IngramSpark Wholesale Discount & Returns Explained

By Isabella Watson | Last updated: November 2, 2026
IngramSpark Wholesale Discount & Returns Explained
You're filling in your book's details on IngramSpark. Everything is going smoothly until you reach two boxes: Wholesale Discount and Returns.
IngramSpark recommends 55%. A friend in your writing group says 40%. A forum post says, "Never allow returns." And the help text doesn't tell you what any of it means for your bank account.
So you guess. And that guess can quietly cost you hundreds, sometimes thousands, of dollars over the life of your book.
This guide takes the guesswork out. Whether you're publishing on your own or comparing book publishing services, you'll see exactly what each setting means, the real dollar difference between 40% and 55%, what happens when a bookstore sends a book back, and the right choice for your goals.

What Is a Wholesale Discount on IngramSpark?

A wholesale discount is the percentage taken off your book's list price before you get paid. That discount is shared by the companies that sell your book: Ingram (the distributor) and the bookstore or retailer.
List price – wholesale discount – printing cost – distribution fee = what you earn
IngramSpark calls what you earn your "publisher compensation."
Your choices in the US:
  • Minimum: 40%. IngramSpark raised the US minimum from 30% to 40% in 2023
  • Maximum: 55%
  • IngramSpark's recommendation: 55%, though 40% is acceptable
  • Distribution fee: 1.875% of your list price on each sale (raised from 1% in February 2026)
The part most authors don't know: your discount isn't all going to the bookstore. Ingram takes its share first.
You SetIngram's Share (approx.)What the Bookstore Sees (approx.)Bookstore's View
55%~15%~40%"Standard" discount
40%~20%~20%Too low to stock
You set only 40%. One person learned this the hard way: she set 40%, thinking bookstores see 40%. After Ingram's share, the store is left with only 20%.

How Much Do You Really Earn at 40% vs 55%?

Let's do the math. Here's a 300-page, 6x9 black-and-white paperback, with a printing cost of about $5.20, at four common prices.
Print cost depends on trim size, page count, and paper. Always confirm with IngramSpark's Publisher Compensation Calculator.
List PriceYou Earn at 40%You Earn at 55%Difference per Copy
$14.99$3.51$1.27$2.24
$17.99$5.25$2.56$2.69
$19.99$6.42$3.42$3.00
$24.99$9.33$5.58$3.75

Includes the 1.875% distribution fee. Printing cost held at $5.20 for comparison; your real cost depends on trim size, page count, and paper. Always confirm with IngramSpark's Publisher Compensation Calculator.

The $17.99 row matches a published example: a 55% discount leaves about $2.56 per copy, while 40% leaves about $5.25.

The question that really matters: At $17.99, you earn about twice as much per copy at 40%.

So ask yourself: "Will choosing 55% at least double my sales?"

  • If yes (you're actively getting into bookstores or libraries), 55% can pay off.
  • If no (most of your sales are online), 40% puts more money in your pocket.

What about cheaper books?

Look at the $14.99 row. At 55%, you earn just $1.27 per copy. For shorter or lower-priced books, the 55% discount leaves very little room. If bookstores aren't your goal, you may need to price a little higher to make the math work, as long as the price fits your genre.

Why Do Bookstores Care So Much About 55%?

Because bookstores run on thin margins. They pay rent, staff, and shelf space for every book they stock.
IngramSpark itself warns that any US discount below 53% makes your book "short discounted," and many bookstores won't order it.
That doesn't mean they can't get your book. It means most won't stock it on their own. A few things still happen at 40%:
  • Online stores like Barnes & Noble's website and Bookshop.org can list it
  • Customers can still special-order it at a bookstore
  • Local stores may take it on consignment (you bring copies; they pay you when they sell)
What won't usually happen at 40%: a bookstore ordering copies to put out on its shelves.

What Are IngramSpark's Return Options?

Bookstores want to know they can send back books that don't sell. That's what the Returns setting controls.
You have three choices:
OptionWhat HappensWhat You Pay per Returned Book
No (non-returnable)Stores can't return booksNothing
Yes – DestroyReturned books are pulped by IngramThe wholesale price
Yes – Deliver (US only)Returned books are shipped to youThe wholesale price + shipping

For Yes – Destroy, you're charged only the current wholesale cost of each returned book, with no shipping fees. For Yes – Deliver, US shipping and handling runs about $3.00 per book.

Important details:

  • You're charged the wholesale price in effect on the day the return is processed, not the day the book sold
  • Returns are deducted from your monthly earnings
  • Changing your mind has a delay: if you switch from returnable to non-returnable, booksellers can still return books for 180 days

What Does One Returned Book Actually Cost You?

This is the part that surprises authors most. Let's use our $17.99 book at a 55% discount.
StepAmount
You earned when the store bought the book+$2.56
Ingram charges you the wholesale price when it's returned–$8.10
Your net result for that one book–$5.54
In other words, one returned book cancels out the profit from about three sales.
With Yes – Deliver, you'd also pay about $3 shipping, but you'd get the book back to sell at events. With Yes – Destroy, you pay less but get nothing back.
Some authors have been hit hard by this. One author reported being charged $800 three separate times before turning returns off entirely.
So should you avoid returns? Not necessarily. Returns are the price of entry for bookstore shelves. The key is to only turn them on when you're actively working with bookstores, and to watch your monthly reports closely.

Which Setting Is Right for Your Book?

Here's the simple version. Find the goal that sounds most like you.

Goal 1: "I mostly sell online and at my own events"

  • Discount: 40%
  • Returns: No
  • Why: You earn the most per copy, with zero return risk. Sell signed copies yourself at talks, churches, clubs, and fairs.

Goal 2: "I want local bookstores to carry my book"

  • Discount: 55%
  • Returns: Yes – Destroy
  • Why: This is the setup bookstores expect. Pair it with personal visits to local shops.

Goal 3: "I want libraries to order my book"

  • Discount: 55% is safest
  • Returns: Optional (libraries rarely return books)
  • Why: Libraries order through wholesalers, and a standard discount makes your book easier to buy.

Goal 4: "I'm doing a big bookstore launch or tour"

  • Discount: 55%
  • Returns: Yes – Deliver (so returned copies can be resold at events)
  • Why: Gives stores confidence, and you recover usable copies.

Quick decision chart

Your Main GoalDiscountReturns
Online sales + personal events40%No
Bookstore shelves55%Yes – Destroy
Libraries55%Optional
Bookstore launch or tour55%Yes – Deliver
Good to know: You can change your discount and returns later. IngramSpark updates price, discount, and returns changes weekly. But if you switch returns off, remember the 180-day window before that change fully takes effect.

How Does This Fit With Amazon KDP?

Most authors use KDP for Amazon and IngramSpark publishing for everyone else. Here's why that matters for you:
  • Amazon sales should go through Amazon KDP, which pays roughly 60% minus printing on books priced at $9.99 or more. That's usually better than any IngramSpark discount
  • Your IngramSpark discount only affects non-Amazon sales: bookstores, libraries, and online stores
  • Keep your list price the same on both platforms. A lower price elsewhere can lead Amazon to drop its price too
That's the beauty of Ingram publishing alongside KDP: you can choose a bookstore-friendly 55% on IngramSpark without hurting your Amazon earnings.
(Using both? Read our IngramSpark vs KDP Print: Which to Use (and How to Use Both).)

What Mistakes Should You Avoid?

  • Setting 40% and expecting bookstores to stock you. They'll see only about a 20% margin
  • Setting 55% with no bookstore plan. You give away half your profit for sales that may never come
  • Turning on returns just in case. Returns only make sense if you're actively approaching stores
  • Pricing too low for a 55% discount. A $14.99 book at 55% earns very little
  • Forgetting to check monthly reports. Returns are deducted automatically
  • Different prices on KDP and IngramSpark. This can trigger Amazon price matching

Want an Expert to Set This Up for You?

Here's the truth: there's no single "right" discount. The right setting depends on your book's price, your audience, and your plans. Getting it wrong can mean either thin profits or missed bookstore opportunities.
That's exactly what Berg Publisher helps authors solve.
We don't just upload your book. We look at the numbers for your exact book, and set up your discount, returns, and pricing so they work together on IngramSpark and KDP.

What Berg Publisher does for you

  • Personal margin analysis: we calculate your real earnings at 40%, 55%, and in between, based on your book's actual printing costs
  • Smart pricing: a list price that fits your genre and leaves room for profit
  • Correct returns setup: only when it makes sense for your plan
  • IngramSpark + KDP setup, done right with your own ISBNs
  • Bookstore and library readiness: professional cover, metadata, and sell sheets that stores expect
  • Store buyer talk: no confusing tickets or automated replies

Why authors trust Berg Publisher

Too many authors come to us after working with a book publishing agency that charged nothing, explained nothing, or locked them into terms they didn't understand. As a US-based book publishing company, we do it differently:

  • You keep 100% of your rights and royalties
  • Clear, itemized pricing. No surprises
  • Every setting explained in plain English
  • Patient support, whether it's your first book or your fifth

The Bottom Line

  • 40% discount = more money per copy, but bookstores won't usually stock you
  • 55% discount = bookstore-friendly, but about half the profit per copy
  • Returns open bookstore doors, but one return can cancel out about three sales
The right choice comes down to one question: Where will most of your sales really come from?
Run the numbers for your own book, match the settings to your goal, and you'll never have to guess at those two boxes again.

Frequently Asked Questions

1. What wholesale discount should I set on IngramSpark?

If you mainly sell online or at your own events, 40% usually earns you more. If you want bookstores to stock your book, 55% is the industry standard. IngramSpark warns that US discounts below 53% are considered "short discounted," and many stores won't order them.

2. Why does IngramSpark recommend a 55% discount?

Because Ingram keeps part of the discount for itself. At 55%, bookstores end up with roughly the standard 40% margin they need. At 40%, they're left with only about 20%, which is usually too little for them to stock your book.

3. Should I make my book returnable on IngramSpark?

Only if you're actively trying to get into bookstores. Returnable books are more attractive to stores, but you're charged the wholesale price for each return. For online-only sales, "No" is usually the safer choice.

4. What's the difference between "Yes – Destroy" and "Yes – Deliver"?

With Yes – Destroy, returned books are pulped and you pay only the wholesale price. With Yes – Deliver, the books are shipped to you, and you pay the wholesale price plus shipping (about $3 per copy in the US), but you can resell them at events.

5. Can I change my discount or returns setting later?

Yes. IngramSpark updates price, discount, and returns changes weekly. But if you switch from returnable to non-returnable, bookstores can still return books for 180 days afterward.

Get your free margin review

Send us your book's page count, trim size, and price. We'll show you exactly what you'd earn at 40% and 55%, whether returns make sense for you, and the setup we'd recommend, at no cost and with no obligation.
Start with Berg Publisher or our IngramSpark publishing setup if you want those two boxes filled in correctly the first time.

Author Bio:

Isabella Watson is a professional content specialist focused on book publishing and author services. She writes and reviews technical and informative content to help aspiring and seasoned authors navigate the professional publishing process. Her work focuses on quality, trust, and hassle-free creative writing.

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IngramSpark Discount & Returns: 40% vs 55% Explained