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Munro's Books of Victoria, an independent bookseller.Handout

Independent bookstores across Canada would like to see federal funding help with their major shipping costs so they can compete with larger online retailers.

This week’s federal budget included $39.3-million over two years to support the Canadian book industry, and more than $32-million of that will go specifically to help bookstores increase online sales. The Department of Finance has yet to specify what form the funding will take, or how it will be allocated. Though the federal investment was welcomed by booksellers, many of the independents want to ensure the money will go to where it’s most needed.

“The big challenge for us as retailers is competing with major online venues for shipping,” said Jessica Walker, the managing partner of Munro’s Books in Victoria. “The shipping costs, and being able to offer something that is competitive.”

This Saturday marks Canadian Independent Bookstores Day, and while other arts sectors, such as live music and theatre, shut down during the COVID-19 pandemic, bookstores have seen more steady business as Canadians try to stay occupied at home. However, much of this business comes with a major expense: the price of shipping. Large retailers such as Amazon and Indigo can absorb those costs easier but it’s a struggle for smaller players.

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“You don’t want to scare people off, so we tend to subsidize most deliveries,” said Jim Sherman, owner of Perfect Books, an independent store in Ottawa. “That’s where money has leaked away.”

Mr. Sherman said he was puzzled that the budget funding focused specifically on online sales. “Setting up online orders should be child’s play, and costs very little. If a bookstore doesn’t have a website by now, I’m sorry but they’re probably out of business,” he said.

Though many shipping orders come through an online platform, customers also call into stores to place orders, or might even drop by in person to have something shipped later.

Bookmark, an independent bookstore in Halifax, prefers to not compete with larger retailers when it comes to shipping. Instead, they deliver to their local customers, with one of their employees delivering books on her bicycle. “We’re small enough that we have to ask people to pay for shipping,” said Mike Hamm, the manager and buyer at Bookmark. They sometimes ship books to different parts of Canada and even the U.S., he said, but the customer, not the store, covers the cost.

“Some customers are making a very conscious shopping decision,” said Ms. Walker at Munro’s, “and an $8 shipping charge isn’t a deal breaker for them. But for a lot of customers, it is.”

Books can be heavy to ship, but subsidizing that cost isn’t a new idea. Canada Post offers discounted rates to ship library materials, and More Canada, an organization of Canadian publishers, released a report this January calling for a reduced shipping rate for Canadian stores. Lower shipping rates could be a “cultural policy,” the report reads, that would help promote books by Canadian authors.

If the funding in the federal budget is directed toward improving shipping costs, Ms. Walker said it would make a big difference for independent bookstores. “Many of us are hoping there will be some sort of postal subsidy,” she said. “Anything that provides a little more equal footing is important.”

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