How Your Local Bookshop Outsmarts Amazon—And Why Readers Love It

If you think your local bookstore is quietly fading away in the shadow of Amazon.com Inc.’s (AMZN) online empire, you might need to think again. While Amazon controls a significant percentage of U.S. book distribution, here’s a plot twist: independent bookstores are quietly surging, and their strategies are providing lessons for other small retailers.

Book Sales in the Age of Amazon

Amazon’s entry into the book market in 1995 marked the beginning of a seismic shift for independent bookstores. The company’s aggressive pricing strategy—often selling books at or below cost—made it nearly impossible for local bookstores to compete on price alone. Between 1998 and 2020, over half of independent bookstores in the U.S. closed, with Amazon controlling 64% of online print book sales and 67% of e-book sales by 2014.

Despite these overwhelming challenges, independent bookstores have shown remarkable resilience, even as Amazon closed its attempt at a retail storefront chain earlier this decade. The American Booksellers Association reports that independent bookstore numbers have grown from 1,701 in 2021 to over 2,500 in the mid-2020s. This resurgence is largely attributed to the increasing demand for tangible browsing experiences that digital platforms can’t replicate. In surveys, customers report appreciating surprise reads, interacting with knowledgeable staff, and participating in community events like book signings, author readings, and book clubs.

How Independent Bookshops Are Thriving

• Community engagement and local identity: Independent bookstores have positioned themselves as vital community hubs, offering more than just books. They host author events, book clubs, children’s story hours, and workshops, transforming their spaces into gathering spots that foster local culture and relationships. According to IBIS analysts, successful indies carefully curate their selection to match local tastes rather than offering overwhelming options.
• Personalized Curation and Expertise: Unlike Amazon’s algorithm-driven recommendations, indie bookstores excel at curating unique and specialized selections. Knowledgeable staff provide tailored suggestions, introduce readers to lesser-known authors, and create a browsing experience that feels personal and serendipitous.
• Diversification and specialization: Many bookstores have expanded their offerings to include gifts, stationery, and specialized inventory. IBIS analysts also highlighted the growth of niche bookstores, with romance-focused shops expanding from two to at least 20 nationwide, and cookbook-focused stores seeing steady 8% annual growth over the past decade. Platforms like Bookshop.org have also helped independent bookstores compete more effectively online.
• Adapting to changes online: The rise of BookTok has significantly boosted readership, with authors popular on the platform seeing major increases in sales. Indie bookstores have capitalized on these trends by embracing social media, offering subscription services, providing ways to order e-books through them, and developing membership programs that deepen customer relationships.

Bottom Line

Independent bookstores have thrived by focusing on what makes them special: authentic community connections, expertly curated selections, and inviting spaces that host diverse events. In addition to showing they can offer a value proposition that extends far beyond Amazon’s reach, the success of many independent bookstores offers lessons for other brick-and-mortar retailers to follow, like creating community spaces that make your business a local hub.