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Case analysis - Assignment Example

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However, the trends on sales of book have seen a considerable shift due to the advancement and changes in technology. Used books have been used through used books stores and this has usually…
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Download file to see previous pages During the same time 2011, the internet sales increased by 12%. By 2004 online sales made 50% of the total books sold in the US. Currently, websites owned by independent used books account for 9% of total books sold online. Currently, Amazon is the leading online bookseller of used and new books. There has been lots of competition with many authors opting to include shipping costs for their consumers in order to increase their sales. Ironically, most of the consumers preferred purchasing used books due to their low prices. It is argued that despite the book being used the information still remains the same. According to reliable sources of information Amazon generated 49% of its revenue through sales of used books.
By 2010, most of the consumers used bookstores as their main sources of book which accounted for 30% of total sales. During the same year34 million customers bought books online. For quite a long time Amazon has been dominating this business since its inception in 1995. The entry of Google Books in the field of online sales and books is also creating competition (Deahl). This is because Google enjoys the largest search engine in the world and their ability to provide online books at cheaper rates is creating a lot of competition for Amazon and other booksellers.
Bookstore channel made significant strides and more sales with American company Barnes and Noble enjoying up to 1,700 stores in the US which accounted for 30% of total sales in the years 2010. In the previous year 2009 the company was the best seller of online books which accounted for $5.8 billion and an operating profit of 0.63%. Amazingly, only 10% came from online shops while the rest were made from the physical bookstores which are spread all over US. The bookstores were large enough ranging from 3000 square feet to 60,000 square feet meaning that the stores could make up to 200,000 different titles in their shelves. The increase in sales and ...Download file to see next pagesRead More
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