Booktopia, Australia’s largest online book retailer, went into voluntary administration last week. The store’s closure would be particularly wounding for some Australian small publishers that have grown to rely on Booktopia as their primary sales channel. The news comes as Australian physical bookstores strive for innovation to compete with massive online brands. While some writers and readers are stunned at Booktopia’s imminent closure, the news is unsurprising to many in the industry.
Booming business across the COVID-19 pandemic saw Booktopia pour millions of dollars into new warehouse technology and other growth ventures, despite posting financial losses. In 2023, the company doubled its warehouse space and introduced automated packaging. The move may have been the lethal wound in the company’s bottom line, with its losses skyrocketing. Booktopia reported a loss of $16.7 million in the six months up to December last year, compared to just over $3 million a year previously.
