Before last week, buying one of two popular e-readers meant ordering it directly from the manufacturer. Now, consumers have a choice: Stick with the manufacturer or buy from a retailer.
Shoppers in search of the Kindle reader can purchase it from manufacturer Amazon.com (AMZN) and, as of Sunday, in some Target (TGT) stores in Minneapolis and Florida (a nationwide rollout is planned for later this year). The Nook reader, once available only from Barnes & Noble (BKS), went on sale at Best Buy (BBY) stores and on the chain’s web site on April 18. (Both devices retail for $259 at each location.)
The expansion suggests e-readers have grown from a niche device to a mass-market product. E-book sales rose 177% last year, to $313 million, according to the Association of American Publishers.
“It’s a legitimate category now,” says Andrew Eisner, the director of content for Retrevo.com, a gadget site offering user manuals and online reviews. “[Amazon and Barnes & Noble] are more interested in selling e-books for those e-readers.”
The April release of the iPad also put pressure on retailers to begin selling e-readers, says Kit Yarrow, a professor of psychology and marketing at Golden Gate University in San Francisco. During the first quarter, preorders of Apple’s (AAPL) tablet surpassed sales of the Kindle and the Nook, according to DigiTimes Research. Although the iPad isn’t primarily an e-reader, the manufacturers still needed to move quickly to retain consumers’ attention, she says.
An end to retail exclusivity on the Nook and Kindle could be largely beneficial for consumers, although buyers may have to consider a few drawbacks, including sales tax and a hard sell on extended warranties. Buyers should not expect flat-out price breaks, either — Target and Best Buy almost certainly agreed to keep prices in line with their respective partners’, Eisner says. “I don’t think we’re going to see prices drop anytime soon,” says Michael Gartenberg, a partner at technology consulting firm Altimeter Group in San Mateo, Calif. Policies are likely to be similar to Borders‘ (BGP), which sells the Sony (SNE) reader but excludes the device from its “any one item” discount coupons and other broad sales.
Still, the retail expansion could offer some advantages. Consumers should consider these pros and cons when buying an e-reader from the new retail partners.
In-Store Testing
Buying from a retailer should afford consumers the opportunity to use the devices and read text on their screens. “For someone to understand the Nook or Kindle, they need to hold it and see how it works,” Gartenberg says. This is consumers’ first chance to play with a Kindle in-store.
Lenient Return Policies
Kindle buyers can triple the length of time they have to change their mind about the device by buying it at Target. Under Amazon’s return policy, shoppers have 30 days to return merchandise but will have to pay shipping costs unless the return is a result of the site’s error. Target customers have 90 days for returns, as long as they have a receipt. A Target spokeswoman says the store does not have a special policy in place for the Kindle, and will not charge a restocking fee on returned items.
Similar Posts:
- More E-Books Now Are Free-Books
- 5 Personal Finance Apps for the iPad (Consumer Action)
- What the iPad Means for Your Wallet
- Must-Have Tips for Buying a Pre-owned or Used Car
- In E-Reader War, iPad Fires Loud Shot (Common Sense)
