Has the
vicious end game scenario we discussed just yesterday — whereby a government-sanctioned
Amazon.com makes its move to cement its position as the most colossal
monopoly in publishing history, and to savor the rewards — begun unfolding, and rapidly at that?
That’s what a
special weekend edition of
Shelf Awareness surmises. According to a report by SA editor
John Mutter, late Friday Amazon, apparently to take advantage of lessened weekend attention and the company’s upcoming endorsement from
President Obama …
… quietly began discounting many bestselling hardcover titles between 50% and 65%, levels we’ve never seen in the history of Amazon or in the bricks-and-mortar price wars of the past. The books are from a range of major publishers and include, for example, Inferno by Dan Brown, which has a list price of $29.95 but is available on Amazon for $11.65, a 61% discount; And the Mountains Echoed by Khaled Hosseini, listed for $28.95, offered at $12.04, a 58% discount; Lean In by Sheryl Sandberg, listed at $24.95, available for $9.09, a 64% discount; and The Fault in Our Starsby John Green, listed at $17.99, available for $6.55, 64% off ….
The discounts are far below the usual 40%-50% range sometimes offered by Amazon, warehouse clubs and other discounters and are more typical for remainders than frontlist hardcovers. In some cases, the hardcovers are priced below the Kindle editions.
At the moment, the extreme discounting seems limited to bestsellers. Still, that’s a large category, and a vital one to brick-and-mortar retailers, such as to Barnes and Noble, which has re-made itself into a chain that now consists mostly of bestsellers and merchandise, and to numerous indies that need bestseller sales to survive … which could make this potentially a devastating blow to those businesses, to say nothing of the damage it could do to publishers already feeling their books are severely under-priced.
It’s a dramatic enough move to prompt one prominent bookseller — Jack McKeown, who runs Books & Books in Westhampton Beach, New York — to tell Mutter that “It’s an open declaration of war against the industry.”
Why now? In a closing more strongly-worded than is his habit, Mutter cites McKeown and others speculating that …
… Amazon has been “emboldened” by the Justice Department‘s victory against five major publishers in the e-book agency model case as well as Wall Street’s acceptance of continued losses by Amazon for now in the expectation of retail domination–and major profits–eventually. This last point was seen most recently on Thursday, when Amazon’s quarterly results included a net loss and were below Wall Street expectations but did not provoke the usual rush to sell, as is the case with most companies whose results are disappointing.
Another possible reason for Amazon’s boldness is its apparently cozy relationship with the Obama administration–whose Justice Department pursued the agency model case, which mainly benefited Amazon. This relationship will be highlighted this coming Tuesday, when the president will give another major speech on the economy and aiding the middle class at, of all places, the Amazon warehouse in Chattanooga, Tenn. This is roughly equivalent of going to a Wal-Mart and calling for more of the kinds of jobs it offers.
All
notions that echo our
Friday commentary (and we couldn’t agree more with that last point — except to say Amazon takes reckless dis-concern for its labor to a level
unachieved by Wal-Mart). But as the
Shelf Awarenessreport adds, if this is indeed a sign that Amazon is playing out its end game, it’s happening much more rapidly than even we speculated, and with a dramatic dose of Amazon’s famous, always-surprising (in that it’s so unnecessary) thuggish chutzpah.
But here’s something perhaps even more surprising such a move could represent: Cause for optimism. ...
In addition, Prime Now has also moved into Brooklyn Heights, Downtown Brooklyn, Fort Greene, Clinton Hill, Park Slope and Prospect Heights in Brooklyn — but currently, only two-hour shipping is available in those areas. This might be enough to allow the notoriously fierce and fabulous Brooklyn independent bookstores to breathe a little easier.
Amazon plans to expand its Prime Now program not only throughout all of NYC, but into other metropolitan areas in the near future, but has declined to give any additional information.
So, how will Amazon’s fast delivery impact struggling bookstores, particularly Barnes & Noble?
Let us know what you think in the comments.
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