Price Importance in the Book Market – Why buy books at Borders?
Efficiency & Allocation, Retail June 28th, 2008Given the vast discounts you can get by buying books on Amazon.com, why do people buy books at bookstores anymore? It doesn’t quite make sense to me. Obvious advantages of brick-and-mortar book stores are the environment, friendly service, and the ability to see books before buy. Obvious advantage of Amazon.com is the ability to buy a book in 5 minutes from the comfort of your own home.
Now I frequent bookstores quite a bit – twice a week, sometimes more – simply because I love the environment and the ability to sit down and ready a book while drinking coffee at a spot away from home. But rarely do I actually ever purchase a book at a book store. Typically I’ll go to a bookstore and look through any book I’m thinking about buying, note the title, then go straight to Amazon.com and order them. More than once I’ve actually ordered books from of Amazon.com while sitting in the cafe on my computer of Borders or Barnes & Noble.
I could see perhaps a 10% price difference being counteracted with the advantages of brick-and-mortar stores, but Amazon’s discounts are usually an effective 30-40% or more (especially after no sales tax in many states). This is a huge price difference and in any other industry I don’t think producers offering significantly higher prices for identical products would be in business much longer.
Although I really am stumped as to why this occurs, one potential answer is simply the culture – older generations are used to stopping by their neighborhood book stores to pick up books. With smaller bookstores, peoples’ claim to “support their local community” might also explain some of this (while even then people’s actions with their wallets tends to contradict what they say), but are you really supporting your “community” by buying books at large changes like Borders or Barnes & Noble?
Among younger generations the most plausible explanation is simply a string desire to have the product immediately. It’s the same reason why many people buy stuff at stores like Circuit City even though the same product is available through the internet (at sites such as NewEgg) for significantly cheaper – they inherently place a high value on having the product in their hands immediately; they don’t like to wait.
Given this last point, it is truly phenomenal to me then when I hear (often) a bookstore employee telling the person that the book they are looking for is out of stock but that they can order it for pickup or shipped directly. Doing this completely takes away the “have it now” advantage of brick-and-mortar stores, so why would anyone ever actually say yes to having Borders order a book for you at list price when you go go home and order the same book delivered right to your home through Amazon? This truly makes no sense to me, the only explanation being some peoples’ lack of facility with computers (though navigating Amazon isn’t rocket science).
If you’re an avid book reader and buy books at Borders or Barnes & Noble, why don’t you just buy them from Amazon?

July 12th, 2008 at 7:20 pm
I often buy books at Border or B&N for the instant gratification of having the book in hand, even though I know I could save some money at Amazon. Soemtimes I just don’t want to go through the “hassle” of going on online and proceed through the whole ordering process. Rather, I can just pick up the book, pay, and leave the store. There is also something about the physical quality of the book which makes me more inclined to buy in store and also has to do with me not getting a Kindle yet..but I imagine that’s a discussion for another day =p
September 17th, 2008 at 5:44 pm
You love the bookstore, but you purchase from amazon? I’d be curious as to how you feel you are supporting the experience that you enjoy – while putting that exact experience up for sacrifice by purchasing online.
December 29th, 2008 at 10:32 pm
I sometimes do the same but whenever I do so I feel I’m giving in to my own impulses. I have to really stop and ask myself if having a $40 book I could get online for $27 immediately relative to 3 days from now is *really* worth $13. Most of the time it isn’t.
And it being a hassle is all relative. If I’m sitting at home working on the computer as I usually am, it’s far more of a hassle to drive to Borders, often times consuming more value of my time than the price of the book. If I’m already at the mall than perhaps it’s less of a hassle but in either case I think most of the purchases at stores charging retail is impulse buying or people who aren’t even aware buying online literally affords discounts of 20-40%.