A bookstore chain with hundreds of bookseller online bookselling sites and a $1 billion book market is on the verge of a $2.5 million investment to expand its online bookstore, according to people familiar with the matter.
The company is building a brand-new online bookstore that will be located in a former warehouse on campus.
It is expected to open by late 2017, according the people, who spoke on the condition of anonymity because the transaction is private.
The chain’s online booksellors, who have been operating for about two years, have grown quickly over the last decade, according a report from the nonprofit National Book Foundation.
The online bookseller market grew $7.9 billion in 2016, and the total revenue is expected by the end of 2020 to exceed $5.3 billion, according NBF.
The National Book Awards named U.S. bookselling as one of the top 20 bestsellers last year, and Amazon has been expanding its online bookshop offerings in recent years.
The new store will be the second online bookstore at UC Davis, after a $600,000 addition in January.
In February, the university approved a $450,000 renovation project for the campus bookstore.
The university’s online bookstore market, which includes Amazon and Barnes & Noble, is projected to grow about 40 percent to $2 billion in 2020, according research firm eMarketer.
It could take years to grow that market as people start to shop more online, said Tim Cushing, the executive director of the University Booksellers Association.
“You’re talking about a long-term business,” he said.
The University Bookstores Association has been fighting to keep UC Davis open as a place for people to come to browse, study, and learn.
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