A Canadian book blog: Publishing, marketing, books and technology from a Canadian perspective

Friday, March 29, 2013

Amazon Buys Goodreads

In publishing news yesterday, Amazon bought Goodreads. The big question in the minds of users and publishing industry folks is “what will they do with it?” In particular will they remove the buy buttons for other retail sites? Word on the street is that Goodreads was working on a bookstore function for the site, hence the acquisition by Amazon. Like Facebook and Google, Amazon likes to take any competition off the table. They already own Shelfari and have a stake in LibraryThing, so maybe owing Goodreads was always in the cards.

People like publishing consultant and Digital Book World partner Mike Shatzkin think it’s definitely because of the bookstore competition though. And why is Goodreads competition? Because they have an awesome recommendation engine and rapid user growth. Add a bookstore to that and they stand to make a nice bag of coin.

With 12 million users as of late 2012, Goodreads is the largest book-focused social network so it will be interesting to see how Amazon, the largest bookseller, is going to capitalize on that. The Digital Book World site has a good article on the acquisition — Amazon Acquires Goodreads — and they’ve provided a few logical guesses at what Amazon will do with Goodreads.

  1. Use the site’s data to augment and improve its own book recommendations.
  2. Remove buy buttons for other retailers’ books.
  3. Supplement its own reviews with Goodreads reviews.
  4. Add Goodreads to its suite of marketing solutions for publishers.
  5. Nothing. The company is growing quickly (nearly tripled in users since the end of 2011).

I think they’ll definitely use the site’s data, and they will likely remove or make much more prominent the Amazon buy button. At the moment Barnes & Noble is the prominent call to action. I do not think they’ll replace their reviews with Goodreads’ reviews because for SEO reasons they’d want the content to be unique on both sites so they have have a double whammy in search results. Goodreads does have a good marketing program, including author chats and advertising, so perhaps that becomes part of an offer to authors and publishers. Oh the anticipation!

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