Product Code Database
The direct market is the dominant distribution and retailing network for American comic books. The concept of the direct market was created in the 1970s by Phil Seuling. The network currently consists of:
The name is no longer a fully accurate description of the model by which it operates, but derives from its original implementation: retailers bypassing existing distributors to make "direct" purchases from . The defining characteristic of the direct market however is non-returnability: unlike book store and news stand distribution, which operate on a sale-or-return model, direct market distribution prohibits distributors and retailers from returning their unsold merchandise for refunds. In exchange for more favorable ordering terms, retailers and distributors must gamble that they can accurately predict their customers' demand for products. Each month's surplus inventory, meanwhile, could be archived and sold later, driving the development of an organized market for "back issues."
The emergence of this lower-risk distribution system is also credited with providing an opportunity for new comics publishers to enter the business, despite the two bigger publishers Marvel Comics and DC Comics still having the largest share. The establishment and growth of independent publishers and self-publishers, beginning in the late 1970s and continuing to the present, was made economically possible by the existence of a system that targets its retail audience, rather than relying on the scattershot approach embodied in the returnable newsstand system.
In 1957, Atlas (later Marvel Comics), was forced to switch from American News to that of its biggest rival, Independent News, which imposed draconian restrictions. As then-Atlas editor Stan Lee recalled in a 1988 interview, "We turning out 40, 50, 60 books a month, maybe more, and ... suddenly we went ... to either eight or 12 books a month, which was all Independent News Distributors would accept from us." In 1968, while selling 50 million comic books a year, Marvel revised the constraining distribution arrangement with Independent News it had reached under duress during the Atlas years, allowing Marvel now to release as many titles as demand warranted. By 1970, Independent News was defunct, absorbed into a larger and changing distribution business.
The direct market was created in the early 1970s in response to the declining market for mainstream comic books on . Fan convention organizer and comic dealer Phil Seuling approached publishers in 1972 to purchase comics directly from them, rather than going through traditional periodical distribution companies. Unlike the newsstand, or ID (for independent distributor) market, which included drugstores, groceries, toy stores, convenience stores, and other magazine vendors, in which unsold units could be returned for credit, these purchases were non-returnable. In return, comics specialty retailers received larger discounts on the books they ordered, since the publisher did not carry the risk of giving credit for unsold units. Instead, distributors and retailers shouldered the risk, in exchange for greater profits.
Additionally, retailers ordering comics through Seuling's Sea Gate Distributors (and within two years, through other companies) were able to set their own orders for each issue of each title, something which many local IDs did not allow. This ability to fine-tune an order was crucial to the establishment of a non-returnable system.Evanier, Mark. "Notes From Me," POV Online (Dec. 31, 2004). Accessed Oct. 14, 2014.
Direct distributors typically were much faster at getting the product into the hands of their customers than were IDs: a direct distribution warehouse generally had re-shipped a weekly batch of comics or delivered it to local customers within a day or two (sometimes within hours) of receiving the books from the printer. By contrast, most IDs would usually take two or even three weeks to do so, though some moved more quickly. This factor was a strong drawing card for retailers whose customer base consisted principally of fans eager to see the new issues each week.
Finally, another factor in creating demand for direct sales distribution was that many IDs refused to deal with comics specialty shops or with any retailer who dealt in back issues on any terms at all, fearing that used comics could be purchased by these shops from readers for pennies, and then cycled back through the system as returns for full credit at a profit.
By the mid-1970s, other direct sales distribution concerns had sprung up, mostly regionally based (Donahoe Brothers in the Great Lakes region, Pacific Comics Distributors in Southern California, and New Media/Irjax in the Southeast were all operating by early 1974), essentially replacing the order-taking and fulfillment functions of newsstand distributors for the infant comic shop specialty market. For several years, Seagate retained an edge over its competitors in that it was able to provide "drop shipping" (the shipment of an order directly from the printer to the retailer) to its customers for quantities of 25 or multiples thereof per issue, while the newer distributors had to use more conventional methods, putting together customer orders and re-shipping or delivering them from their own warehouses. Threats of legal action"Direct Distribution" in Duin, Steve and Richardson, Mike (ed.s). Comics Between the Panels (Dark Horse Publishing, 1998), pp. 126-130. and the need for retailers to order very precise (and sometimes very small) quantities of items ended this practice for all but the largest customers by the end of the 1970s, and extended the ability to provide drop shipping to those large customers to all the direct distributors — by which time several of the newer distributors had multiple warehouses.
Newsstand distribution through the IDs continued at the same time (and indeed remained dominant for years afterward, on its conventional returnable, low-discount terms).
As early as 1980, Marvel Comics saw the growth potential of the direct market,"Marvel Focuses On Direct Sales," The Comics Journal #59 (October 1980), pp. 11-12. and by 1981 was putting out a number of titles geared specifically to that market (including Dazzler and Ka-Zar the Savage). By the early 1980s, all the major publishers were producing material specifically for the new market, series that would probably not sell well enough on the newsstand, but sold well enough on a non-returnable basis to the more dedicated readers of the direct market to be profitable."The Direct Sales Boom," The Comics Journal #64 (July 1981), p. 7.
Several of the new distributors lasted a relatively short time, and were succeeded by more competitive organizations; Diamond Comic Distributors replaced New Media/Irjax and Capital City Distribution largely replaced Big Rapids Distribution in the marketplace.
By 1985, the number of direct distributors in North America peaked with approximately twenty companies, many of them multi-warehouse operations, purchasing product for resale to retailers directly from either DC Comics, Marvel Comics, or both. There were also an unknown number, probably in the dozens, of sub-distributors who bought DC and Marvel product from these larger companies (and often the products of other, smaller publishers direct from those publishers), and re-sold to retailers. Most of these sub-distributors were in cities in which the direct distributors themselves did not (at least as yet) have warehouses, including Philadelphia, Boston, Columbus (Ohio), Madison (Wisconsin), Lansing (Michigan), Indianapolis, and Berkeley (California). Many of them were eventually absorbed by the companies which had been their principal suppliers.
From the mid-80s to the mid-90s, nearly every major urban area in the United States had at least one (and sometimes two or three) local direct distribution warehouses that functioned not only as distribution points for pre-ordered weekly shipments, but also as what could be described as "supermarkets for retailers", where store owners could shop for reorders and examine and purchase product that they might not have ordered in advance.
Such rapid growth (due partially to speculation) was economic bubble, however. The market contracted in the mid-1990s, leading to the closure of many Direct Market shops.Miller, John Jackson. "Nov. 17, 1992: A $30 Million Day — and the Days After," "The 1900s: 10 biggest events from 100 years in comics," CBGXtra.com (Dec. 12, 2005). Diamond and Capital City began closing local warehouses, moving from a decentralized model in which many local warehouses provided full service to a given area to a centralized one with a few shipping hubs and no local walk-in service at all. In 1994, Capital City created controversy by announcing penalties for publishers who didn't deliver their products within promised deadlines; this move followed an industry-wide push for 30-day returnability, a practice formerly in use when comics were primarily distributed in newsstands."Newswatch: Capital Announces Controversial Penalty Fees for Publishers: Move Follows Industry-wide Push for 30-day Returnability," The Comics Journal #166 (February 1994), pp. 17–26.
In early 1995, Marvel Comics purchased Heroes World, by that time the third largest distributor behind Diamond and Capital City,Gray, Bob. "Newswatch: Marvel Buys 3rd Largest Distributor: Heroes World Purchase Signals Fundamental Changes in the Direct Market," The Comics Journal #174 (February 1995), p. 15-22.Gertler, Nat. "Marvel Buys Heroes World," Hogan's Alley, v. 1, no. 2 (1995), p. 17. with the intention of self-distributing their products; Heroes World also stopped carrying other publishers' books. Other distributors sought exclusive deals with other major publishers to compensate for the substantial loss of Marvel's business. DC Comics, Image Comics, Dark Horse Comics, and several smaller publishers made exclusive deals with Diamond Comic Distributors."Newswatch: Tip 11: Go Exclusive with Diamond" The Comics Journal #185 (Mar. 1996), p. 27. Most other distributors, including Capital City Distribution, Diamond's main competitor at the time, either went out of business or were acquired by Diamond. Others established niches — such as re-orders — in which they could compete. When self-distribution failed to meet Marvel's objectives, they also signed an exclusive distribution deal with Diamond, which had by then become the primary supplier for the Direct Market.
target="_blank" rel="nofollow"> "Inside DC's New Print Distribution Plan (And The New Distributors Involved)," Newsarama (April 17, 2020). Archived at the
target="_blank" rel="nofollow"> Wayback Machine. On April 28, 2020, Diamond announced that shipping to retailers would resume on May 20, after a seven-week shutdown.
| operated in the 1980s; in 1985 acquired assets of Cavco Longhorn |
| Wholesale distributor operated by Mile High Comics and run by Chuck RozanskiRozanski, Chuck. "Returning to the Topic of My 1979 Visit to the Marvel Offices," Tales From the Database, MileHighComics.com (March 2004). |
| Originally underground press and underground comix distributor founded in 1970; began mainstream comics distribution in early 1975, when Donahoe Brothers Inc. of nearby Ann Arbor went under. Two former employees — Milton Griepp and John Davis — went on to form Capital City Distribution. |
| Wholesale distribution operation |
| Owned by Mark Thompson and Tim Stroup. Specialized in small-press and independent comics; in March 1998, acquired the assets of Minnesota-based Downtown Distribution "About Cold Cut," Cold Cut official website. Accessed March 31, 2017. |
| Sub-distributor started by former Donahoe Brothers employee Jim Friel. (The name "The Comic Distributor" was later taken by Mark Hylton of Comic Carnival.) |
| Started by retailer Bob Hellems |
| Operated by Ron Foreman and Walter Wang; also a retailer — the retailer business was acquired by Fantasy Books & Games in mid-1995"Retail Chain Doubles Size with Acquisition," The Comics Journal #180 (Sept. 1995), p. 29. |
| Sub-distributor started by Robert Beerbohm and initially supplied by Big Rapids Distribution |
| Sub-distributor started by Phil Pankow and initially supplied by Bud Plant |
| Inherited New Media/Irjax distribution centers and warehouses |
| The second direct distributor (pre-dating both Pacific Comics and New Media Distribution by a month or two). The Donahoes had been in business for about a year, dealing first with Marvel Comics, then Warren Publishing, Atlas/Seaboard Comics, Charlton Comics, and Archie Comics, and finally (and only for about two or three months) with DC Comics when they went out of business. Also known as Comic Center Enterprises; their catalog was called Weekly Dealer |
| Still active retailer that once acted as a sub-distributor |
| Primarily supplied back-stock |
| Owner's name was Frank W. Mangiaracina. "Registered agent" located in Gary, Indiana; owner's offices located in Glen Ellyn, Illinois. Their catalog was called Future Comics. |
| Sold in 1986,"Newswatch: Glenwood Distributors Sold," The Comics Journal #108 (May 1986), p.21. they went through a financial crunch in the spring of 1987,"Newswatch: Glenwood in financial crunch," The Comics Journal #115 (April 1987), p. 23. were sued by four publishers that summer,"Newswatch: Four Publishers Sue Glenwood For Non-Payment," The Comics Journal #116 (July 1987), pp. 17-18. and declared bankruptcy in the fall of 1987"Newswatch: Glenwood Distributors Declares Bankruptcy," The Comics Journal #117 (September 1987), p. 12. |
| Distributor of hand-made and hard-to-find comics co-founded by Andy Hartzell and Jesse Reklaw; was partnered with Last Gasp |
| Began by acquiring the assets of Cold Cut Distribution.Carlson, Johanna Draper. "Cold Cut Becomes Haven Distributors," Comics Worth Reading (Mar. 16, 2008). Retrieved Sept. 8, 2008. Primarily focused on non-exclusive independent publishers; formally out of business as of October 31, 2011.Stahlberg, Lance. Haven website . Accessed December 17th, 2011. |
| The third largest distributor (behind Diamond and Capital City) at the time of its acquisition and out of business soon thereafter |
| Sub-distributor |
| Founded as a publisher; began distributing soon after |
| Part of Discount Comic Book Service |
| Run by Hal Schuster."Direct Distribution," in Duin, Steve and Richardson, Mike (ed.s), Comics Between the Panels (Dark Horse Publishing, 1998), pp. 126-130. In late 1981, the company filed for Chapter 11,"Newswatch: NM in Trouble, to File for Chapter 11," The Comics Journal #70 (January 1982], p. 16. and in 1982 it sold the distribution end of the business to Steve Geppi (who immediately founded Diamond Comic Distributors)."Newswatch: New Media Distribution out of Business," The Comics Journal #72 (May 1982), p. 16. |
| Sub-distributor |
| Retailer, publisher, and distributor; went bankrupt in 1984 |
| Also a publisher and retailer; mostly focused on underground comix, posters, and other products of the counterculture |
| Essentially the first direct market distributor |
| Originally owned by Hal Schuster of New Media/Irjax |
| Run by Scott Mitchell Rosenberg |
| Part of Midtown Comics |
| Sub-distributor; their personnel later became the nucleus of an early Capital City Distribution branch |
| Eventually run by Milton Griepp and John Davis, who later went on to co-found Capital City Distribution |
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