Printed on: Friday, September 3, 2010
Launch of Amazon.ca Draws Controversy from Booksellers Association and Competitors
by Gail Chiasson
Jun 25, 2002
The Canadian Booksellers Association and Indigo Books and Music have called publicly on the Minister of Canadian Heritage and the Minister of Industry to see that the Canadian book policy is applied to Amazon.com - which launched Amazon.ca on June 25/02 - "in the same spirit that has dictated the government's pro-Canada policy in the past."

Amazon.ca announced that it will bring Canadians a selection of more than 1.5 million books, CDs, videos and DVDs in English and French, in a shopping experience with prices in Canadian dollars and local shipping from Canada Post Corporation. Assured Logistics, part of the Canada Post group of companies, is to handle fulfillment services for Amazon.ca.

However, the CBA, headed by Todd Anderson, president, and Heather Reisman, Indigo's president and CEO whose company runs the Chapters/Indigo retail Web site (www.chapters.indigo.ca), says that the Canadian book policy requires that Canadians must control any company engaged in the distribution, publishing or retailing of books in Canada, and that this doesn't appear to be the case with Amazon.ca. In fact, they say, Canada has applied a double standard, since it didn't allow U.S. company Borders to open shop in Canada, in partnership with Canadian interests.

Amazon.ca is in direct competition with chapters.indigo.ca. It is offering 30% discount on books costing more than Cdn$30, and introductory free shipping on orders costing more than Cdn$75. It also announces speed and regular low rates of shipping from within Canada. Web content and ordering is available in both French and English.

"Amazon.ca provides great savings and convenience to Canadian customers and allows us to source products from Canadian publishers and distributors and work with them to increase online sales of their merchandise," said Jeff Bezos, founder and CEO of Amazon.com. "Amazon.ca will not only serve
Canadians, but will also export Canadian products all over the world, increasing the visibility and reach of Canadian writers and artists."

Amazon.ca is also offering the Amazon Associates Program, which enables Web site owners to earn referral fees by directing their site visitors to Amazon.ca, which pays commissions of up to 15 per cent (up to 30% until July 31/02) for sales generated by referred visitors.

Amazon.ca is apparently able to get around the Canadian book policy by using Assured Logistics to ship books from large distributors. The CBA says that Amazon's entrance into Canada violates federal foreign ownership rules.

Amazon.com, from Seattle, is known as the most successful online retailer.

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