The world’s largest online retailer, Amazon.com Inc. (AMZN), plans to sell its e-books in the Netherlands.
In this regard, the e-tailer is, reportedly, in talks with a number of Dutch publishers. Though the exact time of the launch remains unknown, Amazon plans to open its online store by the end of this month.
In the recent months, Amazon has been aggressively foraying into international e-book markets and upgrading its e-book reader. According to a PwC (PricewaterhouseCoopers) report, the trade e-books (excluding educational publications) will reach $8.2 billion in sales by 2017 in the U.S. alone. The e-book market has witnessed unprecedented growth as both authors and readers have benefited from it. Amazon, through its Kindle reader and Kindle apps, is currently the leading e-book seller.
The planned e-book launch will help Amazon increase its market share in the Netherlands. The wide selection of books as well as its strong reputation and credibility will attract Dutch book lovers. This will likely boost Amazon’s e-books and other content sales.
However, Amazon is facing criticism from authors and publishing industry insiders, who allege that the e-Commerce giant is exploiting its position as a major retailer to extract unfair pricing terms from suppliers. Currently, Amazon is in a pricing dispute with Hachette, withholding pre-order shipping and reducing discounts on their books.
Though Amazon remains one of the leading players in the fast-growing e-Commerce market, investors are increasingly unimpressed with its huge investments that continue to yield low returns because of its aggressive pricing strategies. In the second quarter, the company reported a loss of 27 cents, wider than the Zacks Consensus Estimate of a loss of 13 cents. Also, revenues of $19.34 billion were down 2% sequentially but up 22.4% from the year-ago quarter.
Amazon currently has a Zacks Rank #4 (Sell).
Other Stocks That Warrant a Look:
Better-ranked stocks in this industry include Mercadolibre, Inc. (MELI), World Energy Solutions, Inc. (XWES), and PetMed Express, Inc. (PETS). While Mercadolibre and World Energy Solutions sport a Zacks Rank #1 (Strong Buy), PetMed Express holds a Zacks Rank #2 (Buy).
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