Barnes & Noble CEO James Daunt has highlighted what he sees as a key weakness in Amazon’s approach to bookselling, despite the e-commerce giant’s dominant position in the market. While Amazon sells
approximately 700 million books annually and controls roughly half of all book purchases, Daunt argues that the company’s relationship with books lacks genuine passion.
Amazon’s journey began in 1994, initially operating under the name Cadabra. The company strategically chose books as its first product category, with founder Jeff Bezos recognizing their practical advantages – books were readily available, easy to ship, and consistently in demand. Within a year, Amazon was delivering to all 50 U.S. states, positioning itself at the forefront of the emerging online shopping trend.
The company’s tremendous success led to rapid diversification. Amazon expanded beyond books into music and movies before launching Amazon Web Services (AWS) in 2006, which has become its primary revenue generator. The company’s growth continued with ventures into streaming services, grocery retail through its Whole Foods acquisition in 2017, and various other market segments.
This diversification strategy has inspired other retail giants to follow suit. Walmart introduced Walmart+, a subscription service similar to Amazon Prime but priced lower at $98 annually compared to Prime’s $139. Target has also entered this space with its Circle 360 program, demonstrating the industry-wide shift toward comprehensive retail offerings.
However, Barnes & Noble has chosen a different path. In a recent PBS Newshour interview, CEO Daunt suggested that Amazon’s approach to bookselling is purely transactional, stating that the company “doesn’t care about books.” Rather than viewing this as a disadvantage, Daunt sees Amazon’s market dominance as an opportunity for Barnes & Noble to differentiate itself.
The traditional bookseller has survived numerous industry challenges, including the retail apocalypse of the early 2010s and the COVID-19 pandemic, by focusing on its core identity as a dedicated bookstore. Daunt explains that Amazon’s mass-market approach has actually helped Barnes & Noble refine its inventory strategy. Instead of stocking slow-moving titles like textbooks, the company now concentrates on popular books and exclusive editions that appeal to dedicated readers.
Barnes & Noble has found success in offering unique products, including special editions with exclusive content and cover art that often sell out and command premium prices. Daunt emphasizes the experiential aspect of buying books in physical stores, suggesting that purchasing a book from Barnes & Noble enhances the reading experience itself.
The contrast between Amazon’s efficiency-driven approach and Barnes & Noble’s specialized focus highlights two distinct strategies in the book retail market. While Amazon’s model prioritizes convenience and vast selection, Barnes & Noble has positioned itself as a curator of reading experiences, banking on the enduring appeal of traditional bookstores to maintain its market position.
The competition between these contrasting business models demonstrates that even in a market dominated by digital commerce, there remains space for traditional retail approaches that emphasize expertise and customer experience over pure convenience. As the retail landscape continues to evolve, Barnes & Noble’s strategy shows that
specialization and focus on core strengths can provide a viable alternative to the everything-for-everyone approach pioneered by Amazon.