While Random House and Simon & Schuster contemplate selling directly to consumers through their Web sites, Penguin Group USA CEO David Shanks said the publisher's year-old online sales operation "has lived up to expectations." The online operation "will pay for itself," Shanks said, noting that while online sales will be "substantially below" 1% of total revenue, the project came close to the sales target Penguin had set.
The online experience "has validated a number of our assumptions" about what will sell, Shanks said. The most popular titles have not been bestsellers, but rather books that are not carried by most bricks-and-mortar stores, Shanks said, noting that only e-tailers have the ability to sell all of Penguin's 30,000-title backlist. Shanks said Penguin is looking for ways to improve the functionality of the site. While Penguin doesn't aspire to provide Amazon-like navigation, "we need to come up with better ways to move around the site," he said. He is particularly interested in being able to provide suggestions to consumers who are looking for suggestions for a book to buy. And Shanks made it clear that Penguin will proceed with its online sales option. "We're very happy with what we've learned," he said.
As at Penguin, online sales at Dorchester Publishing are driven by backlist titles. "The bulk of our sales are for books people can't find in stores," said Leah Hultenschmidt, manager of public relations, advertising and Web operations. Dorchester overhauled its site last year, adding more title information while also making it easier to place orders, Hultenschmidt said.
Dorchester's titles are listed at full price, but the company offers various discounts. Book club members get a 30% discount and customers who order five books get one free. Shipping is free for orders of nine or more books. "The philosophy here is that buying in bulk is good," Hultenschmidt said. She said a key toward driving sales is to offer customers some sort of discount, even if it isn't permanent. Dorchester usually runs special sales about once a quarter, during which it offers 50% off selected titles. "We always see a spike," she said.
The company also sees a spike in orders the day after its bimonthly e-mail messages are sent, Hultenschmidt said. The company sends regular e-mail alerts to customers that are tailored by interest, such as romance, horror or thrillers. Response is highest to the romance blasts.
