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This competitive advantage accorded to internet-based retailers such as Amazon is hammering Britain’s booksellers on our High Streets and Town Centres. And it accused Amazon of playing a long game to take out the competition: It is the BA’s view that Amazon Prime unbalances the competitive playing field by directing customers to the Amazon ecosystem. Prime was seemingly created to ensure consumers elect not to shop anywhere else and the charge to consumers is believed to have been below cost. What is extremely irritating to booksellers is that Amazon’s perceived near loss-leading – or actual loss leading – is designed to direct consumers to the more profitable products that Amazon sell. It is the BA’s contention that after Amazon have destroyed the competition, they will increase prices. If they wish to reach a large number of consumers, many booksellers find that they have little option other than to use Amazon’s Marketplace. Over 40% of booksellers responding to the BA’s survey said they had sold books on Amazon Marketplace. But by having to use Marketplace, booksellers are helping to make Amazon even stronger. Marketplace gives Amazon access to data on, say, pricing and consumer behaviour which is not available to Marketplace sellers or competitors, plus Amazon control the catalogue and merchandising (often charged out to publishers), which subsequently controls access to books. This dominance within channel pivots upon control of access to customers, something which is unique.
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