Why Amazon is opening a bookstore
Amazon just opened its first brick-and-mortar bookstore in Seattle called Amazon Books. To many who believe that we live in a post physical store world, it doesn’t make sense. However, the reasons becomes clear if you just do the math.
In 2013, Amazon had 65% market share of online book sales. That same year, e-commerce accounted for just more than 50% of all book sales. So Amazon accounts for something like 32.5% of all book purchases. Put another way, online customers are likely to buy a book from Amazon. But all customers are likely to buy a book somewhere else.
That may seem like a lot, but book sales are completely flat. So the book market has become a zero-sum game where one company winning means someone else is losing. There’s no rising book tide. And there’s certainly no evidence to suggest that Amazon is just sitting pretty with 32.5% of the market.
To grow their book sales,...
Continue reading →