If you POINT them to quality and deliver something “the others ain't got”, then you can survive.
That may be bringing more authors through on book tours. That may be offering USED as well as new merchandise.
If you think you can compete on price and selection, Amazon.com will eat your lunch because they just “list” the full Books In Print catalog so they list things “they think they can get” and offer deep enough discount pricing that you probably won't beat them there.
So you need “impulse” purchasing (this book is so interesting, I have to buy it now) and dependable “evergreen” books that will always sell (won't go out of date but someone who's never seen it before or is looking for a gift will buy a copy).
Having a guest in the store associated with the book also leads to a “buy it now” mentality and offers something that the online retailers don't.
But Barnes & Noble, Borders, Bookstop, et al BORE me. They all offer the same 120 books in any category I frequent. There will be books that I know are out there that they never stock. I won't “special order” a copy because I can do it my self, online, faster, and cheaper. I want to “look and feel” and then buy a copy.
Also so many publishers/distributors are dumping books on the market at reduced pricing sometimes 6 months after they come out. I don't like getting burned paying full price for something I can buy new at Half Price Books 6-9 months later.
Find a niche and market to it. Having some out of print and discount titles also keeps you competitive.
I had a serious offer towards purchasing a bookstore.
The problem is that I know what I want to offer and sell but I don’t know whether I’d be successful at doing so.
The retailers of new books around here have been stocking used titles for some years already — a practice that B&N brought to town when it discontinued its section for software.
The locally-owned big bookstore was hideously leftist, with the reprehensible demagogue Noam Chomsky’s titles displayed here and there in different sections of the store. Now that the jackoff who was responsible for that travesty has kicked off, I shop there more regularly, but AFAIC that damaged the store’s reputation. But they’d had remainder titles for as long as they’d been in business, and had to respond to B&N’s move by putting in a section of used.
Luckily we’ve never lacked for independent used booksellers in this town and area.