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Seems to me that you have two issues. 1) What is your purpose? Their are lots of choices and there needs to be a reason to visit you. 2) How do you reach critical mass?
Here is what I would try. Establish yourselves as experts on a Genre (to start with, you can expand to other Genre's later). Actively go out and find good books in that genre. Build an inventory of books that are good -- you can publish a discard tally just to show you have gone through the drek for us, but their is no need to cloud the picture with junk. Build a reputation as a good place to go if you are looking for a good book in the Genre.
In order to get started, set yourself up as an affiliate. Your book listings can be a combination of books you 'publish' and those that are on Amazon and other affiliate sites. When you add an author as an affiliate link you can visit their website and offer to carry their book directly to offer them a better margin on sells through your site. As you prove your volumes by actual affiliate sells, you can revisit the author to show them how much more they can make if they go direct.
It lets you start small but have real content.
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