“I’ll just get it on Amazon”. Whether you’re looking for a book that’s brand new or centuries old, in English or another language, you’re usually able to find it on Amazon. As an e-commerce giant, Amazon accounts for around 50% of print book sales in the UK alone, making it a vital partner for publishing houses. However, last week Amazon threatened to remove all Bloomsbury titles from their website due to a trading disagreement. Though quickly resolved, the disagreement highlights Amazon’s intimidating market power.
What Happened?
On 23 January, Amazon UK announced that they would cease selling both print and e-books published by Bloomsbury. The online giant claimed that their contract with Bloomsbury had expired last year and because Bloomsbury had allegedly refused to engage in negotiations, Amazon UK would no longer sell Bloomsbury books. Users would still be able to buy Bloomsbury books on the online-selling platform through independent sellers but not through Amazon themselves. With bestselling authors such as J.K. Rowling and Sarah J. Maas on their roster, Bloomsbury is a well-known and well-respected publisher which made Amazon’s retaliation a risky move, however, it ultimately worked in the latter’s favour.
Just a few hours after the original announcement, Amazon issued an update that an agreement had been made between the two parties. Though Bloomsbury titles never left Amazon, the possibility they could have highlights Amazon’s brash hand in the book market where even a Big Five publisher such as Bloomsbury has limited power.
Amazon’s History of Heavy-Handed Tactics
This is not the first time that Amazon has used controversial negotiation methods with publishers. In 2014, the online retailer had a dispute with Hachette regarding online and e-book sales which lasted eight months. The battle revolved around Amazon’s desire for pricing control over Hachette e-books. Hachette eventually retained the right to price their e-books but only after enduring several of Amazon’s “aggressive” negotiating tactics which included preventing Hachette title pre-orders and delaying Hachette title shipments. These actions led to an estimated 18% decline in Hachette sales over the months of disagreement.
At the time, a group of authors including Barabara Kingsolver, Donna Tartt, and Stephen King, formed a group called Authors United in support of the publisher. Led by Douglas Preston, over 900 authors signed a letter imploring Amazon “in the strongest possible terms to stop harming the livelihood of the authors on whom it has built its business.”
Monopolising the Market?
When Amazon first launched in 1994, its only product was books. Since then, they’ve expanded their product range to include anything and everything from toys and games to tech. But, they still generate an estimated $28 billion annually in book sales and are responsible for several book market innovations including the Kindle for e-books and Audible for audiobooks. With limited overhead costs, Amazon can often sell books cheaper than other retailers and this is why they are a marketing giant that even the biggest publishers can’t afford to lose.
Amazon even offers authors the chance to self-publish through Kindle Direct Publishing. Boasting that authors may generate up to 70% royalties on e-books compared to an industry-standard 25%, KDP transforms Amazon from a cut-throat business partner to publishing houses to their direct rival.
From its origins, Amazon described itself as “the world’s largest bookstore”. But, by using tactics to freeze out competitors and suppliers alike, does Amazon want to be the world’s largest bookstore or the world’s only bookstore?
Words by Jennifer Cartwright