09/08/97 MORE SHOOTING IN CYBERSPACE

MORE SHOOTING IN CYBERSPACE

THE BOOK WARS ARE HEATING up. On Aug. 27, Book Stacks, an online bookselling division of direct-marketing giant CUC International, based in Stamford, Conn., announced that buyers who pay an annual fee can get 40% discounts on hardcover and 30% on paperback titles. CUC says it will make its money on membership fees--$29.95 a year for the book-buying club--so it can sell books at cost. Amazon.com, the top online bookseller, makes its money from the markup on each book and, CUC says, won't be able to match Book Stacks without sacrificing margins. Will the move let Book Stacks challenge Amazon? CUC doesn't release figures for its operating units, but industry analysts say Book Stacks is coming from far behind. Still, the new approach could help.
EDITED BY KELLEY HOLLAND