Book Publishers On the ECommerce Offensive
Recent weeks have brought us several stories about the trade book publisher Random House considering to sell books via the Internet thus creating a sales path that avoids giving a large percent of sales to retailers.
No large pubisher could survive (presently) without having a Barnes & Noble or Amazon type company doing the heavy selling. However, over time, it is not crazy to think that large publishing houses might be able to keep the bulk of every sale because of ecommerce initiatives aborning.
I recently read an interview with Jane Friedman, president and chief executive of HarperCollins. Two points were made by Friedman in a 10 November Wall Street Journal story:
1. "The Internet is a marketer's dream. For the first time you can actually know the people buying your books. It's much easier to reach people who like mushrooms by going to a mushroom site than by appearing on the 'Today' show....The more we can advertise directly to the consumer who is really interested in what we're offering, the greater sales we'll enjoy."
2. WSJ Interviewer: "Will there be any fallout if you sell directly [online]." Ms. Friedman: "None. If retailers are publishing books, publishers may have to become retailers. We need to get our books into the hands of readers to make our industry even healthier."
And this in the WSJ yesterday from Peter Olson, chairman and CEO of Random House Worldwide: "Random House is evaluating 'pricing and distribution models' a strategy that could one day include selling books directly to consumers online."
The Internet has changed many industries of which travel is the best example. Could the Net be getting ready to change traditional book selling --- the answer is a definite yes!
Jupitermedia CEO Alan Meckler
I've decided for the moment not to sell my spring-training book through the amazon.com and bn.com sites, despite a direct appeal from Borders to carry the book. (Amazon runs the borders.com site.) Why should I give a direct competitor a huge price break? My book is extremely profitable; my spring-training Web site and newsletter are a perfect platform for attracting customers. (Geez, using a high-profile Web site to sell other offerings -- where did I learn that from?) I work hard to attract my own customers, and I don't need to hand them off to a larger outfit that will undercut my pricing. The big boys are realizing this, and the article you cite is only the tip of the iceberg.
BTW, you certainly get to know your customers when you sell directly. I would never have guessed that 62 percent of my spring-training book purchasers were women, for instance, and I'm adjusting my marketing accordingly.