Small business: Local booksellers bound together amid online overseas competition

Scorpio Books in Christchurch.

As more Kiwis turn to overseas retailers or digital platforms to purchase and read books, the future of New Zealand’s local bookstores grows more grim. So, Booksellers Aotearoa New Zealand (BSANZ) decided to do something about it and recently launched the online platform BookHub, which seeks to transform local bookselling in the country.

BookHub project manager and BSANZ board member Tony Moores talks to the Herald about how they get more Kiwi book lovers to buy locally.

What does BSANZ do and how does it work?

Booksellers Aotearoa New Zealand (BSANZ) is the membership association for online and retail bookshops in New Zealand. It is a not-for-profit organisation that works to help its volunteer membership, comprising more than 180 independently owned and franchised bookstores, to grow and succeed. BSANZ provides education, information, business products, and services; creates relevant programmes; and engages in public policy and industry advocacy.

What is BookHub and what was the motivation for starting it?

BookHub is an answer to the question our bookseller members have been asking for a long time: How do we get more NZ book lovers to buy locally?

An independent study commissioned in 2021 by Read NZ Te Pou Muramura found that 35 per cent of New Zealanders bought their books online from overseas websites. BookHub is a disruptor to this habit; it stands up to commercial and offshore competitors, enabling NZ book lovers to quickly and easily buy books from local booksellers - from a single site.

We knew, given global trends, that online sales were only going to increase, so it was essential that we came up with a solution for our members that put buying locally as a front-and-centre option for NZ book buyers.

We needed to create a site that didn’t compete with booksellers’ own websites; that instead complemented and enhanced their visibility. BookHub achieves this by being a single point of entry for consumers, who can use the site’s geolocation feature to choose which store to purchase from – either via courier or click-and-collect. Once the consumer has clicked on their choice, they are taken directly to that bookseller’s website, where the purchase is completed.

BookHub demonstrates that by harnessing the inventory of our member bookstores across the motu, consumers have as much, if not more, purchase choice than the offerings of an overseas e-tailer. There are more than a million unique titles available from local booksellers via BookHub.

How does BookHub help independent booksellers?

BookHub provides participating booksellers with opportunities for growth, with increased visibility and the prospect of increased sales from consumers who like buying online. Importantly, sales of books sold on BookHub are reflected in NZ’s industry data.

BookHub is a model that requires trust among participants because it’s based on the idea of ‘co-opetition’; there is a measure of competition as well as a large dose of collaboration. If one bookstore doesn’t have what the consumer is after, that bookstore understands that the sale will go to a fellow independent bookstore. Our members are happy with that, because they know that in the long run, they’ll all benefit. There’s a great deal of collegiality amongst NZs independent booksellers, which may be due to our market size.

The Australians tried to get this model up and running, but it failed because they couldn’t get their heads around the ‘who benefits’ aspects. It’s a much bigger market.

BookHub is a world-first creation in the English-speaking realm. It is not a distributor, holds no inventory of its own and does not take any commission for sales. Everything is directed back to the bookstores.

The Women's Bookshop in Ponsonby, Auckland.

How big is your team?

The association has a secretariat of three and is governed by a board of directors.

From the outset, the project was a collaboration between BSANZ and Circle Systems, a home-grown POS [point of sale] provider whose willingness to engage with other competing POS systems used by indie booksellers has enabled the network of participating stores to be truly comprehensive across NZ.

What’s the major focus for your business right now?

Success for booksellers is driven by their relevance to their local community. Curating the best possible range of titles for their customers is at the heart of any bookstore. So, what BookHub does is expand the reach of every bookstore into something that’s nationwide. Strategically, we see this as a real game-changer in the way Kiwis buy books.

What challenges is the industry facing at the moment?

Sustainability is a big issue for the book industry. Books are heavy and expensive to distribute around the world. So, the BookHub model of making the most of inventory which is already here, rather than buying from overseas, makes a lot of sense.

Overseas online e-tailers are a challenge. While they may price-gouge, consumers may find that once the cost of postage is taken into account, it’s cheaper – as well as faster and more sustainable – to use BookHub.

Where do you see BookHub in the coming years?

Our vision for BookHub is that it becomes the go-to website for Kiwi readers looking for books.

We want it to work as a highly visible additional sales channel for our members, complimenting their own individual websites.

What advice do you give others thinking about starting their own business?

Speak to a bookseller who is already successful and ask them how they went about achieving their results. Get as much professional advice as you can. Find the right location. And remember, bookselling is a business, not a hobby.