Booktopia secures US$22 million deal to distribute educational books
Online book retailer Booktopia has entered into a partnership with the student portal Zookal, extending its exposure to the lucrative and growing educational book market.
The deal comes as Booktopia reveals its academic and corporate book sales for the current financial year to date are running at 30 per cent higher than the previous corresponding period, with sales of $53 million to date.
CEO Tony Nash said the partnership with Zookal will ensure the company continues to expand in the education sector, one of its fastest-growing categories.
“Like Booktopia, Zookal has established a strong reputation for holding an extensive range of titles and delivering to customers in a timely fashion,” Nash said. “As their exclusive supplier and fulfillment partner, we look forward to maintaining these high standards.”
The deal allows Booktopia to source, supply and distribute all of Zookal’s physical book orders from a range of around 185,000 titles.
The agreement commences on May 1 with the full financial benefits for Booktopia to be felt next fiscal year.
According to the company, the partnership provides greater strategic relationships with suppliers as well as improved asset utilisation and economies of scale at Booktopia’s distribution centre at Lidcombe in Sydney’s west.
Zookal’s Alexandria distribution centre will be decommissioned.
Zookal Co-CEO Ahmed Haider said handing the fulfilment function to Booktopia will allow it to focus on the continued growth of its SAAS ed-tech platform which has surged in recent times due to the Covid-19 outbreak and leave book delivery with a trusted partner.
“The deal also allows Booktopia customers to have exposure to our innovative education tools Zookal Study, Homework Help, Test Prep and Textbook Answers adding significant value to their customer base.”
The educational book sector was estimated to account for $804 million of sales in Australia’s consumer book market last fiscal year. Combined with the books to business and books to government (B2B/B2G) sector, Booktopia estimates the total educational book market exceeded $1 billion during that period.