Barnes & Noble forgets it has an online business

by Libby Sternberg

First came the digital revolution with Amazon leading the charge. No longer did readers have to browse bricks and mortar bookstores looking for a specific read. Amazon brought it to their fingertips.

Then Amazon pushed the revolution farther still when they realized their customer base included writers and not just readers. The bookselling behemoth reached out to writers, making it easy for authors to self-publish and reach readers on their own without a publisher middleman, and offering them royalty deals no publisher would ever dream of handing over to a lowly scribe.

But what about print? Authors love the feel and smell of a print book. Amazon had that covered, too. Through their CreateSpace services, authors can easily upload their manuscripts, even design a cover (or contract with Amazon's services for one) and, voila, within an amazingly short period of time--nothing at all close to the year-long wait most authors face from signing a publishing contract through til actual publication--a print book is in the writer's hand.

These innovations have also made it much easier for small publishers, such as Istoria, to get up and running, securing a boutique position in the publishing marketplace.

Amazon's innovations have been applauded by everyone in the industry.

Uh, no, scratch that. Actually, several of the Big Six (make that Big Five now) publishers allegedly colluded with Apple to keep ebook prices higher than Amazon wanted. In the ensuing legal battle, Amazon was treated like the Big Bad Evil Corporation Out to Destroy All that Is Good and Holy about Books (BBECODAIGHB, for short).

Speaking of BBECODAIGHB's, though, one of them used to be Borders.. Remember Borders--the Big Box bookstore everyone loathed for quite some time, seeing in it portents of the End of Bookselling as we know it? Funny how that attitude changed when Borders went belly up. Then, everyone was mourning the loss of this bookselling giant.

Now the only bookselling giant on the block is Barnes & Noble. B&N got into the digital field with the Nook (see this post about a marketing opportunity the Nook missed), but they've not embraced the other parts of the digital revolution as nimbly as Amazon.

And the latest news from the B&N front is this: they're limiting Simon & Schuster titles in their store because the publisher won't dance to their tune on ebook discounting and "costs associated with in-store promotions," according to a Wall Street Journal article today.  In-store promotions, by the way, include publishers paying for where books are displayed. Don't assume when you go in a bookstore that the managers and staff choose which books go on the tables that catch your eye. Publishers pay for that in-store real estate.

Anyway, according to the article, B&N "worries that consumers use its stores as 'showrooms' to find titles that they then order online at a discounted price."

Sure would be helpful if B&N also had an online business, too, wouldn't it? Then customers who can't find books in their stores could order a book through the B&N online service. They could have a short and snappy URL, too. Oh, something like, maybe, www.BN.com? Just sayin'....



The cheese stands alone

Sarcasm aside, if Barnes & Noble is worried about losing customers to online retailers who can offer discounts, why doesn't B&N beat those etailers to the punch? When you walk in the door to a Barnes & Noble store, you should be walking in the door to their entire inventory, whether it's in the physical store or online.

Okay, for free, B&N, here are some ideas:

In every store, vigorously promote this slogan: Can't find it on our store shelves? Buy it on our eshelves! 

And then place computer screens around the store -- how about at the end of every other bookshelf?  And next to those screens (which are only linked to the BN.com website, of course) place coupons with discount codes for various genres. Mix it up, changing the discounts from week to week. It will draw folks in to see what kind of deal they can get the next time they come in. Even if some folks think they can get a better deal elsewhere, there is nothing like taking care of a purchase when you're thinking of it.

Barnes & Noble now stands virtually alone as the one bricks-and-mortar Big Box bookstore in the U.S. That's a tremendous advantage. They should stop sniping at publishers and competitors and start thinking about how they can use their advantage to attract customers to their physical and online stores.
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Libby Sternberg is a novelist and editor-in-chief of Istoria Books.
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Nook misses its niche

by Libby Sternberg

The news in the publishing world is that Barnes & Noble's tablet/e-reader, the Nook, didn't fare so well sales-wise this past year.

According to an article in the Wall Street Journal last Friday, "Nook revenue plunged 26 % to $316 million for the fiscal third quarter ended Jan. 26 and the segment posted a larger loss." 

While Nook languishes, profits have improved at its retail stores business. In other words, folks might not be buying Nooks, but they are buying books.

A day before the negative Nook news appeared, another story circulated: B&N's former owner and now chairman and largest shareholder, Leonard Riggio, wants to buy the company's retail assets. This means the Nook side of the business would likely be separated from the general retail side.

This represents something of an about-face for Mr. Riggio, who introduced the new B&N CEO William Lynch three years ago by saying the chain needed to be "more than a retail bookseller." Mr. Lynch had come from a tech background, and, according to news reports, spent "almost all of his time" on the digital side of B&N's business.

Now it appears that time was ill-spent. Nook never managed to capture the e-reading public's fancy in the same way the Kindle has, or even the way the iPad and its newest iteration, the iPad mini, has.

Why not? The Nook is a solid e-reading device. Although I'm in the Kindle camp, a close relative has a Nook tablet, a gift she received about a year ago. She checks her email on it and surfs the web when traveling. And, oh, yeah, she can read books on it, too.

She's not a techie--neither am I--so I have no first-person analysis of the relative advantages and disadvantages of Nook vs. Kindle vs. iPad (another close relative owns one of the latter--and asked for a Kindle as a gift within a few months after discovering that reading ebooks on an iPad in bright sunlight is a bear).

Therein, however, lies an advantage for the Nook that has never been exploited, certainly not in any promotions I've seen. If anything, after seeing a Nook ad, it's hard to remember if it was for Nook or Kindle.

The advantage for my relative with the Nook was this--she's no techie, as noted above, so when she went to set up the device, she immediately hit the brick wall of tech blah-blah-blah, the usernames, the passwords, the configure-this and download-that. She has little patience for all that. So, she took herself and her Nook to the nearest Barnes & Noble store where a real-live person cheerfully helped her set it up. A real live person--not a name at the end of an email or a voice on the other end of a phone! She loved this aspect of owning a Nook. Amazon's customer service might be good, but nothing beats talking to someone face-to-face.

So, my question is: how did Nook miss this promotional niche? They certainly used up a bunch of precious store real estate on Nook displays. Why didn't they market the fact that while Amazon's Kindle does everything a Nook does, Nook has real people to talk to when you have questions, problems or even suggestions. People who happen to be in their...stores. Smiling at you. Waiting to talk. And, you might buy some print books while you're there.

That seems to me a tremendous marketing advantage Barnes & Noble never even mentioned, let alone exploited.

Mr. Lynch might have missed the proverbial forest for the trees. He didn't see the vast opportunity Nook had to attract non-techies (the majority of folks who probably use these devices) to his product.

But who am I to suggest what captains of industry should do? Just a lowly editor who likes to occasionally mouth off on what's wrong with this business or that one.

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Libby Sternberg is editor-in-chief of Istoria Books. She is also an author.