Amazon has long been considered the single biggest threat to small and independent bookshops, with traditional shops struggling to compete with the retailing giant. In something of a peace offering, the Kindle manufacturers are now offering a revised deal for bookshops who choose to sell Kindle e-readers and tablets.
Amazon Source offers two deals for businesses interested in stocking Amazon devices, although online stores are not eligible. The general retailer programme offers a 9% discount on the suggested retail price for shops buying Kindles for resale, with a further 35% discount on accessories. This is intended primarily for electronic retailers.
On the other hand, Amazon is aiming their bookseller programme exclusively at physical bookshops. Although the 6% discount on e-readers and tablets is lower (the 35% remains the same), retailers who choose to participate will also receive 10% commission on all e-books purchased on devices they've sold. Shop-owners will have a six-month 'worry free' trial period, during which Amazon will buy back any unsold Kindles if they "aren't the right fit for your store".
The 10% commission will apply for two years after the device is sold. Currently the programme is only available for US retailers.
Amazon is not the first e-reader distributor to offer such a deal. Kobo has managed to gain a large retail presence by offering 5% commission on e-books and 10% commission on devices & accessories, and Amazon will now be competing more directly with the smaller company. Kobo will soon launch in Ireland after striking a deal with Easons that allow the Irish bookseller to use their own brand on Kobo's digital services.