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Amazon has the reputation of perfection. In people's minds they offer to American customers every book in print in the country in pristine condition, at prices lower than anyone else offers. Their shipping is excellent and free with orders of $25.
Bookstores cannot top perfection. If the customer wants the attributes of Amazon, the bookstore cannot compete. The bookstore must offer things that Amazon doesn't offer at all. It's difficult for me to think of many such things (immediate gratification and hands on browsing are two that come to mind) because what Amazon offers is what I want.
I feel that this discussion is not limited to books. I think that we are seeing the internet boosting mail order at the expense of b&m stores. I can foresee many b&m's closing because they offer what can easily be purchased by mail order at a lower price.
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