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With sales momentum, Bookshop.org looks to future in its fight with Amazon

If Gutenberg were alive today, he’d be a very busy angel investor.

With book sales booming during the COVID-19 lockdowns last year, the humble written word has suddenly drawn the limelight from VCs and founders. We’ve seen a whole cavalcade of new products and fundings, including algorithmic recommendation engine BingeBooks, book club startups like Literati and the aptly named BookClub, as well as streaming service Litnerd. There have also been exits and potential exits for Glose, LitCharts and Epic.

But the one company that has captured the imagination of a lot of readers has been Bookshop.org, which has become the go-to platform for independent local bookstores to build an online storefront and compete with Amazon’s juggernaut. The company, which debuted just as the COVID-19 pandemic was spreading in January 2020, rapidly garnered headlines and profiles of its founder Andy Hunter, an industrious publisher with a deep love for the reading ecosystem.

After a year and a half, how is it all holding up? The good news for the company is that even as customers are returning to retail including bookstores, Bookshop hasn’t seen a downturn. Hunter said that August sales this year were 10% higher than July’s, and that the company is on track to do about as many sales in 2021 as in 2020. He contextualized those figures by pointing out that in May, bookstore sales increased 130% year over year. “That means our sales are additive,” he said.

Bookshop now hosts 1,100 stores on its platform, and it has more than 30,000 affiliates who curate book recommendations. Those lists have become central to Bookshop’s offering. “You get all these recommendation lists from not just bookstores, but also literary magazines, literary organizations, book lovers, and librarians,” Hunter said.

Bookshop, which is a public-benefit corporation, earns money as all ecommerce businesses do, by moving inventory. But what differentiates it is that it’s fairly liberal in paying money to affiliates and to bookstores who join its Platform Seller program. Affiliates are paid 10% for a sale, while bookstores themselves take 30% of the cover price of sales they generate through the platform. In addition, 10% of affiliate and direct sales on Bookshop are placed in a profit-sharing pool which is then shared with member bookstores. According to its website, Bookshop has disbursed $15.8 million to bookstores since launch.

The company has had a lot of developments in its first year and a half of business, but what happens next? For Hunter, the key is to build a product that continues to engage both customers and bookstores in as simple a manner as possible. “Keep the Occam’s razor,” he says of his product philosophy. For every feature, “it’s going to add to the experience and not confuse a customer.”

That’s easier said than done, of course. “For me, the challenge now is to create a platform that is extremely compelling to customers, that does everything that booksellers want us to do, and to create the best online book buying and book selling experience,” Hunter said. What that often means in practice is keeping the product feeling “human” (like shopping in a bookstore) while also helping booksellers maximize their advantages online.

Bookshop.org CEO and founder Andy Hunter. Image Credits: Idris Solomon.

For instance, Hunter said the company has been working hard with bookstores to optimize their recommendation lists for search engine discovery. SEO isn’t exactly a skill you learn in the traditional retail industry, but it’s crucial online to stay competitive. “We now have stores that rank number one in Google for book recommendations from their book lists,” he said. “Whereas two years ago, all those links would have been Amazon links.” He noted that the company is also layering in best practices around email marketing, customer communications, and optimizing conversion rates onto its platform.

Bookshop.org offers tens of thousands of lists, which provide a more “human” approach to finding books than algorithmic recommendations.

For customers, a huge emphasis for Bookshop going forward is eschewing the algorithmic recommendation model popular among top Silicon Valley companies in lieu of a far more human-curated experience. With tens of thousands of affiliates, “it does feel like a buzzing hive of … institutions and retailers who make up the diverse ecosystem around books,” Hunter said. “They all have their own personalities [and we want to] let those personalities show through.”

There’s a lot to do, but that doesn’t mean dark clouds aren’t menacing on the horizon.

Amazon, of course, is the biggest challenge for the company. Hunter noted that the company’s Kindle devices are extremely popular, and that gives the ecommerce giant an even stronger lock-in that it can’t attain with physical sales. “Because of DRM and publisher agreements, it’s really hard to sell an ebook and allow someone to read it on Kindle,” he said, likening the nexus to Microsoft bundling Internet Explorer on Windows. “There is going to have to be a court case.” It’s true that people love their Kindles, but even “if you love Amazon… then you have to acknowledge that it is not healthy.”

I asked about whether he was worried about the number of startups getting funded in the books space, and whether that funding could potentially crowd out Bookshop. “The book club startups — they are going to succeed by putting books — and conversations about books — in front of the largest audience,” Hunter believes. “So that is going to make everyone succeed.” He is concerned though with the focus on “disruption” and says that “I do hope they succeed in a way that partners with independent bookstores and members of the community that exist.”

Ultimately, Hunter’s strategic concern isn’t directed to competitors or even the question of whether the book is dead (it’s not), but a more specific challenge: that today’s publishing ecosystem ensures that only the top handful of books succeed. Often dubbed “the midlist

problem,” Hunter is worried about the increasingly blockbuster nature of books these days. “One book will suck up most of the oxygen and most of the conversation or the top 20 books [while] great innovative works from young authors or diverse voices don’t get the attention they deserve,” he said. Bookshop is hoping that human curation through its lists can help to sustain a more vibrant book ecosystem than recommendation algorithms, which constantly push readers to the biggest winners.

As Bookshop heads into its third year of operations, Hunter just wants to keep the focus on humans and bringing the rich experience of browsing in a store to the online world. Ultimately, it’s about intentionality. “I really want people to understand that we are creating the future we live in with all of these small decisions about where we shop and how we shop and we should remain very conscious about how we deliberate about those,” he said. “I want Bookshop to be fun to shop at and not just a place to do your civil duty.”

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Can AI help you binge books? BingeBooks is a new service to do … exactly that

The pandemic has been terrible for many industries, but the book industry has gotten a rare reprieve in an otherwise dismal past decade. Locked in homes and forced to socially distance from others, us humans have more time on our hands and more need to connect to characters than ever before.

That surge in interest in books has also led to a surge in interest from founders to rethink aspects of the reading experience. We profiled Salt Lake City-based BookClub a few weeks ago, which is designed to create author-led book clubs to share the reading experience with others. Other startups like serialized fiction platform Radish have raised massive new rounds as reading hits a new stride.

Before you even get to your book club though, how do you decide what to read and how do you find great books? (Outside, of course, the TechCrunch best books of 2020 as recommended by writers and VCs, which a source who declined to be named since they are writing this story told me is the only ‘best books of the year’ list you need to read).

That’s where BingeBooks comes in. BingeBooks wants to become the Netflix channel surfing platform for book lovers, designed to help you find the next great book based on what you have previously read.

That might seem like Goodreads, the dominant dinosaur in the space, but there is so much more here. BingeBooks was developed by Authors A.I., a service pioneered by novelists and machine learning experts to build an AI-driven editor called Marlowe that can evaluate a draft of a book and provide constructive feedback, such as around pacing, consistency of characters in the plot, and more.

The team at Authors A.I. realized that the same technology that can evaluate, analyze and interpret a book for authors can also help identify patterns between different books and make recommendations to readers as well.

BingeBooks launched just before the Thanksgiving holiday last month, and has titles from the big brand houses like Penguin Random House, HarperCollins, Hachette, Macmillan as well as more than 7,000 independent titles.

“BingeBooks is really focused on reader discovery,” Alessandra Torre, president and co-founder of Authors A.I. said. “There really isn’t anything where it’s a safe, happy community where readers and authors can interact and that’s what we’re building.” She would know: Torre is the author of a number of bestsellers and 23 books across her writing career. She said that more than 120 authors were early stakeholders in the BingeBooks product.

Discovery is an issue for readers obviously, but it’s also an issue for authors. Authors, particularly independent authors without prodigious marketing budgets from the major presses, struggle to build a reading audience. Their work may well be the best in the world, but if you write it, they won’t necessarily come. BingeBooks wants to bridge the gap, and help both sides reach a better reading experience.

She’s joined by long-time author JD Lasica and Matthew Jockers, the writer of The Bestseller Code and a professor of English at Washington State University, where he specializes in computational analysis of text.

BingeBooks and Authors A.I. so far has been self-funded, and Lasica said that they are considering how to fundraise in the future now that their products are in the marketplace. Lasica said that crowdfunding might make more sense given the marketplace aspect of the company and their desire to engage more potential users onto the platform. The product is early, and the team hopes to expand its community features in early 2021.

Are we doomed to rewatch bad TikTok videos for the rest of our lives? Or can the kind of algorithms that have helped video services dominate our media culture be applied to reading? That’s what BingeBooks is asking, and hopefully, answering.

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How to read fiction to build a startup

“The book itself is a curious artefact, not showy in its technology but complex and extremely efficient: a really neat little device, compact, often very pleasant to look at and handle, that can last decades, even centuries. It doesn’t have to be plugged in, activated, or performed by a machine; all it needs is light, a human eye, and a human mind. It is not one of a kind, and it is not ephemeral. It lasts. It is reliable. If a book told you something when you were 15, it will tell it to you again when you’re 50, though you may understand it so differently that it seems you’re reading a whole new book.”—Ursula K. Le Guin

Every year, Bill Gates goes off-grid, leaves friends and family behind, and spends two weeks holed up in a cabin reading books. His annual reading list rivals Oprah’s Book Club as a publishing kingmaker. Not to be outdone, Mark Zuckerberg shared a reading recommendation every two weeks for a year, dubbing 2015 his “Year of Books.” Susan Wojcicki, CEO of YouTube, joined the board of Room to Read when she realized how books like The Evolution of Calpurnia Tate were inspiring girls to pursue careers in science and technology. Many a biotech entrepreneur treasures a dog-eared copy of Daniel Suarez’s Change Agent, which extrapolates the future of CRISPR. Noah Yuval Harari’s sweeping account of world history, Sapiens, is de rigueur for Silicon Valley nightstands.

This obsession with literature isn’t limited to founders. Investors are just as avid bookworms. “Reading was my first love,” says AngelList’s Naval Ravikant. “There is always a book to capture the imagination.” Ravikant reads dozens of books at a time, dipping in and out of each one nonlinearly. When asked about his preternatural instincts, Lux Capital’s Josh Wolfe advised investors to “read voraciously and connect dots.” Foundry Group’s Brad Feld has reviewed 1,197 books on Goodreads and especially loves science fiction novels that “make the step function leaps in imagination that represent the coming dislocation from our current reality.”

This begs a fascinating question: Why do the people building the future spend so much of their scarcest resource — time — reading books?

Image by NiseriN via Getty Images. Reading time approximately 14 minutes.

Don’t Predict, Reframe

Do innovators read in order to mine literature for ideas? The Kindle was built to the specs of a science fictional children’s storybook featured in Neal Stephenson’s novel The Diamond Age, in fact, the Kindle project team was originally codenamed “Fiona” after the novel’s protagonist. Jeff Bezos later hired Stephenson as the first employee at his space startup Blue Origin. But this literary prototyping is the exception that proves the rule. To understand the extent of the feedback loop between books and technology, it’s necessary to attack the subject from a less direct angle.

David Mitchell’s Cloud Atlas is full of indirect angles that all manage to reveal deeper truths. It’s a mind-bending novel that follows six different characters through an intricate web of interconnected stories spanning three centuries. The book is a feat of pure M.C. Escher-esque imagination, featuring a structure as creative and compelling as its content. Mitchell takes the reader on a journey ranging from the 19th century South Pacific to a far-future Korean corpocracy and challenges the reader to rethink the very idea of civilization along the way. “Power, time, gravity, love,” writes Mitchell. “The forces that really kick ass are all invisible.”

The technological incarnations of these invisible forces are precisely what Kevin Kelly seeks to catalog in The Inevitable. Kelly is an enthusiastic observer of the impact of technology on the human condition. He was a co-founder of Wired, and the insights explored in his book are deep, provocative, and wide-ranging. In his own words, “When answers become cheap, good questions become more difficult and therefore more valuable.” The Inevitable raises many important questions that will shape the next few decades, not least of which concern the impacts of AI:

“Over the past 60 years, as mechanical processes have replicated behaviors and talents we thought were unique to humans, we’ve had to change our minds about what sets us apart. As we invent more species of AI, we will be forced to surrender more of what is supposedly unique about humans. Each step of surrender—we are not the only mind that can play chess, fly a plane, make music, or invent a mathematical law—will be painful and sad. We’ll spend the next three decades—indeed, perhaps the next century—in a permanent identity crisis, continually asking ourselves what humans are good for. If we aren’t unique toolmakers, or artists, or moral ethicists, then what, if anything, makes us special? In the grandest irony of all, the greatest benefit of an everyday, utilitarian AI will not be increased productivity or an economics of abundance or a new way of doing science—although all those will happen. The greatest benefit of the arrival of artificial intelligence is that AIs will help define humanity. We need AIs to tell us who we are.”

It is precisely this kind of an AI-influenced world that Richard Powers describes so powerfully in his extraordinary novel The Overstory:

“Signals swarm through Mimi’s phone. Suppressed updates and smart alerts chime at her. Notifications to flick away. Viral memes and clickable comment wars, millions of unread posts demanding to be ranked. Everyone around her in the park is likewise busy, tapping and swiping, each with a universe in his palm. A massive, crowd-sourced urgency unfolds in Like-Land, and the learners, watching over these humans’ shoulders, noting each time a person clicks, begin to see what it might be: people, vanishing en masse into a replicated paradise.”

Taking this a step further, Virginia Heffernan points out in Magic and Loss that living in a digitally mediated reality impacts our inner lives at least as much as the world we inhabit:

“The Internet suggests immortality—comes just shy of promising it—with its magic. With its readability and persistence of data. With its suggestion of universal connectedness. With its disembodied imagines and sounds. And then, just as suddenly, it stirs grief: the deep feeling that digitization has cost us something very profound. That connectedness is illusory; that we’re all more alone than ever.”

And it is the questionable assumptions underlying such a future that Nick Harkaway enumerates in his existential speculative thriller Gnomon:

“Imagine how safe it would feel to know that no one could ever commit a crime of violence and go unnoticed, ever again. Imagine what it would mean to us to know—know for certain—that the plane or the bus we’re travelling on is properly maintained, that the teacher who looks after our children doesn’t have ugly secrets. All it would cost is our privacy, and to be honest who really cares about that? What secrets would you need to keep from a mathematical construct without a heart? From a card index? Why would it matter? And there couldn’t be any abuse of the system, because the system would be built not to allow it. It’s the pathway we’re taking now, that we’ve been on for a while.” 

Machine learning pioneer, former President of Google China, and leading Chinese venture capitalist Kai-Fu Lee loves reading science fiction in this vein — books that extrapolate AI futures — like Hao Jingfang’s Hugo Award-winning Folding Beijing. Lee’s own book, AI Superpowers, provides a thought-provoking overview of the burgeoning feedback loop between machine learning and geopolitics. As AI becomes more and more powerful, it becomes an instrument of power, and this book outlines what that means for the 21st century world stage:

“Many techno-optimists and historians would argue that productivity gains from new technology almost always produce benefits throughout the economy, creating more jobs and prosperity than before. But not all inventions are created equal. Some changes replace one kind of labor (the calculator), and some disrupt a whole industry (the cotton gin). Then there are technological changes on a grander scale. These don’t merely affect one task or one industry but drive changes across hundreds of them. In the past three centuries, we’ve only really seen three such inventions: the steam engine, electrification, and information technology.”

So what’s different this time? Lee points out that “AI is inherently monopolistic: A company with more data and better algorithms will gain ever more users and data. This self-reinforcing cycle will lead to winner-take-all markets, with one company making massive profits while its rivals languish.” This tendency toward centralization has profound implications for the restructuring of world order:

“The AI revolution will be of the magnitude of the Industrial Revolution—but probably larger and definitely faster. Where the steam engine only took over physical labor, AI can perform both intellectual and physical labor. And where the Industrial Revolution took centuries to spread beyond Europe and the U.S., AI applications are already being adopted simultaneously all across the world.”

Cloud Atlas, The Inevitable, The Overstory, Gnomon, Folding Beijing, and AI Superpowers might appear to predict the future, but in fact they do something far more interesting and useful: reframe the present. They invite us to look at the world from new angles and through fresh eyes. And cultivating “beginner’s mind” is the problem for anyone hoping to build or bet on the future.

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Wattpad takes ‘chat fiction’ beyond text with launch of Tap Originals

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Amazon’s chat fiction app Rapids ties up with Amazon Studios with launch of ‘Signature Stories’

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Chaos Monkeys is this year’s best non-business book about business

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Reco thinks books are better when they’re recommended by people you trust

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Inside the ape cage with Antonio Garcia Martinez, author of Chaos Monkeys

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Litsy is a book-focused social network that goes beyond reviews

books If you’re a book lover, Litsy might be the social app for you.
The startup was founded by Todd Lawton and Jeff LeBlanc, who previously launched the book-themed clothing company Out of Print. Lawton told me the idea for Litsy came from connecting with Out of Print fans at events like book festivals and comic book conventions.
“We realized that there’s a really passionate… Read More

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How To Use A Book Club To Turn Your Startup Into A Learning Machine

Book Club - ALICE - pic For me and my co-founders, building our first tech company from the ground up has been both an exhilarating and humbling process. Coming from a corporate background, we had limited experience in scaling a business — and there was a lot of learning to do. As the team grew, the challenges multiplied; many of us were adjusting to the shifting needs of a startup. There was an anxiety to… Read More

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