Booksellers divided over Amazon's e-book deal
The retailer announced a program in which stores can sell its popular reading devices. The booksellers would get a small payment on each sale as well as a commission on all e-books that the reader buys during the next two years.
It was a great deal, booksellers said – for Amazon. The booksellers don’t necessarily agree.
‘‘I seriously doubt that many independent stores will take them up on it,’’ said Bill Petrocelli, co-owner of two stores in San Francisco.
Many booksellers are distrustful of Amazon, a company of boundless ambition and some aggressive ways. Some store owners dismissed the program as a Trojan horse aimed at further undermining their business.
Independents make up about 10 per cent of book sales, down from as much as 25 per cent before Amazon arrived on the scene.
‘‘We help Amazon grow its business and, in return, get a thin slice of the sale?’’ asked J.B.Dickey at Seattle Mystery Bookshop. ‘‘That’s not co-operation. That’s being complicit in your execution.’’
Jason Bailey, co-owner of another Washington state store, JJ Books in Bothell, had a more nuanced view. He has already signed up with the program and was featured on the Amazon site.
‘‘I have people coming in with their e-book readers to look at my books and then buy them online,’’ Mr Bailey said. ‘‘I may have helped sell the book, but I generated income for someone else. Now I have a chip in the game.’’
Amazon spokeswoman Kinley Pearsall said she didn’t have the total number of retailers in the program. ‘‘I can tell you anecdotally that the interest we’ve seen since announcing this has been very strong,’’ Ms Pearsall said.
Amazon has lost valuable real estate for its Kindle line of e-readers in recent years, as its brick-and-mortar competitors have dropped the devices from their stores. Last year, Target and Wal-Mart said they would no longer sell the Kindle.
The program, Amazon Source, lets stores either buy Kindles for a 6 per cent discount and receive 10 per cent of the revenue from e-books that customers purchase, or buy Kindles for a 9 per cent discount without any other payment. The cheapest Kindle is $US69 ($73). Most e-books retail at about $US12.
Frequently Asked Questions about this Article…
Amazon has introduced a program called Amazon Source, which allows independent bookstores to sell Kindle e-readers. The stores can either buy Kindles at a 6% discount and receive 10% of the revenue from e-books purchased by customers, or buy Kindles at a 9% discount without any additional payments.
Amazon has introduced a program called Amazon Source, which allows independent bookstores to sell Kindle devices. The stores can either buy Kindles at a 6% discount and receive 10% of the revenue from e-books purchased by customers, or buy Kindles at a 9% discount without any additional payments.
Independent booksellers have mixed feelings about Amazon's e-book deal. Some view it as a Trojan horse that could undermine their business, while others see it as an opportunity to earn revenue from e-book sales.
Many independent booksellers are skeptical and distrustful of Amazon's e-book deal, viewing it as a potential threat to their business. Some see it as a 'Trojan horse' that could undermine their sales, while others, like Jason Bailey, see it as an opportunity to gain a share in the e-book market.
Some independent bookstores are skeptical of Amazon's offer because they fear it could further erode their market share and view the deal as being complicit in their own decline, rather than a true partnership.
Some bookstore owners are hesitant because they feel the program benefits Amazon more than it does them. They are concerned about helping Amazon grow its business while receiving only a small portion of the sales, which they see as being complicit in their own business's decline.
Bookstores participating in Amazon's program could benefit from selling Kindle devices and earning a commission on e-books purchased by customers over the next two years, providing them with a new revenue stream.
Participating bookstores can benefit by earning a commission on e-books purchased by customers who buy Kindle devices from them. This provides an opportunity to tap into the growing e-book market and potentially increase their revenue.
Amazon's presence has significantly impacted independent bookstores, reducing their share of book sales from 25% to about 10% since Amazon entered the market.
Amazon's presence has significantly impacted independent bookstores, reducing their share of book sales from 25% to about 10%. This decline is attributed to Amazon's aggressive business strategies and the convenience of online shopping.
The Amazon Source program offers bookstores two options: buy Kindles at a 6% discount and earn 10% on e-book sales, or buy Kindles at a 9% discount without additional earnings from e-books.
Amazon has faced challenges with its Kindle line as major retailers like Target and Wal-Mart have stopped selling the devices in their stores, leading to a loss of valuable retail space for Amazon's e-readers.
Major retailers like Target and Wal-Mart have stopped selling Kindle devices, which has led Amazon to seek partnerships with independent bookstores to maintain a physical presence for its e-readers.
The sentiment among booksellers is mixed. While some are distrustful and view the offer as a threat, others see it as a chance to participate in the e-book market and generate additional income.
The sentiment among booksellers is divided; some are distrustful and view the program as a threat, while others, like Jason Bailey from JJ Books, see it as a chance to participate in the digital book market.
Amazon Source aims to benefit Amazon by expanding its Kindle sales through independent bookstores, while offering bookstores a chance to earn commissions on e-book sales, thus providing them with a new revenue stream.
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