Amazon.com muscles into Europe

Amazon.com launched its European bookselling arm today. According to one analyst, the US company could easily kill off online ventures from European book giants like WH Smith and Waterstones unless they shape up their Internet marketing.

Jonathan Steel, chief executive of research and business consultancy at the Bathwick Group, said: "In Europe, Amazon is a tremendously powerful brand name which will stamp out WHSmith and Waterstones. It's a straight fight and Amazon will win."

Amazon bought UK-based Bookpages in April and it has now been renamed Amazon.co.uk. The site will redirect US customer orders to the Amazon.com operations and European orders will go through Bookpages' existing facilities. Amazon.co.uk will start processing and distributing orders directly from autumn.

Steel contiuned: "Although WHSmith's brand name will carry them in the UK, in Europe Amazon is far better known." He warned traditional high-street booksellers that they must shape up their Internet branding and marketing before it is too late.

A WHSmith spokeswoman was unable to comment because the company's recent acquisition of Internet Bookshop is yet to be finalised.