The online bookstore as competitive edge: some are undisputed revenue generators; some are the best marketing tools a brick-and-mortar bookstore ever had. Either way, the online campus store is here to stay

University Business, Feb, 2004 by Alana Klein

When the online college bookstore boom hit five or so years ago, many college and university administrators were excited about the potential and, at the same time, apprehensive about the impact. Would the online stores be profitable, or a cost drain? Would students, faculty, and staff utilize the sites, or would they comparison shop online and buy books from more competitive retailers? Their concerns, as it turns out, were valid. Yet, even though today students do buy school texts and books online and elsewhere, the value and importance of the online campus store has certainly been established. In an age when Internet sales are reportedly growing by 20 percent annually, and an IHE's Web presence is a strategic differentiator, schools must offer comprehensive and user-friendly e-bookstore access if they wish to remain competitive. The big surprise is, an online bookstore does not have to generate hard revenue in order to be considered a success. Most colleges and universities with active bookstore sites see them not only as essential marketing tools for their physical stores, but also as invaluable real-time product and campus news information sources for students, alumni, and faculty. Whether it's a moneymaker or a cost center, the online bookstore is now a vital amenity for everyone affiliated with the school.

Still, it is how an online store is managed that largely contributes to its success. And while some schools have opted to manage their site in-house (most frequently with the help of the IT department and a Web design team, but sometimes via off-the-shelf management software), others have leased out their site for management by contract retailers.

Over the past five years, through trial and error, many schools have discovered what works for their site and what doesn't. Now, as Web site development has become more advanced, schools are indeed starting to get innovative with their retailing ventures. Many have aggressively sought to add features that will set their sites apart from both IHE and Web competitors in general. Who's doing what and how are they faring? Take a look at these snapshots of seven schools determined to build long-term online bookstore success, each via a unique vision.

University of Oregon

Store: University of Oregon Bookstore--www.bookstore.com

Serving: 20,000 students (plus faculty, staff, and alumni)

Web Launch: 1998

Store Type: Independent, nonprofit

Contact: Jim Williams, general manager

What's for Sale: Apparel general merchandise

Hottest Seller: Apparel

Partnerships: Dell Apple, Booksense

Competitive Features:

* Home page links directly to bookstore site, providing easy access/convenience for viewers

* Weekly Featured Items section

* Staff Favorites section

* Textbook reservations

* Textbook requisitions for faculty

* Bestseller List of fiction and nonfiction

* Shipping is $5-$13, based on order

* "Because the bookstore is owned not by the university, but by the students, faculty, and staff, we hove more autonomy." Sales Stats: Online sates increase 10-12% annually

* "Our relationship with the athletic department has helped us grow sales."

Challenge: "We haven't sold books online, but will, to meet customer demand."

Bottom Line: Profitable

* "The online store is not only profitable, it has the single most potential to grow our bookstore sales."

University of Vermont

Store: UVM Bookstore--uvm.store.uvm.edu Serving: 9,000 students (plus faculty, staff, and alumni)

Web Launch: 1998

Store Type: University owned, for-profit

Contact: Jay Menninger, manager

What's for Sale: Textbooks, general books, apparel, dorm supplies (including refrigerators and mattresses)

Hot Seller: Vermont maple syrup ($50,000 in sales over the last five years, with a sates increase of 10-15% each year)

Hottest Seller: Textbooks

Partnerships: Nebraska Book Company (providing management software, outsourced services and staff, and products for college bookstores), Boise Cascade

* "The Nebraska Book Company's software is a slick system. It operates on fairly real time, so if it says we have something in stock, we have it in stock."

Competitive Features:

* Offers online-only apparel promotions

* Textbook reservations

* Textbook requisitions for faculty

* $7.95 shipping (flat rate)

* Promotes bookstore site in-store by passing out free Web site [awards, coffee cups, and pins

Sales Stats: Nonbook online sales have increased 20-25% annually

* "If only in-store sales were doing as well as online sales, we could have retired. They're up 7 percent, but that's not as good as online sales. "

* Total online sales have grown from $25,000 in 2000, to $548,000 in 2003

* "Our textbook sales skyrocketed after we added online textbook reservation in "99."

Challenge: "The site is huge compared to what I've seen at other schools. As it is, everybody wants us to be L.L Bean, so we're trying to meet that demand by making the site even bigger."

Bottom Line: Profitable

Swarthmore College

Store: Swarthmore College Bookstore--bookstore.swarthmore.edu

Serving: 1,350 students (plus faculty, staff, and alumni)