Friday, 16 October 2009

Wal-Mart & Amazon Are At War – Book War That Is….

Do I care – yes I do, as a reader definitely – as this is a campaign targeting directly at my pocketbook. But from the stand point of the authors and other people surrounding the book industry how does this price slash affects them – if the likes of Amazon & Wal-Mart are slashing price to at least 60% of market value.

Wal-Mart.com launched a brash price war against Amazon.com Inc, when it announced it would sell top10 pre-selling books for just $10 each.

According to AP, the online division of Wal-Mart Stores got things started on October 15, offering $10 prices on such upcoming hardcover releases as Sarah Palin's "Going Rogue" and John Grisham's "Ford County," a cut of 60 percent or more from the regular cost. Wal-Mart will also offer free shipping.

Amazon.com, the largest online bookseller, matched the $10 price, prompting Wal-Mart to take its offer to $9. By Friday morning, Amazon.com also had priced the books at $9, the same source reported. The price cuts come at a time when Seattle-based Amazon.com and other sellers have been charging just $9.99 for ebooks, a price that publishers worry is unrealistically low. The reductions also make it increasingly hard for independent sellers, which can't afford such large discounts, to compete for the most popular books.

Financial

 

At the time of post  - “Going Rogue – Sarah Palin” is being sold on pre - order for 9 Dollars, but will that price hold or will these two giants in the book industry lock horns and push the price further. And how does this battle impact other stores

Wal-Mart  -  http://www.walmart.com/catalog/product.do?product_id=12558252

Amazon -  http://www.amazon.com/Going-Rogue-American-Sarah-Palin/dp/0061939897/ref=sr_1_1?ie=UTF8&s=books&qid=1255711916&sr=1-1

 

The price war also is forboding news to the large chain bookstores Borders Group Inc. and Barnes & Noble Inc., which have been squeezed by Amazon.com's discounting and a decline in their music business.

"At Walmart.com, we remain committed to providing our customers with the lowest prices available online. That commitment extends to the nation's best-selling books, especially during an increasingly challenging year for many of our customers," Raul Vazquez, Walmart.com's CEO, said in a statement.

The Star.Com

For the obvious reason of size, these two have the where with all to slash price and keep it down for how long we don’t know. These two might just be working towards the same agenda – getting the customer in – but at what cost, because someone is going to lose out.

 

In a new program called “America’s Reading List,” Bentonville-based Wal-Mart also will offer 50 percent off or more on 200 current best-sellers, including Dan Brown’s “The Lost Symbol” and Kathryn Stockett’s “The Help.”

Booksellers have fought hard to bring in customers for blockbuster releases such as Brown’s “Lost Symbol” and the “Harry Potter” stories, offering reductions of 50 percent of higher. But Wal-Mart’s announcement suggests a broad, sustained race for customers at prices few can afford to offer.

Arkansas Online.com

 

11 Speak To Me:

Lea on 16 October 2009 at 22:20 said...

Great post EH with perplexing questions. I think you are quite correct, someone will lose out in this situation. :(

Lea on 16 October 2009 at 22:20 said...

PS: I'm liking the new blog look.

L

Lily on 17 October 2009 at 00:36 said...

First, I love the new look.

This is an interesting post. I rarely buy books in print and while saving money is always a good thing I can't help but wonder how this will end. As the super stores slash prices the effect could be very bad for the smaller places, especially if the price war last for a while. I guess we'll have to see how it goes in the future.

Smokinhotbooks on 17 October 2009 at 01:56 said...

Great post! Is Walmart tyring to compete with Amazon's online bk purchasing on in-store?

Ava March on 17 October 2009 at 04:07 said...

What depressing news. No one ever wins when two giants engage in a war. The whole market loses and everyone in the supply chain, with those at the beginning of the chain hit hardest as prices are squeezed at every step along the way. Not to mention the effect the price war has on smaller competitors.

As an author, it's depressing how much power the mass merchants have. Publishers covet their volume, and once they get a taste of it, they don't want to lose it. Volume is a powerful thing.

There are reasons why I don't buy books from Walmart or Amazon, and this is one of them. I don't care if Walmart is selling a book for $5, I'll pay $20 at a bookstore for it.

Fab post, E.H. and I love the new look!

Erotic Horizon on 17 October 2009 at 13:48 said...

@Lea..

Yup someone is going to lose out and I fear to think it will be the authors as everyone is going to want a piece of the pie - but the authors are the one ultimately who will lose out the most..

Thanks as well about the blog - I am liking these colours at the moment..

E.H>

E.H>

Erotic Horizon on 17 October 2009 at 13:53 said...

@Lily...

This is me fiddling around with colours...

I agree with you wholeheartedly... I also don't buy a lot of print, but some of my fav author do come out in hardback and I fear how this will affect them...

E.H>

Erotic Horizon on 17 October 2009 at 13:55 said...

@ Smokinhotbooks

Not sure what happened to start it off - but these two have so much clout - I will be watching to see where these two take it - and of course how it will affect my little Borders store...

E.H>

Erotic Horizon on 17 October 2009 at 14:00 said...

Hey Ava...

Glad you stopped by - I was hoping for a voice from an author on this matter...

And I agree with you - the people at the end of the line - like yourself - are the ones squeeze the hardest...

And imagine - it's all YOUR WORK in the first place...

Sad day for the book industry...

Sad day

E.H>

Blodeuedd on 17 October 2009 at 17:21 said...

First up it sounds good, but then I think about the authors. They don't make enough now so what about later

Erotic Horizon on 17 October 2009 at 17:55 said...

@Blodeuedd

Thats just it - my pocket book loves the idea - but if i want to support authors and their endeavors to keeping giving us these wonderful tales we love - how will this affect them...


E.H>