Amazon Goes Offline with a Physical Bookstore

After helping drive many U.S. bookstore chains out of business, Amazon has been opening its own retail stores recently.

Its first Amazon Books location in New York City opened in Manhattan’s Shops at Columbus Circle, which was previously home to a pretty large — and now closed — Borders Books and Music.

A customer review, the number of total Amazon.com reviews and a star rating are displayed under each book on the shelf. All the books in the store either received four-star ratings and above on Amazon.com, or come from lists of best sellers or a hand-curated selection of new, yet-to-be reviewed titles.

The brick-and-mortar locations aim to provide a “mecca of discovery” for book lovers, according to Jennifer Cast, vice president of Amazon Books. The books all have the covers, not the spines, facing out, to encourage browsing —even though the store could have fit as many as 5,000 more titles if books were displayed the conventional way, Cast said.

Why It’s Hot:

Though it’s possible to check out like a regular bookstore, Amazon Books offers significant discounts to Amazon Prime members. This provides a strong incentive for customers to join Amazon Prime — a program that analysts say prompts more spending on Amazon.com.

Experts say that by converting just two or three dozen customers a day to Prime would result in a tremendous growth in revenue. Customer lifetime value for most Amazon customers is in the low thousands of dollars.