Final answer:
Amazon has revolutionized the book selling industry by using a production model and cost structure that allow it to undercut the prices of traditional bookstores, leading to many closures and the dominance of online book sales.
Step-by-step explanation:
How Amazon Changed the Book Selling Industry
Amazon.com has revolutionized the book selling industry by altering the way in which consumers purchase and interact with books. This transformation occurred as Amazon implemented a production model and cost structure designed to undercut competitors' prices, including those of physical bookstores like Borders and Barnes & Noble. Amazon's success can be attributed to its ability to offer a vast selection of books at lower prices and convenience through online delivery, even when including the cost of shipping.
Prior to Amazon's rise, books were sold primarily through independent bookstores and larger chains in urban areas. In contrast, Amazon offered an unprecedented range and availability of books, which, combined with aggressive pricing and the ease of online shopping, drew customers away from traditional bookstores. Ultimately, many bookstores have closed down or are struggling to survive in the modern retail environment dominated by Amazon.
Amazon's innovative approach to selling books online has compelled consumers to transition from purchasing in physical stores to buying books through the internet. The company's scalable business model allows for cost-effective operations, efficiency in shipping, and economies of scale, leading to lower prices that have become a cornerstone of Amazon's strategy to dominate the market.