One interesting feature of distribution channels happens when retailer, in this case, Amazon, integrates backwards with intent of attracting suppliers (authors with brand names) and expectation of using other outlets (traditional bookstores) for full distribution of its products. In this case, largest traditional bookstore chain, that also has a important online business, has made decision not to stock Amazon's products in hope of discouraging authors from signing publication contracts with Amazon. Effective distribution channels call for vertical cooperation, here among authors and their agents, publishers, and retail outlets. But vertical integration invites conflicts.

Respond the following problems

Was Amazon wise to get into publishing additionally to its very strong position in retailing new and used books? Describe your answer.

If you were the popular author of children's fiction (with successful past relationship with traditional publisher) and your agent (another member of book publishing channel) asked you whether to approach Amazon regarding publication of your latest project, what would you say? describe why?

Would it matter if you were working on first book and had no previous relationship with editor or publisher? If "yes." why would this make difference?

In your judgment, do you believe that either Amazon or Barnes & Noble are probable to change strategic decisions reported in this article? describe why?