However, selling “recommendations” seems much less ethical. One would expect that “paperback of the year” involved some kind of objective assessment rather than buying your way onto a list. Similarly, the reviews are normally presented as editorial decisions as opposed to adverts.

The selling of a recommendation undoubtedly affects the credibility of suggestions by Waterstone’s. If I remember correctly, wasn’t its original brand built on the value of endorsement from staff who were informed about books?

If I cannot trust that I am going to get a good read, or a valued present, as a result of advice from Waterstone’s, then their brand becomes diminished - I may just as well find the book cheaper at Tesco or online.

Your point about it being the only valid business model is a good one. Taking this point further, it actually occurred to me that bricks and mortar retailers (such as Waterstones) may actually be too scared to enter into any alternative business models for fear of failure.

I think most people can safely see that to take amazon on at their own game would be a risky model on which to base your future plans, so maybe they are having to pursue the only business model which a) they know and are comfortable with and b)provides them with any sort of revenue.

I firmly believe that they have an opportunity to establish a business by creating the community first. How many businesses would give their right arm for customers who spend up to an hour in their store?

If this were happening on the internet, Waterstones may as well shut up shop.

I can’t help thinking it draws parralels to the (apologies for this!) Wal-Mart blogging “scandal” a couple of years back.

The force-feeding of recommendations caused a riot.

There surely has to be a danger if this story goes viral, that those online retailers promoting books legitimately need to come out and say so. Those that don’t have to legitimately explain why. These revelations have the power to undermine a whole industry (or at least one of its sales channels).

There surely has to be an opportunity for book shops to engage with communities (or focus groups at a push!) by creating book clubs that would review books for them. The end result ends up on display. Engaging with the book-buying community, bringing yourself closer to the customer is surely going to create a more positive brand image as well as providing more consumer insight than a random survey might!

I am going for a calming 10 minute break now!