It was long thought that Hawthorne originally planned The Scarlet Letter to be a shorter novelette, part of a collection named Old Time Legends, and that his publisher, James T. Fields, convinced him to expand the work to a full-length novel. This is not true: Fields persuaded Hawthorne to publish The Scarlet Letter alone (along with the earlier-completed "Custom House" essay) but he had nothing to do with the length of the story. Hawthorne's wife Sophia later challenged Fields' claims a little inexactly: "he has made the absurd boast that he was the sole cause of the Scarlet Letter being published!" She noted that her husband's friend Edwin Percy Whipple, a critic, approached Fields to consider its publication. The manuscript was written at the Peter Edgerley House in Salem, Massachusetts, still standing as a private residence at 14 Mall Street. It was the last Salem home where the Hawthorne family lived.
The Scarlet Letter was first published in the spring of 1850 by Ticknor & Fields, beginning Hawthorne's most lucrative period. When he delivered the final pages to Fields in February 1850, Hawthorne said that "some portions of the book are powerfully written" but doubted it would be popular. In fact, the book was an instant best-seller, though, over fourteen years, it brought its author only $1,500. Its initial publication brought wide protest from natives of Salem, who did not approve of how Hawthorne had depicted them in his introduction "The Custom-House". A 2,500-copy second edition included a preface by Hawthorne dated March 30, 1850, that stated he had decided to reprint his Introduction "without the change of a word... The only remarkable features of the sketch are its frank and genuine good-humor ... As to enmity, or ill-feeling of any kind, personal or political, he utterly disclaims such motives".
The Scarlet Letter was also one of the first mass-produced books in America. In the mid-nineteenth century, bookbinders of home-grown literature typically hand-made their books and sold them in small quantities. The first mechanized printing of The Scarlet Letter, 2,500 volumes, sold out within ten days, and was widely read and discussed to an extent not much experienced in the young country up until that time. Copies of the first edition are often sought by collectors as rare books, and may fetch up to around $18,000 USD.