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Readers may discern a disconnect between the prevailing economic mood and the relentless innovation of online superstore Amazon. Even as whole segments of the economy crumble, Amazon is spearheading a whole new consumer electronics category with the Kindle, and as if that wasn’t audacious enough following it by releasing a bigger, more expensive version.
Now Amazon is embarking on another bold effort. It’s entering the publishing business with a program called AmazonEncore, a program that leverages all of the myriad data Amazon can collect to find overlooked books with potential mass appeal, which it will then rerelease under the AmazonEncore imprint. The first AmazonEncore title, to be released in late August, is Legacy, a fantasy novel originally self published by 16-year-old writer Cayla Kluver. AmazonEncore is an intriguing idea that will no doubt send self-published authors’ hearts racing. It’s also worth noting that these books won’t be Amazon exclusives. Amazon is going head to head with traditional publishers with plans to make AmazonEncore books available in “national and independent bookstores via third-party wholesalers.”
While it seems like Amazon is getting may from its core competencies with forays into consumer electronics and publishing, the online retail giant isn’t insane. Amazon is actually designed to do well in recessions, and with traditional book retailers and publishers facing challenges, Amazon is seizing the opportunity to grow its market share and enter new markets and businesses. BusinessWeek recently pointed out this dynamic: “Amazon continues to benefit disproportionately from the general shift to online commerce and the careful shopping behavior that consumers are exhibiting during the downturn. The breadth of the products it offers through independent merchants and its own expansion into new categories, along with low-priced shipping in the U.S. and abroad, continues to woo shoppers.”
Amazon’s willingness to innovate and invest in book-focused initiatives during this downturn will leave it with a very big footprint in the industry when the economy begins to recover.