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Barnes & Noble, Inc. Message Board

  • boringtechy boringtechy Jul 9, 1998 11:18 PM Flag

    Why We'll Win and Amazon Will Lose

    Fortune - 9/29/97

    Amazon stocks just a
    limited number of bestsellers (the
    company won't
    disclose how many) but for the most part obtains
    from wholesalers or publishers after receiving an
    B&N, on the other hand, generates such volume
    in its real-world
    stores that it has become,
    effectively, its own giant wholesaler. It deals directly with
    publishers, cuts out the middlemen, and stocks its central
    warehouse in New Jersey with 400,000 frequently ordered
    titles. Consequently, observes Craig Bibb, a Paine Webber
    analyst,"Barnes & Noble crushes Amazon in speedy delivery."

    Barnes & Noble can also afford to give readers books at
    bargain prices. Since it sells more books than anyone
    else, it gets the best prices from publishers. Barnes &
    Noble launched its site with 30% discounts on all
    hardcovers. Amazon was forced to match the cuts. And the
    pricing wars have just
    Long term, we win. We have deeper pockets, better
    prices, and higher margins on the books we do sell (if
    online store if separated from the hard stores).

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