Selling Books Online Exploiting Content On The Web For Publishers Conference Tuesday 2nd October 2001 Kieron Smith Head of Internet Site Management BCA

“Since May 1999, average selling prices throughout the book market have fallen from £7.29 to £7.03, down three per cent. In the direct-to-consumer market (excluding Internet) – mail order, book clubs and publisher direct – prices are down 14% and, on the Internet five per cent lower.” Philip Wisson - Marketing Week

“One of us recently went to purchase The Anatomy of Buzz, a business book about word-of-mouth marketing. The site promptly suggested we might like Gray’s Anatomy too. Gaffes like this teach customers not to trust a web site’s recommendations.” Paul F Nunes and Ajit Kambil - HBR

Book Buying Offline Advantages:Disadvantages: Able to relax and browse freelyPrice seen as higher (full retail) Wide choice close at handChoice can be limited by size of the shop, despite growth in large stores Increasingly knowledgeable staffGetting to the shop in busy lives, including parking, ordering and returning to collect Even if not in stock books can be supplied Whilst pleasant it becomes time quicklyconsuming

Book Buying Online Advantages:Disadvantages: Review and suggestions Perceived difficulty of (esp. Amazon) browsing Ease and convenience – some are happy toFears of credit card admit they are lazy security Frequently cheaperUnable to “test read” Home or office delivery likedUnable to pick up books and read the back cover Time-saving in busy livesHave to wait for post Some novelty value in (esp. in early majority)

Dick Brass Microsoft’s vice president of technology and development, has said that by 2020: “90% of everything you read will be delivered in an electronic form.” Anderson Consultant’s estimate that ebooks will be 10% of book sales or $2.3bn (in the US) by 2005

“E-books are solving a problem that consumers don’t have” David Streitfied writing in the Chicago Tribune

Likelihood of Payment Bandwidth Content Type Text/ebooks News Music Porn Movies High Low Kieron’s ‘Will They Pay For It?’ (WTPFI) Model LowHigh

Conclusion Whatever the future for books as a product the real future for selling them online is through building multi channel customer relationships. Provide different channels to suit all the different ways that people shop Emphasise the relationship over the transaction Increase total revenue per customer Deliver excellent customer service though and across all channels