the Australian industry," said Dr Zwar.

The rise of audiobooks offers new opportunities, although print books remain the preferred format. It remains to be seen how the industry will adapt to changing reading habits to maintain its cultural and economic impact.

Read more on Proactive Investors AU

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