Re: Cutting their own throat?
@Ralph 5. I was being slighlty flippant (I work in e-commerce for a bricks and mortar retailer, so buildings are quite important to me), but the bottom line is that individuals like yourself who want to browse before buying, don't cover the overheads of running a store chain. Waterstones HAVE to come up with a plan for migrating the bulk of their customers to online, with a much reduced store chain, probably for "distressed" purchases (e.g. in airports etc.) This plan simply drops their customers into the Amazon universe, with all the attendant enticement from Amazon to keep them there.
I imagine Waterstones are getting a cut of revenue; either as a customer bounty or a "lifetime value" type deal where they get a ongoing rev share. Problem with those types of deal is that customers routinely find ways to break pretty crm models (mainly by accident) and Waterstones will gradually find its customers just leached away by Amazon.
I'm a classic example; I LOVE browsing bookstores, but since I started using the Kindle app, I have to make time to go to a bookstore, time I simply don't have, and time that is becoming increasingly pointless anyway; I currently have nine books pre-ordered on my Kindle that will drop in right across the summer; I just don't need a bookshop; and even if the bookshop came up with some cool browse-in-store/deliver-to-ebook machanic, its still a convulated step that the majority of customers won't use.