Sydney bookshop Pages & Pages immediately renewed its Kindle "amnesty" by which customers can exchange their Amazon Kindle for a $50 gift voucher if they purchase the e-reader the bookstore sells. The Australian Booksellers Association (ABA), representing more than 400 speciality bookstores, is partnering with Kindle rival Kobo. "We signed up straight away,” said Jon Page, of Pages & Pages, who is urging other independent bookstores to follow. “Kobo was born out of Canadian bookseller Indigo and is now the true bookseller's choice when come to e-books and e-readers. "Our Kindle amnesty had a fantastic reception when we first launched it," Page said. "It helped to spread the word that the Kindle is an Amazon product that locks people into Amazon and there are alternative e-reading devices. "What Amazon are doing with e-books affects readers and bookshops all over the world.”

Page acknowledges that non-Digital Rights Management (DRM) books, which are mainly self-published books, can be added to Kindles. But, according to Page, all major book releases are protected by DRM and cannot be converted to Amazon's proprietary Kindle format; meaning a large majority, more than 90 per cent, of e-books for sale (and not free) are locked. Head of Dymocks, Australia's largest book chain, Steve Cox, says any Australian bookseller would be "mad" to sell Kindles. "Retailers like Wal Mart took the Kindle off their shelves in the US and retailers who enable Amazon to gain access to their customers' database and don't offer a broad range of books, physical books, hardbacks or e-books, are doing themselves a disservice." Amazon has more than 65 per cent of the e-book market in Australia and more than 75 per cent of e-readers owned in Australia are Kindles, according to the ABA. "Amazon limits readers' choices and walls them into their garden," Page said. "But you don't have to be." The new Kindle catalogue includes Australian classics from Text Publishing and titles from indigenous publishing house Magabala books. All print books will continue to be sourced from America. Amazon also announced premium Kindles would be sold through its Australian shopfront and authors using Amazon and Kindle to self-publish would earn a 70 per cent royalty.

Neil Lindsay, vice president of Amazon Kindle, said the new Kindle Store was customised for Australian customers, ''with local best sellers and curated lists relevant to Australians, and many titles from local publishers and authors such as Tim Winton, Karly Lane and Kate Morton''. In the lead up to Christmas, Dymocks has been running a multimedia advertising campaign stressing the curatorial value of a passionate and knowledgeable bookseller. Cox said the chain's profile had delivered "double-digit" sales growth last week and predicted a strong Christmas sales period. Dymocks would be monitoring Amazon's e-book prices, as "we do with other book retailers". "The Dymocks bookseller in Bundaberg can make a better recommendation than any algorithm on a website. They can deliver on a personal level and a bricks-and-mortar bookstore with online presence and a multi-channel strategy is a strong proposition." Tony Nash, co-founder of Booktopia.com.au – Australia's largest online book retailer - was confident his company's model of making readily available current and back-list Australian titles, free delivery offers for members and strong after-sales service would outmatch the global e-commerce retailer.

On track to record annual sales figures of $37 million, up 40 per cent on last year, Booktopia is appealing to readers' sense of loyalty, through its sponsorship of readers and writer conventions, book industry awards and donations to literacy causes. Some independent book stores, however, with or without Amazon on the scene, would need a strong Christmas to survive, said Nash. Bookworld — the previous Borders online store, relaunched in August 2012 — is launching on Tuesday a major national marketing campaign encouraging Australians to buy their books locally this Christmas. The store is offering an "Amazon price guarantee" in which it promises to beat Amazon prices by 10 per cent and provide free delivery so Australians don't shop overseas.