Why Barnes & Noble Joined Forces With Google

Barnes & Noble has partnered with Google to trial same-delivery services in three markets: New York City; West Los Angeles; and San Francisco. The question is how many customers of the struggling bookseller will want a book so badly—and so often—that they would be willing to pay more for the privilege of getting it that day.

Although same-day trials are quite popular with major retailers in Europe and the U.S. these days, they have been attempted in dense urban areas (and NYC, LA and San Fran are perfect examples, given their concentrated populations and large number of book fans) for years. Barnes & Noble has always had its share of time-critical purchases—such as when a book is needed for a school assignment for the next day—but does it happen enough?

Also, when same-day delivery programs move out of the cities into rural and suburban communities, the logistical and cost challenges soar. If it’s not scalable for most of a national chain’s stores, is the development worth? Will same-day delivery be just an artifact of urban dwelling, like food deliveries via bicycle?

There are some other very real retail issues that are addressed by same-day, such as Christmas E-Commerce purchases. Online chains typically have to practically abandon sales on Dec. 23 and Dec. 24—and sometimes even Dec. 22—because they can’t promise delivery by Dec. 24 or Dec. 25. Same-day shipments would open far more of that time as potential revenue days.

The payments community is watching this closely as successful same-day programs have the potential to move a lot of card present transactions (in-store) to card-not-present (delivery, online).
The deal has Barnes & Noble working with Google Shopping Express, a barely year-old unit that is already working with Costco, Walgreens, Staples and Target, reported The New York Times.

“By adding Barnes & Noble to its list of 19 retail partners, Google is making a more explicit grab for Amazon’s turf. The partnership also comes at a moment when many authors and book buyers are frustrated with Amazon because of what they say are its punitive negotiating tactics in its standoff with the publisher Hachette over e-book pricing,” The Times said. “Google’s approach differs from that of Amazon and other big retailers. Instead of relying on warehouses full of merchandise, Google is using a fleet of couriers who collect products from local stores, sort and bundle them and deliver them within a three- to four-hour window selected by the customer. Delivery is free for subscribers to Google Shopping Express, and costs $4.99 per delivery, per store for others. Membership is free for the first six months.”