Here is a recent article from E-Commerce Online. This discusses the very big news about how Borders bookstore recently ended its relationship with Amazon.com. They decided to sell books online for themselves, instead of having someone else do this for them, which they had done for many years in the past.
This article begins by discussing how Borders felt that it needed to venture out on its own and begin selling books online directly to the customer. The new site is predicted to be out early next year. They feel that, though it is a large and complex task, it will be worth it financially in the future. It talks about how Borders once known partner, Amazon.com, is now their biggest competitor. It points out very good point though. One big selling advantage is the ability to reserve books online. This creates a quicker service for the customers who do not want to wait for shipping. Borders will also offer internet rewards and letting the customers in Borders to go the the website and reserve specialty books. It finally goes on and states an option that they could have done. The article suggested maybe to allow customers to make purchases on Amazon.com and then go to a nearby Borders to pick up the items. This creates a quicker service for the customers who do not want to wait for shipping.
This is a very risky business proposition for Borders considering how well known Amazon.com is, especially with its recognition for selling books. We believe it will be tough, especially at first, for Borders to gain market share. They must push the aspects that differentiate them from Amazon.com and utilize the savings of selling directly to the customer. This might allow them to offer a cheaper price or to create a higher profit.
We felt the suggestion in the article, about using Borders as a place to pick up Amazon.com item, is the best way. We don't blame them for trying something because their profits, along with most of the other businesses in the book selling industry, were falling. We think that if Borders online can make it through and stay afloat in the near future, they should be able to compete with Amazon.com. This could be bad though if Barnes and Nobles, the number one book selling store, follows this trend. What would Borders do then?
Click here to read the article:
http://www.technewsworld.com/story/Nmhf2i7rEGRh7L/Borders-Dumps-Amazon-Heads-for-Web.xhtml
Saturday, March 24, 2007
Subscribe to:
Posts (Atom)
