Two decades ago, the appearance of electronic books made the paperback industry fear for its future. The decline in sales didn’t last long. In the next decade, paper books will still be sought after and hold a major market share, alongside their online alternatives. Currently, the use of AI technologies is being explored to enhance the work of online bookstores and digital marketplaces for reader engagement.
About the reviewer
Cynthia Turner, business plan writer at OGS Capital, is an expert with development of strategies for small-to-medium sized businesses and creating content strategies to increase a company’s involvement in the community.
Online bookstore vs an offline marketplace
Individual bookstores have personalities, and customers come for their atmosphere, book selection and personal bonds. Bookstore chains are basically supermarkets, but for books. Ironically, if a customer is looking for something peculiar, he’ll most likely find it at an independent bookstore as opposed to a chain store. Online bookstores have their advantages; however, it is still uncommon for a bookstore selling paper copies not to have a physical bookstore. For instance, an online bookstore will have a greater reach among its target audience.
Market analysis and comparison of available bookstore business plans with an online bookstore business plan will help an entrepreneur understand the differences between running a physical bookstore and a digital one.
Drafting a delivery policy for an online bookstore
A digital marketplaces should address and resolve concerns about orders and delivery, such as:
- Establishing a delivery and returns system and policy;
- Insurance against books getting lost or stolen;
- Packaging to avoid books getting damaged;
- Varying costs for delivery;
- Processing payments.
Opening an online bookstore for niche content
Digital marketplaces make it possible to open an online bookstore that specializes in a limited scope of literature and targets a specific kind of reader. For example, an online bookstore of poetry is a feasible digital marketplace startup, but it is a risky investment for an offline bookshop.
A digital marketplace allows an entrepreneur to build a vast selection of niche content, offer shipments worldwide and target a specific group of customers regardless of their whereabouts.
Conclusion
Independent offline and digital bookstores still face competition from online giants, such as Amazon, in terms of pricing, deliveries and customer service. The battle between paperbacks and Kindles continues. Algorithms used by online marketplaces for books to adjust listing prices are still not ideal, allowing ghost listings to bring down the value of a book. There is still a lot of uncharted territory when it comes to selling books online. The online bookstore market, especially in niche segments, is fast-growing and is a good investment for a book lover who wants to start a business.