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Hely Hutchinson criticises Amazon

06.06.08 Benedicte Page

Amazon's current sanctions against Hachette are "effectively creating a breach of trust between Amazon and its customers", Hachette Livre UK c.e.o. Tim Hely Hutchinson has said in a strongly-worded letter to authors, seen by The Bookseller.

Hely Hutchinson's letter explains Hachette's position in its current terms dispute with Amazon, which has seen the retailer remove the "Buy New" button from key front and backlist titles from across the Hachette Group, and also take them away from promotional positions on the website. Titles such as Kate Mosse's Labyrinth (Orion), Stephen King's Duma Key (Hodder) and James Patterson's The 6th Target (Headline) continued to be affected this week, a fortnight after The Bookseller first reported the issue.

The letter tells authors that the retailer's actions could "prove to be a catalyst for Amazon starting to lose its popularity with the public" because it is reducing its range and service to customers. The letter says that despite advantageous terms, "Amazon seems each year to go from one publisher to another making increasing demands in order to achieve richer terms at our expense and sometimes at yours", and affirms Hachette's intention to stand firm against conceding additional terms.

"Declining all additional terms demands is the approach that we even-handedly take with all major retailers, and it is particularly important in relation to Amazon," Hely Hutchinson wrotes.

He added that Amazon's "aggressively low" pricing on prominent titles was damaging traditional bricks-and-mortar booksellers and Hachette did not wish to provide additional "ammunition" for the online retailer to do so.

Amazon responded: "Amazon.co.uk is unable to comment specifically as we have not seen the letter in question. Amazon.co.uk is totally committed to offering the broadest selection of titles possible, both through our retail offering and through the vast number of booksellers who sell both new and used titles on Amazon Marketplace. Amazon.co.uk is also committed to ensuring we offer our customers the lowest possible prices, encouraging them to enjoy even more books from a wide variety of authors."

The development came as agents expressed concern over the ongoing dispute. Anthony Harwood, who represents Chris Manby, said his author had been dealt a "double whammy", as both her new hardback Spa Wars (Hodder) and her first book written under the name Olivia Darling, Vintage (Hodder), were affected. "It's incredibly frustrating; the author suffers while these disputes rumble on," he said.

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Comments on this article

By Clive Keeble

In the USA, thanks to the Robinson Patman Act, Amazon are of course restricted to receiving the same discount as any other outlet, regardless of size. True, Amazon can seek additional co-op promo funds, but at least America's traditional b&m's have a better than evens prospect of survival.

06 Jun 08 08:52

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By inwaiting

The apparent naivety bordering on ignorance and greed of some agents never ceases to amaze me. Does Mr Harwood think that his author - who will know the merits of good editorial support over many years - will be better served in the post publisher world envisaged by Bezos & Co? Authors should be supporting efforts to strengthen both publishers' and high street booksellers' position vis a vis Amazon. Of course there is another way. His authors can have royalties based on net receipts for UK sales. That'll allow publishers to give in to the pressure. Of course it still won't save the traditional book trade - but then what care is that to an agent who can't think beyond the doorstep of his own office...

06 Jun 08 09:11

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By FZ

I've just bought my first books on the Borders website after reading about this dispute. Normally, I would have bought them on Amazon.

06 Jun 08 10:55

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By June Austin

Lets hope that others follow suit. I for one emailed everyone on my mailing list as soon as I read what they were doing to POD publishers - of which I am one. The interesting thing here from my point of view as these events unfold, is how this affects everyone in publishing regardless of which method they choose - which only serves to remind us that we are in this together, and when it comes to Amazon at least, everyone is equal.

06 Jun 08 13:28

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By Brian

Hello inwaiting, I don't think Mr Harwood is blaming the publisher ans supporting amazon. He's just making the point that his author is affected by this action, and it his job to look out for his authors best interests. (of course his own interests are directly linked, but that is the nature of his job) I would hope my agent was looking out for my concerns if I was in this position. I do however agree that Hachette are right to stand firm.

06 Jun 08 13:55

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By JULIAN RIVERS

How hilarious that Tim says "Amazon's agressively low pricing policy on prominent titles are damaging traditional bricks and mortar booksellers ." Er ...like Tesco , Sainsbury and Asda I suppose ,stocked full of his books at give away prices . Amazon are bound to win this , they always do . This is because the author/ agent pressure is clearly building and of course the same books being sold through Amazon's marketplace actually give Amazon more profit than a conventional sale . So they are laughing. Tim is a stubborn negotiator but lack of a deal will damage him and his authors much more than Amazon .

06 Jun 08 15:03

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By imatree

I hope you're wrong Julian. Much as it's hard to feel sorry for poor little Hachette, they did lead the way in deep discounting with the supermarkets and have to my mind encouraged price cuts everywhere, I do support them holding out against Amazon. I think they can bear the loss a bit of trade for some time, and it is more likely to be embarrassing for Amazon when customers enquire about why they can't order a book - 'because we are screwing our suppliers so hard we've refused to sell their books' doesn't sound too good.

06 Jun 08 15:39

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By Clive Keeble

Julian, it is not on the populist bestsellers that Amazon is weaking havoc against the traditional high street retailers, rather it is on the titles which are in the Amazon 1,000 to 100,000 sales rankings - especially when they are offered at 40 or 50% discount. The supermarkets offer very little range, but Amazon - with previous full collusion from too many publishers - is now established to destroy the remaining high street outlets. Amazon is still vulnerable on a local level, but nationally they have gained a near invincible foothold. If Tim Hely Hutchinson loses this battle then many authors work will be in danger of no longer having a showcase on UK's 'high streets'. This is a clear fact to anybody who has since 2001 studied Amazon's Marketplace incursions.

06 Jun 08 16:00

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By Jerry Bilek

well said Hely!

06 Jun 08 17:10

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By J A

In the end this will have a more damaging affect on Hachette then Amazon, does Hely really wish to see the largest book retailer lose its popularity? Their bullish attitude is already having a negative effect on b&m outlets with their refusal to accept returns of promotional stock - surely this will make most retailers cautious to order new titles when they have been burnt by Hachette in the past. The customers if not aware of one new author will just find another one, Hachette of course have to protect their business but unless they start selling all their product directly they need to appreciate the needs of the bookselling business.

07 Jun 08 08:55

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By Teri Howson

As an assistant at a booshop which will be closing this month, I am glad to see one of the publisher's taking a tough stance against Amazon and their demands. Once the high street bookshops are gone I would not be surprised to see these online retailers putting up their prices as there will be no competition around. The sooner all this ridiculous discounting stops the better: it devalues books and prevents customers from having the choice to shop in store or online.

07 Jun 08 14:20

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By June Austin

Perhaps more to the point, in the end it will put us all out of business regardless of how big or small we are. The fight againt Amazon and aggressive discounting is therefore a fight for our own survival.

07 Jun 08 15:19

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By JULIAN RIVERS

I regret that this is like saying that King Canute needs to take a tougher stand against the sea .

10 Jun 08 08:54

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