Since the opening of its first staffed campus pickup location at Purdue University in West Lafayette, Ind., in February 2015, Amazon’s campus program has been steadily gaining momentum. By the end of this summer, the e-tailer will have staffed locations at seven additional universities from California to Texas and Massachusetts, as well as sites near two other universities.
In fact, Amazon Campus has gained so much traction over the past year that for the first time it took a small booth at Camex, the campus market expo, which is being held in Houston at the George R. Brown Convention Center from March 4-8.
On the opening day, the booth had a steady flow of booksellers inquiring about how Amazon’s “bolt-on” campus model, or staffed pick-up locations, works. As one bookseller, who requested anonymity, told an Amazon rep, “Students are buying from you anyway. We’d rather have 1.5% of the sale.”
Part of what sparked conversations at the show was an educational session on “Amazon on Campus: The Next Generation of Campus Retail,” moderated by Brian Collins, senior business development manager for Amazon Campus. But a number of college store staffers were caught by surprise by Amazon’s announcement on the opening day of Camex that it had added another partnership, this one for a pick-up location with University of Akron in Akron, Ohio.
Panelists Rob Wynkoop, managing director, senior enterprises and procurement services at Purdue University in West Lafayette, In., and Ruth Yanka, executive director, administration and finance operations at UMass Amherst, spoke about why their schools chose Amazon as their official bookstore of record. In both cases it came down to a frequently heard buzzword throughout the weekend, “affordability.”
“Part of our engagement with Amazon was the result of an RFP [request for proposal] and reducing the cost of textbooks,” Yanka said. UMass received six responses to the RFP, but chose Amazon primarily because of its pricing and customer service. “Our students were already purchasing online and we wanted to get ahead of the curve,” she added. UMass continues to work with Follett to sell apparel and other emblematic items, as well as general books.
For Purdue, which did not issue an RFP, “it was an opportunity to provide additional choice and savings to our students. Student affordability is one of the key tenets at Purdue,” Wynkoop said, estimating that the first semester that the university partnered with Amazon, students saw 30-35% savings on textbook and other material purchases .
Students at UMass found the transition to buying textbooks at Amazon relatively seamless. According to Yanka, the response was, “duh, you haven’t done this already?” By going with Amazon, she said that the longest wait times during rush was two minutes. Purdue’s Wynkoop called it a “no brainer” for students, although he acknowledge some apprehension from faculty and staff.
Although Amazon is known for its online retail, not every piece of Amazon Campus is online. In addition to having two brand ambassadors at each school, when Amazon is the official textbook provider, Joe Alpert, senior business manager at Amazon Campus noted, the e-tailer handles buy back for print textbooks on campus.
To a question on whether there will be more off-campus locations like the one in Santa Barbara, which are not necessarily in partnership with the schools, Collins said, “We see the value of campus partnerships. It will always make a lot of sense for a location on campus.”
Another college store staffer asked Yanka how she’s filling budget holes, since Amazon offers a lower commission on textbook sales. So far, UMass has yet to address the issue, although as Collins pointed out, “the commission isn’t only on textbooks.” He also noted that by partnering with Amazon, independent stores can improve their performance and optimize their selection and reach. “Millenials are voting with their wallets and feet,” he added about the popularity of Amazon among young people.
Although Amazon may be a solution on a growing number of campuses, not everyone is persuaded. At a session immediately afterwards on “What Amazon Would Prefer You (or Your Boss) Didn’t Know,” Jeff Sieber, a bookseller at University Book Store, which is across the street from Purdue, and Jim Zaorski, CEO of Sequoia Retail Systems, spoke about the opportunities for independent bookstores despite much that Amazon does right.
“Amazon is not after your book business,” said Zaorski, one of a number of company-watchers who pointed out that Amazon wants to get young people as customers and to keep them for life.
Amazon's presence has not destroyed UBS’s business. “Two years later, we’re still here,” said Sieber to much applause from the audience. Instead UBS has become more competitive about its pricing and also sources books from Amazon during nonpeak times, which gives it the inventory it needs to compete with Amazon and drives up Amazon pricing at rush.
The bookstore has also began offering free Wi-Fi, because it wants students to see that a required $17 chemistry lab book is being sold for $30 on Amazon. “We’ve become very transparent,” Sieber said. “We can’t beat them on all books, but some books. We’re down. But we’re still here. We’re profitable.”
