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Online retailers join book market

Book shopping can be a confusing ordeal. Just ask Heidi Burns.

The French books she bought from an online retailer were "a pain in the butt to send back," after she changed her mind about the class, she said.

And the University Bookstore would not let Burns return the "really big bio book" she bought there because she had opened the CD that went along with it.

Only the Corner's Student Bookstore would buy Burns' book early in the semester for a used book price. She only got "about one tenth of what I would have gotten [at the University Bookstore]," she said.

And all that was before Burns was even a first year. After taking classes at the University for the past few years while attending a Charlottesville high school, Burns is finally a full-time student at the University - and it hasn't gotten any easier.

This semester, Burns looked into shopping online again. But her professors did not post booklists until classes began. Buying online would have meant shipping delays. And Burns said she is "too impatient to wait," for shipping.

"I kind of gave up," on the online booksellers, she said.

The University Bookstore will get Burns' business this fall. Her expenditures have reached about $300, "$150 today, $150 yesterday," with still more books to buy, she said.

Although every student experiences these frustrations at some point, both physical and online textbook retailers say business is good.

Online bookstores, such as VarsityBooks.com and bigwords.com, offer a relatively new way for money conscious students to purchase textbooks.

Although online bookstores boast cheaper prices, physical bookstores say they are still competing.

A Thriving Industry

Sam Heitner, of Varsity Group Inc.'s Strategic Planning and Communications division, said traffic on Varsity Group's Web site, VarsityBooks.com, "has grown at an increasing rate," since it opened for business in 1998.

VarsityBooks.com was particularly successful during last January's book-buying season, when it boasted over one million visitors, "outweighing all of its online competitors," said Heitner.

But even more than the traffic, Heitner said, VarsityBooks.com is "very proud" that "students come back semester after semester" to purchase textbooks.

Even if VarsityBooks.com has been thriving, however, the added competition has not stopped the physical bookstores from making money.

"Thanks to the support of our students, our store had a greater operating surplus this past year than the previous one," said University Bookstore Director Jonathan Kates.

"If anything, the frustrations that many students have experienced in trying to shop for textbooks online or elsewhere have strengthened our standing in and our value to the University community," Kates said.

John Kelm, owner of the Student Bookstore, also agreed that business has been good. "We're still very much in a growth mode here," he said.

Strategic Pricing, Lower Prices

Online booksellers like VarsityBooks.com and bigwords.com have been growing mainly because the onlines often are able to offer lower prices.

Although he said he could not release specific numbers, Heitner said VarsityBooks.com offered such competitive prices because of what he described as a "close relationship" with wholesaler Baker & Taylor. The University and Student Bookstore also have a higher overhead, and they must provide year round services and University paraphernalia that onlines do not.

"We really focus on the books," Heitner said.

University Bookstore Director Kates, however, offered another explanation of lower online textbook prices.

"Those online bookstores that discount textbooks operate at a loss," he said.

VarsityBook.com's Heitner is confident his company is around for the long run.

"We're not about being around for a year or two," He said. "We plan on being around for the long haul."

Although Heitner feels confident about his long-term strategy, Student Bookstore owner Kelm is not feeling as happy.

"It irritates me that their goal is to lose money," he said.

He said he expects only a few online booksellers to survive. And despite his irritation, he said, "I have not seen any evidence that they have affected us at all."

Both Kelm and Kates said many people disillusioned with the onlines have returned to physical stores.

Fostering a Competitive Market

Many students have not had bad experiences buying online; they just have not tried it out.

"I haven't looked online, but I've been meaning to," said Jennifer Ciezkowski. The second-year engineering student turned to the Student Bookstore to buy her books because "the Student Bookstore is cheaper than the University Bookstore, and the cheaper the better."

Third-year Commerce student Candice Chung agreed, saying she has already been shopping online and will continue to find the lowest prices any way she can.

"If there is a way to get books cheaper, then I will," Chung said. She said she already has spent almost $550 on books with still more to buy.

The advantage of the physical bookstores is that they are just that. Although the Student Bookstore is not located on Grounds, Kelm described the relationship between the University and the Corner as "symbiotic."

The University Bookstore benefits from its location. Fourth-year philosophy major Sheila Motley has always shopped at the University Bookstore.

"I just stop by here on my way to class," she said. "It's closer" than the Student Bookstore.

In addition to being closer, students also welcome the opportunity to use Cavalier Advantage at the University Bookstore.

It is a disadvantage that Kelm would like to reverse. Because of liability concerns, the University has not allowed Corner merchants to use Cav Advantage.

"It does limit freedom of choice," Kelm said. "Bottom line, I would like to have it."

And the University Bookstore gets a public relations boost from its University affiliation.

"In addition to meeting all of its operating expenses and paying off its construction debts, the bookstore contributes $250,000 each year to its Endowment for Excellence, which has in the past been used for need-based scholarships," said Kates. He added that, "additional operating surpluses are used to discount text and general books."

Despite competing interests, however, Kates, Kelm and Heitner said a competitive market is valuable.

"We enjoy honest competition; it keeps us sharp," said Kates.

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