Borders Returns To The Web After 7 Year Partnership With Amazon

DETROIT — Borders Group Inc. is returning to online retailing after seven years paired with Amazon.com, but analysts say it will be a challenge for the nation's second-largest bookseller to compete with established Web retailers.

The move comes as Borders, which has said it may put itself up for sale, has lost market share both to online retailers and to discounters such as Wal-Mart Stores Inc. amid a difficult economic climate in the United States.

It's a long shot, analysts say, in an environment where people are spending less and Amazon.com rules.

"Amazon just dominates," said Fred Crawford, managing director at turnaround consultant AlixPartners who has studied consumer attitudes toward major booksellers. "Amazon is nearly unassailable."

In 2001, Borders abandoned its money-losing online business, turning it over to Amazon. Under that arrangement, Borders.com took shoppers to a site partnered with Amazon, while a Web site for its stores allowed shoppers to check inventories and reserve items.

Seattle-based Amazon says it doesn't comment on the strategies of other companies and didn't have any comment on the end of the Borders partnership.

Tuesday's launch of Borders' new Web site comes more than two months after the Ann Arbor-based company announced it may put itself up for sale. Just last week, Barnes & Noble Inc. confirmed it put together a team to study the feasibility of a deal.

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On the Net:

Borders Group Inc.: http://www.borders.com

Comments

[MetryJen]

I think its GREAT. I love Borders here, but can't ever make it to the store (the only location is all the way across town in a seriously trafficky area) and I HATE Amazon.

[KillTheMessenger]

When I last time walked into a Borders it was still somewhat better than a Barnes&Noble, which is essentially becoming a warehouse for marked down books randomly thrown onto tables. What I am missing are serious book stores with staff that actually reads books. Only twenty years ago one could walk into many small and medium sized book stores and find an owner or employee who were true experts on literature. These owners and employees took the time to help with rare book searches, had exquisite taste in their merchandise and could get any book in print within a day or two FOR FREE, much faster than they can be ordered on Amazon today even for an outrageous shipping fee.

Most of these book stores are long gone. Borders, it seems, is trying to emulate some of the environment these old time stores provided without actually delivering the expertise and service. I doubt that this will be a serious business model. I used to spend a thousand dollars or more on books a year but that was when I felt at home at the book store and knew the owner on a first name basis. Today I step into one of the mega-stores and I step out disgusted without buying a book. Just going anywhere near one feels like a waste of time.

[DRaymond]

Borders made a mistake seven years ago when it gave up to Amazon.Now their goal should be to be a profitable number two while building respectabiliy.

The thing about Amazon right now is that they are so diversified on so many things, while the thing about Borders is that so many of their stores are so huge that they are getting killed by rent and staff costs.

What Borders.com needs to do is to the the site about Books and just books. They then need to make it a more interesting portal for book lovers, with perhaps intervews with authors, expert discussions, etc.