This video corresponds to one of the sessions during Readmagine (2024 edition) devoted to present landscape of ecommerce for books. The conversation with Mark Thornton (Bookshop.org) and Sakari Luovio (Alibris) was curated and moderated by the Brazilian publishing consultant based in Stockholm, Carlo Carrenho (see bellow their biographies).
The discussion highlighted the resilience and adaptability of e-commerce book platforms in the face of market challenges and competition from Amazon. Both Bookshop.org and Adlibris have carved out unique niches by focusing on their strengths, ethical missions, and localized strategies. The conversation emphasized the ongoing evolution of the book retail landscape and the importance of staying attuned to customer needs and market trends.
The insights from Sakari Luovio and Mark Thornton revealed that the future of book retailing lies in a balanced integration of e-commerce and physical stores, with a strong focus on understanding consumer behaviour and adapting to digital trends. Sustainability efforts and innovative approaches to curation and customer engagement will be critical in maintaining relevance and competitiveness in the evolving marketplace.
Here you can read a short summary of the content discussed during the session, this structure has been organised by the team of Fundación Germán Sánchez Ruipérez.
Company overviews
Bookshop.org
Mission: Provide a platform that benefits independent bookshops by emulating Amazon’s efficiency while supporting local bookstores.
Evolution: Launched in the UK in November 2020, quickly growing to support nearly 600 independent bookshops.
Business model: Bookshop.org operates on a commission basis. Independent bookshops earn 30% commission on sales through the platform, while other affiliates earn 10%, with an additional 10% going into a shared pool for all bookshops on the platform.
Adlibris
Overview: Largest e-commerce book retailer in the Nordics, with a significant presence in Sweden, Finland, and Norway.
Evolution: Started in the late ’90s and expanded to include physical retail stores post-pandemic to maintain customer engagement.
Market position: Holds a 90% brand awareness in Sweden, positioning itself as a specialized book destination rather than a horizontal marketplace like Amazon.
Impact of the COVID-19 Pandemic
Mark Thornton Bookshop.org)
Pandemic growth: The platform saw a significant surge in sales during the pandemic.
Post-Pandemic trend: While there was a decline post-pandemic, the long-term trend of increasing online book sales remains strong, with over 60% of books in the UK now bought online.
Sakari Luovio (Adlibris)
Pandemic growth: Experienced a 30% increase in sales during the pandemic.
Post-Pandemic trend: Faced a decline in sales post-pandemic, prompting a strategic shift towards integrating physical retail to retain customers.
Streaming competition: Noted the rapid growth of audio and streaming services affecting physical book sales.
Competition with Amazon
Mark Thornton
Competitive strategy: Acknowledges that Bookshop.org cannot compete with Amazon on price but focuses on service and ethical consumerism, leveraging its B Corp status to attract customers who prefer supporting independent bookshops.
Market Dynamics: Emphasizes the importance of highlighting the positive aspects of Bookshop.org rather than directly competing with Amazon.
Sakari Luovio
Competitive strategy: Does not view Amazon as a significant competitor in the Nordic region due to Adlibris’ strong market presence and brand recognition.
Strategic focus: Advises against becoming competitor-obsessed and instead focuses on adding unique value for customers.
International Market and Trends
The opportunity in English language books: Both participants noted an increase in the share of English language books, with Adlibris seeing growth from 20% to 26% in recent years.
International Shipping
Bookshop.org: Currently does not ship internationally to avoid harming local bookshops and due to logistical challenges post-Brexit. There is potential for future expansion but other priorities take precedence.
Adlibris: No immediate plans for European expansion beyond the Nordics, though there is consideration for future moves depending on market conditions.
Failed Expansion in Spain
Mark cited factors such as strong competition from local platforms, lack of pandemic momentum, and specific market dynamics as reasons for the unsuccessful launch in Spain.
Relationship Between E-commerce and Physical Bookstores
Sakari Luovio on omnichannel strategy:
Adlibris, a major online bookstore, operates a few physical bookstores to better understand and reach their market. Luovio emphasized that customer loyalty is not static; instead, businesses must continuously adapt to meet customers where they are. Post-pandemic shifts saw many customers returning to offices, prompting Adlibris to establish physical stores near these locations. Luovio argued that a significant portion of customer journeys start online, often with a simple Google search, rather than from a strong brand loyalty. Therefore, an omnichannel approach—integrating both online and physical presence—is crucial to capture the varying customer touchpoints .
Mark Thornton on supporting independent bookshops:
Bookshop.org, an online platform supporting independent bookshops, was launched just before the pandemic. Thornton underscores the vital relationship with physical bookstores, which remains at the core of their mission. The platform not only provides e-commerce capabilities to these stores but also emphasizes the importance of curation—a service that independent bookstores excel at. Thornton highlights that curated lists by booksellers and authors add significant value, guiding customers in a way that large online retailers cannot. This curation helps maintain the relevance and competitive edge of independent bookstores .
The Role of Digital Products in E-commerce
Adlibris and digital products:
Despite Sweden’s strong inclination towards subscription-based services, Adlibris maintains a transactional model for selling audiobooks and eBooks. Luovio acknowledged the dominance of subscription models but sees potential in à la carte sales, indicating ongoing strategic evaluations and potential collaborations with partners like Kobo. This approach allows Adlibris to cater to diverse consumer preferences and maintain a foothold in the digital book market .
Bookshop.org’s expansion into digital:
Bookshop.org plans to launch eBooks and audiobooks, expanding its offerings to compete with giants like Amazon and Audible. Thornton noted that while subscription models dominate the market, Bookshop.org will adopt a subscription token model for audiobooks, ensuring that independent bookstores benefit financially from digital sales. This move aims to level the playing field, providing independent bookshops with tools to compete in the digital realm while leveraging their unique strengths in curation and community engagement .
Sustainability in online bookselling
Adlibris’ commitment to sustainability:
Sustainability is a core focus for Adlibris. As one of the largest booksellers in the Nordics, the company takes significant steps to reduce its carbon footprint. Initiatives include reducing air transport, sourcing books locally where possible, and making tough decisions about the products they sell, particularly in categories like toys. These efforts are part of a broader goal to reduce their carbon footprint by 50% by 2030. Luovio highlighted that while transportation impacts are often cited, the production process, especially for books, is a major contributor to their overall carbon footprint .
Trends and challenges in online bookselling
Understanding consumer behavior:
Both Luovio and Thornton identified understanding and responding to consumer behavior as a critical challenge. For Adlibris, the decline in non-fiction sales poses a significant issue, prompting questions about where these customers are going and how they are consuming information. The competition from digital and audio formats, podcasts, and even AI-driven content sources like ChatGPT, requires the industry to innovate continually .
The rise of audio and e-books:
Thornton sees audio and e-books as both a trend and a challenge. Independent bookshops, having been largely excluded from the audio market, need support to develop the skills and infrastructure to compete effectively. The ability to offer curated, high-quality digital content is seen as a way to unify the physical and online retail experiences, providing a cohesive customer journey across platforms.
The insights from Sakari Luovio and Mark Thornton revealed that the future of book retailing lies in a balanced integration of e-commerce and physical stores, with a strong focus on understanding consumer behavior and adapting to digital trends. Sustainability efforts and innovative approaches to curation and customer engagement will be critical in maintaining relevance and competitiveness in the evolving marketplace.
Carlo Carrenho is an international publishing consultant based in Stockholm, Sweden. He has been working in book publishing for 30 years and his experience is particularly strong on digital strategy, business development and general management.
He is Frankfurt Book Fair’s Audio Ambassador for the 2023 and 2024 editions. Besides that, he has been consulting for companies and organizations such as Dreamscape (USA), Beletrina (Slovenia), Arabic Language Center (Abu Dhabi) and Meta Solutions (Brazil). As a publishing expert, Carlo has moderated or lectured in events such as Digital Book World in the U.S., China’s First World Conference of Digital Publications and South Africa’s Digital Technologies Summit, as well as book fairs such as Frankfurt, London, Guadalajara, Buenos Aires, Abu Dhabi, Rio de Janeiro and São Paulo. He has also co-authored several publishing studies and reports.
He founded the online book trade media PublishNews in Brazil and Spain and recently sold his equity in these companies. Carlo has a degree in Economics from the University of São Paulo and attended the Radcliffe Publishing Course in Cambridge, US.
Mark Thornton is the Senior Partnership Manager for Bookshop.org in the UK. Having founded the award-winning Mostly Books in 2006, he was an independent bookseller for 11 years and a bookshop mentor with the Unwin Charitable Trust before joining Bookshop.org in 2020 as part of the UK launch team. His role involves looking after the more than 550 independent bookshops on the platform, helping develop bookseller online sales and digital skills, and building key partnerships in other bookselling areas, including children’s books.
Sakari Luovio is Chief Sales Officer at Adlibris.com since 2016, the market leading online-bookseller in the Nordics with strong presence also in brick & mortar. Before Adlibris Sakari was Head of Sales in the Nordics at Canadian publishing house Harlequin Enterprises and between the jobs within the book industry he was responsible for the sales in Nordics at Warner Bros for few years. He is also a Vice Chairman in the Booksellers Association of Finland since 2019, with the agenda to improve the business environment of Finnish bookstores and their interests. At Adlibris Sakari has set the commercial omnichannel strategy where the book is in the very center of it supported by the nonbooks-categories together with a data driven customer-obsessed organization. Sakari has a deep understanding of the dynamics of the book industry in the Nordics and in customer and monetary value drivers within ecommerce. Sakari has learning as his key personal driver – continuously learning how to optimize the omnichannel customer experience that converts to maximal sales.
