Borders Group has announced plans to end its relationship with Amazon and reopen its own e-commerce website early next year.
The move follows a similar decision by rival bookseller Waterstone's in 2006, and came as Borders posted losses of $73.6m (£37.5m) for the fourth quarter of last year.
The company also said that it may be selling its 71 UK stores, citing increased competition from online retailers and tough retail conditions.
Amazon has handled Borders’ online sales and customer service since 2001, paying the company a percentage of its sales. It has been estimated that the loss of Borders could cost Amazon $80m (£40.8m) to $160m (£81.6m) in annual revenue.
Borders’ new site, which has been under development since last autumn, will be used to extend in-store programmes like its rewards programme to the web.
Graham Charlton is Editor at Econsultancy. Follow him on Twitter or connect via Linkedin or Google+.
Recommended reports
How We Shop in 2010: Habits and Motivations of Consumers
How We Shop in 2010: Habits and Motivations of Consumers is split into two separate documents for the US and UK, examining e-commerce consumer behavior in both countries. Both reports focus on how consumers interact with e-commerce brands, conduct product research and the different factors in the buying decision-making process.
Alternatively, see our Checkout Optimization Guide: 70 ways to increase conversion rates.
Reader comments (0):
Add your own
Enter your comment below