Yahoo Finance today reported that Amazon had agreed to acquire The Book Depository, the online book retailer that offers free delivery worldwide to customers.
The UK based company had £60 million in sales in 2010 and is targeting £120 million in 2011 according to Retail Gazette earlier this year and was founded by Andrew Crawford in 2004.
It would seem to be a case of, ‘How do you know you are doing something right? Amazon acquires you!’ In that regard the team at Book Depository should be congratulated for building such an impressive company relatively quickly.
Amazon.com, Inc. (NASDAQ:AMZN – News) today announced that it has reached an agreement to acquire The Book Depository International. The Book Depository is an online bookseller offering over six million books for delivery worldwide.
“Customers in more than 100 countries enjoy The Book Depository’s vast selection, convenient delivery and free shipping,” said Greg Greeley, Amazon’s Vice President of European Retail. “The Book Depository is very focused on serving its customers around the world, and we look forward to welcoming them to the Amazon family.”
From Amazon’s perspective It’s hard to know what the play is here. It could be any of:
1) Increasing UK and European exposure
2) Building a better position in Australia
3) Defensive market-share building
Or any number of other things. There must be some worries about competition approval, at least in the UK, with this.
Finally, from Irish readers and book buyers view, the key will be whether Amazon changes the free postage model The Book Depository operates. If so, this could be a bad deal for those who purchase books online, though perhaps a boost to bookshops.
Guest Blog: Amazon Acquires The Book Depository. And a Little Bit of Egypt!
Amazon.com’s decision to acquire Guernsey-based online book distribution company, The Book Depository, was announced in a terse press release from the online retailing giant. The move is subject to British regulatory approval, but it would see a small online retailer gobbled up by the behemoth. Many people have seen it as a sort of David/Goliath thing.
Interestingly, the man behind The Book Depository, Andrew Crawford, has done it before – he was part of the startup team at bookpages.co.uk which was acquired by Amazon way back in 1998.
Even more interestingly, there’s a Middle East angle to the acquisition – The Book Depository is the majority holder of an Egpytian business process outsourcing company, elkotob.com, which provides back-end solutions for online book sellers but which also has expressed an aim to “to lead the Arabic book market, in the Middle East region as well as becoming the biggest Arabic books supplier in the world.”
Will the move bring Amazon, finally, to support readers in the Middle East with Kindles and content? Will we now be able to access amazon with Middle East addreses and accounts? Will Amazon start to support Arabic in a big way? Will Amazon’s e-commerce engines replace elkotobs? Will the 65 staff be expanded or replaced by Amazon? Will this see Amazon outsourcing some of its own massive development and server infrastructure to Egypt?
This could be an interesting move indeed…