Writers Tricks of the Trade Volume 6 Issue 2 | Page 34

ON AMAZON STORES AND PUBLISHERS ACCEPTING STANDARDIZATION; TWO UNRELATED COMMENTARIES Mike Shatzkin offers his insight about what is going on with Amazon and brick and mortar stores. The Shatzkin Files is consistently an interesting source of information, and this is a reprint from his blog dated February 10,2016. When the “Amazon-opening-400-stores” rumor landed a week ago, many people were gobsmacked. It took me a minute to get past that, which also required getting past my firm conviction when they opened the Seattle store last year that it was an information-gathering exercise, not the opening move of a bigger retail play. But, when you think it through, it not only doesn’t seem crazy that Amazon would open stores, it seems like an obviously compelling move. Other retailers that started strictly online have opened retail locations, most notably the eyeglasses shop Warby Parker. (This New Yorker story mentions that. It also has an interesting disclaimer at the end because “Amazon Studios is producing a New Yorker series in partnership with Condé Nast Entertainment”. Wow.) “Omni-channel”, which is really a new-fangled fancy term for selling both online and through a brick store, is the buzzword du jour of retailing. Actually, the online piece of that is the harder part and Amazon already had that licked. Barnes & Noble “beat” Borders largely because they had a network of distribution centers that made stocking their retail locations extremely efficient. Amazon’s network of distribution centers is complicated because it isn’t just books, but they have many times the number of points of inventory storage as B&N. In fact, they have many times the number of storage points as B&N and Ingram and Baker & Taylor combined! Amazon has tons of information that nobody else does that would inform their stocking decisions if they harnessed it. They know where searches are coming from for particular book titles or for generic needs, both geographically and psychographically. And they probably can detect early lifts for particular books faster than anybody else, simply because they have more data. Mike Shatzkin Mike Shatzkin is the Founder & CEO of The Idea Logical Company and a widely-acknowledged thought leader about digital change in the book publishing industry. In his nearly 50 years in publishing, he has played almost all the roles: bookseller, author, agent, production director, sales and marketing director, and, for the past 30 years, consultant. His insights about how the industry functions and how it accommodates digital change form the basis of all of the company’s consulting efforts. Read more about Mike Shatzkin. It is possible that if B&N and the indies had responded differently to Amazon Publishing, agreeing to stock the books rather than boycotting them, this could have played out differently. (No stronger argument could be made MARCH APRIL 2016 RITERS’ TRICKS OF THE TRADE for the- efficacy of that strategy than this post arguing that storesWshould PAGE 24 stock Amazon titles to punish them because the returns would make them unprofitable! You can’t beat logic like that.) If the stores had stocked their