French anti-Amazon law

Today came into effect a law here in France that is nicknamed "anti-Amazon law". Of course, the law doesn't cite Amazon, but the intentions behind the text was clearly and loudly announced to protect small bookstores against the international online competitor.

To have a full understanding of the story, a little background is probably needed, especially for those who have no knowledge of french laws about books. A few decades ago, politician were afraid that small bookstores would be destroyed by the competition of big malls that could sell books for a lower price. So, the government established something called "le prix unique du livre". It can be translated to "book's unique price". In effect, it means that when a book is first published, an advised price is settled, and it is forbidden to sell it for less than this price minus 5%. (Example: settled price 10€, nobody can sell it for less than 9.50€)

So, for a little more than 30 years, there's been no concurrence in France on book prices. As often though, the intended protection for bookstores never existed. The rate at which they disappeared is the same as in any other comparable country, where such laws didn't exist. The only everlasting effect was then that the lack of competition on book prices artificially keeps them at a higher level than in the US for instance: a net loss for the French reader.

Then Amazon came into our lives. The French version of the website still followed the local laws and applied the "no-less-than-5%" rule. To make their service appealing to their intended customers, they instated a free delivery for books, first on all order above twenty euros, then, a few years later, on all orders.

The same way it is anywhere else in the world, Amazon.fr is now a leader in the world of book selling in France. They achieve that by offering their customers what they want: prices as low as possible, an enormous catalog of items and a system of reviews and advice for finding your next purchase. Bookstores, for the most part, are still struggling.

Politicians then had a new great idea a year or so ago. "Let's try to slow down Amazon and bring back the readers to small bookstores." That's what lead to the new law voted two weeks ago. What the text of the law number 2014-779 of July 8 of 2014 (pdf) says -- my own translation:

 "When a book is delivered to the buyer and is not picked up directly in a bookstore, the selling price will be the price settled by the editor or the importing agent. The seller can remove 5% of this price off the delivery fee he chooses, without being able to make it a free delivery."

 A direct attack towards e-bookstores, Amazon in the first place. Today's reply by Amazon France probably surprised no one but the politicians behind that law. They announced on their website than sadly, they can't apply the 5% discount on the books they're selling, and they can't apply a free delivery to their orders. Instead, they decided to set the price to 0.01€ for the delivery.

Let's have a quick look at the actual effects of that law.

• Prices online have increased to reach the level they are in actual bookstores. 
• Delivery is still artificially free. 

For the customer, books more expansive, for Amazon, a raise in revenue of 5% on each order. Maybe the orders will decrease by a tiny amount, but overall, I think they'll gain money out of this. Because ordering books online is convenient, and that's nothing a bookstore can compete with.

The big error that bookstore owners and politicians make here is that they want to be on equal foot with Amazon. But that is simply impossible. Logistics and stocks are both in favor of the multinational company. That doesn't mean that physical bookstores have to disappear. But here's an advice, don't try to compete with Amazon with lobbying for new laws. Adapt!

http://librairie-expression.com/

I actually like bookstores. I like to wander in their alleys to try and find new novels to read. From what I've seen on the internet, a lot of people feel the same. I don't want them to disappear, and for that, there's one solution that the US bookstores should think of also. Adapt your offer. Specialize in certain genres, and personalize your offer, your advice. Adjoin your store to a coffee shop, a tearoom or just a reading room with a few baked goods. These are just the first ideas that pop in my head, but I think that's the way to go.

These are services that Amazon can't offer and they won't be able to compete with you.