New regulation on delivery costs to fight unfair competition
France has decided to implement new regulations regarding delivery costs for book orders. The objective is to restore a certain equity between the giants of online commerce and independent bookstores. According to this new regulation, only orders worth more than €35 will be able to benefit from reduced delivery costs. Fees cannot be less than €0.01. This regulation will come into force on October 7, 2023.
The impact on Amazon Prime users
Until now, Amazon Prime subscribers received free shipping on books. This was one of the main marketing arguments to justify the cost of this subscription. However, with this new regulation, Amazon Prime members will now have to pay shipping costs for their book purchases. This move could result in a loss of subscribers for Amazon, especially after recent price increases.
The reaction of Amazon and Fnac to this decision
Faced with this measure, companies like Amazon and Fnac have decided to apply the minimum authorized delivery costs, i.e. €0.01, only for orders over €35. For orders under €35, a minimum delivery fee of €3 will now be required on the main online platforms. This change should make local bookstore offerings more competitive compared to online purchases.
Amazon’s arguments to justify free delivery costs on books
Amazon has always maintained that free book delivery costs help to compensate for the absence of local bookstores in certain rural areas or areas lacking this type of business. The end of free delivery costs could therefore have an impact on these already disadvantaged areas.
The future of independent bookstores and the book market in the face of this new regulation
- Better equity between large platforms and small local businesses: with this new measure, online commerce giants will no longer be able to put local bookstores in difficulty by offering attractive delivery costs.
- Consumers potentially more inclined to support local businesses: with similar delivery costs, some buyers may prefer to turn to independent bookstores rather than going through online platforms.
- An uncertain impact on the online sale of books: this measure could encourage local commerce, but it could also lead consumers to favor other formats of books (digital, audio, etc.) or to group their purchases together to reach the threshold of €35 and benefit from reduced delivery costs.
In conclusion, the new regulations on delivery costs for book orders in France aim to protect independent bookstores and promote fairer competition. Only time will tell us whether these measures will have a real positive impact on the book market and small local businesses.