Amazon helps create demand for niche books that have a widely dispersed audience that can't be targeted effectively through traditional marketing. These are the books readers often can't find in their local bookstore, or even the library--but they're easy to find on Amazon. Twenty-five percent of Amazon's sales come from obscure books that aren't even carried in a Barnes & Noble superstore stocking 100,000 titles. And the percentage of these "long tail" sales grows every year.
Sure, part of Amazon's appeal is its discount pricing and free shipping offers. But the real value for book buyers is being able to find exactly what they want, says Chris Anderson, author of the 2006 business bestseller The Long Tail:
It's not enough that things be available, you need to be able to find them. The big problem with brick-and-mortar stores is, all shoppers experience the same store. But the problem of findability is solved when you go online. You have searching, recommendations, and all sorts of narrow taxonomies--things can be in multiple categories at the same time.
For 50 years, publishers have been chasing blockbusters--the bestseller hits. They had to, because with limited shelf space, bookstores had to focus on the stuff that moved fastest. Today, chasing blockbusters is obsolete. Authors and publishers have a wide-open opportunity in serving niches.
These niche books are the ones people care about most, and the ones Amazon is most effective in recommending, says Greg Greeley, Amazon's vice president for media products: "The Web site is designed to help customers find books they didn't know existed."