I got this in my email [mind you, Publishing Basics is a great newsletter--but keep in mind they are 'selling' a product ((their services)) but the article is valid] and quite scary.

There was an array of “distributors” whose main goal was to make money from upfront fees and storage, not sales to bookstores. Then, along came Biblio.  Biblio truly wanted to sell books to bookstores and help the small publisher. They charged a very small setup fee and their storage charges were reasonable. The word spread like hotcakes and their list of publishers grew. On the surface, it looked like a small press dream had come true.  Unfortunately this dream turned into a nightmare for not only many small publishers but for Biblio as well.

He goes on to explain his falling out of love with Baker and Taylor, and his experience with Ingram:

…When I contacted Ingram, they were more than willing to set me up as a distributor.  I had more than enough titles and those titles would surpass any minimums Ingram would impose.  Luckily, I bounced my payment idea off the Ingram rep.  I can still hear him laughing.

If I wanted to hold money until after the last day that books could be returned, I would never pay my authors a cent. Why?  Books are returnable FOREVER.  What kind of crazy system is that? Well it is what it is . . . Bookstores pay their bills to Ingram with returns.  Ingram pays their distributors with returns.  In short, if any real money changes hands, it is not by design.  It’s a giant scam. No wonder the big publishers are in such sad shape.  This system is total nonsense.  As a small publisher, let me tell you this: You do not need bookstore sales under these conditions.  You can’t afford it.   The Bookstore Distribution Emperor truly has no clothes.

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