Online retail giant Amazon has purchased British online seller The Book Depository for an undisclosed amount.
Book Depository has become one of the most popular internet booksellers during the past few years due to the fact that it ships products free of charge worldwide.
The purchase comes alongside movement in the local online bookselling market, with publishing group Pearson buying the online divisions of collapsed booksellers Borders and Angus & Robertson.
The Book Depository will add six million books to Amazon’s library of titles, with Amazon saying it will use the site to reach users worldwide.
“Customers in more than 100 countries enjoy The Book Depository's vast selection, convenient delivery and free shipping,” Amazon vice president of European retail Greg Greeley said.
“The Book Depository is very focused on serving its customers around the world and we look forward to welcoming them to the Amazon family.”
Book Depository is based in Britain but nearly 75% of its sales are sourced from more than 100 countries.
The promise of free delivery has undercut offerings from domestic booksellers, fuelling recent discussions about the power of offshore retailers.
The Book Depository said on its Twitter feed that it will continue to operate independently, with founder Andrew Crawford saying the company was looking forward to “continuing our growth and providing an ever-improving service for readers globally”.
The purchase price has not been disclosed but reports indicate that revenue was $US120 million last year, with a forecast of $US200 million for the 2011 financial year.
Rather than move into new models like eBooks, Book Depository, which was founded in 2004 by Crawford and Stuart Felton, is doing the opposite via a business unit dedicated to publishing works no longer in print.
Amazon has made some notable acquisitions in the past – it bought shoe retailer Zappos in 2009 for about $US1 billion – but Book Depository actively competes with Amazon.
It is not known if Amazon will incorporate Book Depository into its infrastructure or whether it will allow the site – and its promise of free shipping – to continue as it is.
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