Online Alliances: Deal With the Devil or Pact for Profits?

Kate Whouley writes:

First, let's acknowledge my two hats. For 19 years, I've worked as a consultant to independent bookstores. And I write books.

As a general rule, I wear only one hat at a time, but there are occasions when--despite my best wardrobing efforts--I discover both hats battling over the space on top of my head. That's exactly what happened while reading the New England Independent Booksellers Association listserve responses to Elizabeth Bluemle's question to members, "Do you get promo e-mails listing Amazon?"  

The co-owner of the Flying Pig Bookstore, Shelburne, Vt., recounted her recent experience with just such an e-mail she received from an author. She included in her posting a copy of the e-mail she sent back, suggesting that "at the very least" the author provide "an alternative link to BookSense.com." Her note was brief, friendly, but unsubtle in its implication. She wrote: "I'm sure this was an oversight, but it is one that will be noticed (and not favorably) by other book buyers (and sellers) in the field."

Wearing my consultant hat, I was pleased to see Elizabeth defending her turf, but I wasn't sure her tactics would have much effect. While most authors possess at least some theoretical awareness of the importance of supporting independent bookstores, they aren't always clear on how to offer such support. That's why I was glad that Elizabeth suggested that the ABA and NEIBA remind those who rent association mailing lists to include a BookSense.com link and to use the phrase, "available at independent bookstores" in promotions and on Web sites.  

Becky Dayton of the Vermont Book Shop, Middlebury, Vt., echoed Elizabeth's frustration, mentioning, in her posting, a recent round of e-mails with author Bill McKibben. She reported that he made some changes on his homepage to include a BookSense.com link as a result of their exchange, but, as she noted, "when you go to his 'books' page, the purchase option is strictly through Amazon." Becky wondered how much publishers dictate what is on their authors' Web sites, and whether Amazon's power over publishers influences what they tell authors to do.  

I can't speak for Bill McKibben, but--switching hats now--I can say the only suggestion Random House made to me was that I get my author Web site up and running before the paperback launch of Cottage for Sale. My site was created and financed without any support--or interference--on the part of the publisher. It's true some big-league authors have publisher-based sites, but many more authors create and manage their own headquarters on the Web. And so far as I know, Amazon isn't twisting any arms to get authors to link to the giant e-tailer. Why do authors do it?

From an author's point of view, Amazon is the ultimate supplier. More often than not--especially for newer titles--it has your book in stock and will ship it, pronto. While we all hope that our books will be "available at independent bookstores," the very independence we support means that some stores will choose to stock the book and some will not.

Michael Herrmann of Gibson's Bookstore, Concord, N.H., responded to Becky Dayton's posting, saying that after his own e-mail exchange with poets.org, he realized, in his words, "The economics were unmistakable . . . Poets.org was making more in a month from Amazon than they made in three years from a previous BookSense link." He suggested that authors were faced with similar economic choices.  

Though I can envision a day, when--as it has for recording artists--this might change, I don't think the majority of visitors to author Web sites are there to make a purchase. In my experience, they learn about the Web site from the book they already own or have on loan from the library. They visit to learn more or to connect with an author whose book they have enjoyed.

The economic advantages to any single author may be minimal, but Michael's right that public radio stations, non-profit groups and any number of organizations who might otherwise affiliate with a community bookstore, choose to link with Amazon for financial reasons. His comments prompted a posting from Chris Haraden, co-owner of Westwinds Bookshop, Duxbury, Mass. A bookseller with a BookSense.com Web site, he wondered whether independents might "consider an alliance with one of these larger, better-branded sites."

The next posting, from Kenny Brechner, of DDG Booksellers in Farmington, Me., opened with this caveat: "Judging from literary precedents, I'm not sure that bargains struck with agents of the netherworld have turned out to the advantage of the weaker party."

Would the working partnership Chris Haraden suggests be the proverbial pact with the devil?

This sort of online alliance was envisioned at the outset of BookSense.com. At one of the earliest "demos" of BookSense.com, I remember the ABA was suggesting that Web site orders could be filled by a national wholesaler and drop-shipped directly to the bookstore's customer. This was early in the race to the Web, at a point when many independents were unconvinced there was any reason for them to go online at all; perhaps timing explains why most of the booksellers in the conference room were appalled. "Why not ship books from our own stores? Or deliver them? Why let a wholesaler ship books that I have in stock?" The booksellers in attendance were also upset when it was suggested they could sell books online at a discount. "Why would we ever discount?" they asked.

"To compete with Amazon and other online discounters," was the answer.  Further--and this point is important: "Because you can."

If you have a deal with a national wholesaler--or, humor me for a moment, a national e-tailer like Amazon--you can afford to discount the books sold (and shipped) through a Web site, because you don't have to purchase or stock or deliver those books yourself. It all happens in a magical backroom that is not yours. You are simply the agent, the connection for your local customer, who feels better about doing her "one-click ordering" in a way that keeps her local independent bookstore alive. All you do is cash the commission check. Sure, your slice is a small percentage of the retail price, but a glance at recent ABACUS results--wearing the consultant hat now--tells me that a little bit of unfettered income could go a long way toward improving the miniscule bottom line of most independent bookstores.  

There's something else Amazon has going for it: the company makes it easy to click and buy. That's why even the most loyal independent bookstore customers occasionally purchase from the online competition. In investigating the BookSense.com option for my own site, I found it required a series of extra steps for the customer to find a local bookseller who may or may not stock the book. I decided to forgo both e-commerce options. But if BookSense.com were electronically connected to an Amazon-like warehouse, customers would be able to buy with ease and with the conviction they were doing the right thing.

Deal with the devil? Or pact for profits?

I don't pretend to know for sure. But I do believe Chris Haraden's suggestion is worthy of diligent investigation. The ABA was ahead of its time those many years ago. Scaling back the BookSense.com concept earned them more bookseller customers with less overhead. It made sense at the time. But making sense--and money--in today's online world, may require looking back and looking forward, in order to arrive at a model that creates profit for independent bookstores in the present and ensures their electronic sustainability for the future.

Kate Whouley heads Books in Common and is the author of Cottage for Sale, Must Be Moved.
 

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