Having been a published author since 2005, I've dealt with selling books on my own and dealing with bookstores. Bookstores don't want the risk of having unsold books filling their shelves and hedge their bets by getting terms for 'Returns' to publishers when sales don't meet expectations.
If you're a small publishing outfit or a self-published author, you most likely can't afford terms for returns. All too often, even when the books are returned they are damaged and you would unlikely be able to sell them somewhere else at a profit if at all.
I've been fortunate so far in that bookstores I've dealt with purchased small amounts of my books which allowed them to ultimately sell them all. On the other tip, I have been 'stuck' with merchandise left over from signings so I can understand the hassle.
Here are two good articles one for returns by Morris Rosenthal and one against by Angela Hoy. Both give valid points on the subject and for those of you who would be self-publishers or are looking to start your own publishing gig to take a look.
Returnable Books Are Good For The Publishing Industry
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