Rakuten is set on challenging Amazon’s global dominance by appealing to the third-party merchants Amazon works with today and by growing it’s digital content business to compete with the Kindle.

We recently learned about the company’s strategy through the eyes of Neel Grover, the CEO of Buy.com, Rakuten’s online shopping subsidiary in the U.S.

For now, Rakuten is admittedly Amazon’s much smaller competitor, though it is dominant in Japan.

The publicly held company is worth $14.5 billion compared to Amazon’s $85 billion market capitalization, and it pales in comparison to Amazon’s mass in the U.S. Buy.com is ranked 410th here versus Amazon’s sixth-place standing, according to Compete.

But Grover said Rakuten has a two-part plan for going up against Amazon.

First, it will target and partner with third-party resellers and merchants.

Amazon does this, too, but often ends up competing with the merchants because it has its own warehouses and products that it is selling, he said.

“Oftentimes Amazon will compete with the retailer. [Third-party merchants] teach Amazon what to buy and sell, which is ultimately not good for the merchant,” he said.

Rakuten, on the other hand, does not own any warehouses or any inventory itself and instead gives retailers — brick and mortar or e-commerce — the tools and traffic to support their own businesses.

In May 2010, Rakuten acquired Buy.com.

“I sought out Rakuten. … I thought their model was one that would give us a unique differentiator in the U.S. and we could learn and bring their model to our site and customers,” Grover said. “We are still in the final stages of transforming, and it’s taken a bit of time to get it transformed.”

But, he confidently added, “It will win out in the long-term.”

A similar approach is being taken by eBay, another e-commerce giant in the U.S.

The second part of Rakuten’s plan is to go after Amazon’s growing digital business, spanning music, e-books and other content.

In November, the Japanese company purchased Kobo, a runner-up in the e-reader race behind the Kindle and Barnes & Noble’s Nook. It paid $315 million in cash for the Canadian company.

Rakuten is banking on the Kobo in assisting with its move into providing downloadable media to consumers, starting with e-books.

At the time of the acquisition, Kobo CEO Michael Serbinis told All Things D that Rakuten will give Kobo the financial backing to grow internationally, as well as compete in the U.S.

“The U.S. is absolutely important. It’s fundamental. We have millions of U.S. users today, and we plan to grow that substantially, and internationally it represents a big opportunity as well,” he said.

Earlier this month, Buy.com started linking to Kobo from its site, so that consumers have the option of buying a physical copy of a book or a digital version. Other integration efforts are also under way.

It also wants to get into other digital content, like music. Back in 1999, Buy.com was one of the original sites to have a digital music store, but Grover said it was a pretty poor experience because of all the restrictions that record labels were mandating. A lot of that has now changed.

“We are definitely looking as a group at all digital content. … We are looking at different solutions, but today we have not continued on with our initial music store,” he said.

As with Kobo and Buy.com, acquisitions are always an option, he said.

“We’ll continue to look at everything that would make our business better. It hasn’t been shy over the past two years. We have a global vision to create an e-commerce marketplace offering all goods, and we continue to see that grow.”

And going up against Amazon, some serious growth is what Rakuten and Buy.com will need.

The share of U.S. adults who own tablet computers nearly doubled from 10 percent to 19 percent between mid-December and early January, while the same growth spike also applied to e-book readers, which also jumped from 10 percent to 19 percent over the same period. The driving force behind the surge in ownership, Pew said, was the relatively low cost of tablets like the $199 Kindle Fire and the $249 Barnes & Noble Nook tablet, as well as the price of some e-readers dropping below $100.

The new data comes after a period — from mid-2011 into the fall — in which there wasn’t a lot of change in the ownership of tablets and e-book readers, Pew said.

We already had an inkling that the Amazon Kindle Fire sold very well in its first few weeks on the market; a Barclays analyst has estimated that Amazon sold 5.5 million Kindle Fire tablets last quarter, and predicts that Amazon will sell 18.4 million Kindle Fires this year, giving Amazon half of the non-iPad tablet market.

Also not entirely surprising: Households with higher incomes bought more tablets, while women’s ownership of e-readers increased more than men’s. More than a third of those living in households earning more than $75,000 — 36 percent — now own a tablet computer, Pew said. Ownership of e-readers among women grew more than among men, from 11 percent to 21 percent; compared to a 5 percent increase for men, with just 16 percent of them owning e-readers.

Anecdotally, those cheaper tablets still are harder to spot “out in the wild” than the iPad, as my AllThingsD colleague, Peter Kafka, notes here, whereas iPads seem to be popping up everywhere, from the airport to the gym. Personally, I know a handful of female adults who got either Kindle Fire tablets or less expensive Kindle e-readers this holiday season.

The Pew report comes from the combined results of two surveys — one conducted Jan. 5-8 among 1,000 adults age 18 and older; and another, conducted Jan. 12-15 of 1,008 adults, with a margin of error of +/- 2.4 percentage points. The study is part of Pew’s research, supported by funds from the Bill and Melinda Gates Foundation, to look at how tablets and e-readers are impacting libraries.

(Photo courtesy of DJ Murdok/Flickr)

When Amazon.com Inc. introduced its first Kindle e-reader back in November 2007, the $9.99 digital best seller was a key selling point. Today, the price of a Kindle has plummeted to under $100 — from $399 back then. But e-book prices for some popular titles have soared.

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For the first time ever, so-called Cyber Monday registered as the biggest online shopping day of the year despite years of procrastinators lifting other days higher as they waited until a few days before Christmas to do their online shopping.

The theory had always been that consumers who flocked to stores on Black Friday would return to their desks on Monday to continue buying deals online.

Last year, the plan panned out and more than $1 billion-worth in items were added to virtual shopping carts across the U.S. to make it the heaviest online shopping day of the year — and the first time ever that a single day eclipsed the billion-dollar mark.

Now, with November already off to a strong start with a 15 percent increase in sales compared to the same period last year, another strong Monday could be in the works, according to comScore, which tracks online holiday spending. The research firm tracks shopping from fixed Internet connections, meaning it doesn’t count items purchased on phones or tablets.

Black Friday — the day after Thanksgiving — alone saw online sales of $816 million, making it the heaviest online spending day to date in 2011 and representing a 26 percent increase over the same day in 2010, comScore reported.

ComScore Chairman Gian Fulgoni said, “We now turn our attention to Cyber Monday, a day that Shop.org says will see eight in ten retailers running special online promotions. Last year, Cyber Monday was the heaviest day of online spending ever, with sales exceeding $1 billion, and we fully expect to see another record set this year.”

Cyber Monday may finally be living up to its name.

Amazon is a prime example of a retailer working hard to pry open wallets today.

Last year, the largest e-commerce company said Cyber Monday was Amazon’s peak day with more than 13.7 million items ordered worldwide, setting a record for 158 items sold per second.

Today, it will be important to achieve that pace again.

On Sunday, it bought full-color circulars in newspapers around the country promoting its lineup of discounts in its special Cyber Monday store.

On the front page, it touted its full lineup of Kindle e-readers, and a couple of pages were also dedicated to sales supposedly so steep you had to go online to see the prices for electronics, cellphones and videogames.

The Cyber Monday store, however, appeared a little unorganized with random “lightning deals,” which ranged from gift baskets to knife sets, board games, power tools and inexpensive jewelry — but nothing that seemed like the hit item of the season.

Other leading retailers, including Wal-Mart, Best Buy and Target, will also be expected to offer special deals.

Surely, the theory goes, if enough marketing dollars are spent, and the discounts are substantial enough, it might get consumers to turn out again to break another record.

In a blog post, comScore analyst Andrew Lipsman explained that last year’s shopping bonanza on Cyber Monday — which was first named that six years ago — was finally successful thanks to consumer awareness.

Over the past few years, it’s been steadily climbing.

In 2009, it was the second-biggest shopping day; in 2008, it ranked third. Before that, it wasn’t even close to the top. In 2006, it ranked 12th and in 2007, it ranked ninth.

“Today the majority of consumers know what it is and the attractive types of deals they can anticipate. With increased awareness comes increased participation on the part of both retailers and consumers,” he wrote.

So, now we have to wait to see if the deals — and the shoppers — both turn out, or if Cyber Monday turns out to be just another big sales day.

(Image credit: iStockphoto.com/mbortolino)

The program will be limited, at least at the beginning, in what is available to borrow. Amazon will initially offer slightly more than 5,000 titles in the library, including more than 100 current and former national bestsellers, such as Stephen R. Covey’s “The 7 Habits of Highly Effective People.” None of the six largest publishers in the U.S. is participating.

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That is bad news for companies such as Best Buy Co., Wal-Mart Stores Inc. and Staples Inc., all of which are counting on tablets and e-readers to lure shoppers in to their brick-and-mortar stores.

Retailers see the devices as their best weapon against falling television prices and a lack of exciting new gadgets this Christmas season. They plan to offer a broad range of tablets and e-readers for consumers to comparison shop in stores.

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The Eau Claire, Wis., library is lending out iPads. Some of the iPads are loaned for a week at a time, while others are offered for four hours at a time for use within the libary. Each tablet is loaded with 1,000 books and 10 audiobooks, as well as various apps and Web site links. In all, the library has 44 iPads to lend.

“The goal of the iPads program is to first introduce our customers to a new technology they haven’t used,” library director John Stoneberg told TV station WEAU. “Since we are the first public library, if not the first library in the United States to lend out iPads, it’s been a challenge but it’s been exciting.”

The library got a foundation grant to help pay for the tablets and said it chose the iPad from among the digital options because of its versatility.

“While there are many devices competing for the attention of the library customer, no single device can fulfill every need. The iPad was chosen for this project because of its place as a tablet computer marketplace leader and its flexibility in providing more access to library-related content than an e-reader-only device,” the library said in a document outlining the program.

Libraries have been going digital for some time, adding a variety of digital media to their physical and virtual shelves, as well as offering Internet access to patrons. On Wednesday, Amazon announced that its Kindle devices can now be used to read e-books checked out from libraries, joining similar programs available to Nook and Sony Reader owners.

Update: The folks at the Eau Claire Library, valuing preciseness, wanted us to know that they said they were one of the first, if not the first libraries to offer iPad checkouts. They said they have since heard from the Mentor Public Library in Ohio and Darien Library in Connecticut that both also offer iPad checkouts, though on a smaller scale.

[Due Date image (shown on iPad) courtesy Flickr user Doug Coldwell.

Sure, I signed a couple of iPad covers, Kindle covers. I’ve got no problem with that. But just because some people like their e-readers doesn’t mean we should sweep all the remaining paperbacks in a pile and strike a match. Maybe bookstores are no longer 30,000 square feet, but they are selling books.

Author Ann Patchett about her recent book tour in Sunday’s New York Times.

As reading moves ever faster from hardcovers and paperbacks to electronic gadgets, the retailer is attempting to reinvent itself as a seller of book downloads, reading devices and apps.

The shift was never clearer than last January, when a small group of experienced book buyers at the company was called in and dismissed. Barnes & Noble’s buyers were once book-selling royalty, minititans whose taste played a pivotal role in deciding which books danced up the charts.

For the bookseller there was little choice. It needed to invest in the future.

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It’s the latest evidence of one of the peculiarities of the e-reader business. Even as many other mobile devices—from tablet computers to smartphones—now sport color screens, electronic readers remain largely stuck in the past with black-and-white screens.

E-reader makers say they would like to have color screens to display images from books, magazines and newspapers. The problem is that color e-reader screens are “still not ready for prime-time production,” said Amazon.com Inc. Chief Executive Jeff Bezos at a shareholders’ meeting in May. Amazon makes the Kindle e-reader.

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The nation’s largest book-store chain offered no guidance for the current fiscal year as its board of directors continues to evaluate a takeover offer made last month by billionaire John Malone’s Liberty Media Holding Corp. Liberty’s closely watched offer values the chain at $17 a share, or about $1.02 billion, a valuation that some said is too low, given the possibilities for Barnes & Noble’s increasingly popular Nook e-book device in the rapidly growing e-reader market.

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The troubled Ann Arbor, Mich., bookseller could file for Chapter 11 bankruptcy-protection as soon as Monday or Tuesday, paving the way for hundreds of store closings and thousands of job losses, said people familiar with the matter.

Borders’s finances crumbled amid declining interest in bricks-and-mortar booksellers, a broad cultural trend for which it offered no answers. The bookseller suffered a series of management gaffes, piled up unsustainable debts and failed to cultivate a meaningful presence on the Internet or in increasingly popular digital e-readers.

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It’s about IBM’s years-long effort to build a computer smart enough to beat the world’s best “Jeopardy” players. And we’ll know how it turns out next month, when the quiz show airs a series of pretaped matches between Watson–IBM’s machine–Ken Jennings and Brad Rutter, “Jeopardy”’s most successful champions.

But Baker and publisher Houghton Mifflin aren’t waiting for the end of the show to start selling the tale.

You can buy an e-book version of “Final Jeopardy: Man vs. Machine and the Quest to Know Everything” via Amazon or Barnes & Noble today, and start reading immediately–you just won’t get the last chapter, about the climactic battle.

Then in mid-February, immediately after the face-off has aired, the booksellers will send readers the end of the book, either beamed directly into their e-readers or shipped to their PCs.

(And if you’re into delayed gratification, or paper and ink, you could also just wait till mid-February to buy the complete edition in hardcover.)

Novel, right? Sort of. For e-books, the serial approach is a new one, and both booksellers had to be coaxed into doing it.

But selling books on an installment basis is a really old idea, dating back at least to the 1800s, when greats like Balzac and Dickens used to serialize their stories. New Yorkers supposedly gathered at the docks to ask incoming passengers for updates on Dickens’s characters.

And perhaps we’re headed back that way, since digital media allows creators to put out work in as long, or short, a format as they’d like, at whatever pace they want.

Amazon is already playing around with this with its clever “Kindle Singles” format, which sells mini e-books (i.e., novellas or long magazine articles) at mini prices.

And in Baker’s case, the strategy theoretically allows him to piggyback on a wave of publicity that IBM and “Jeopardy” are generating in advance of the shows. If you watched the NFL playoffs this weekend, there’s a good chance you saw, or at least fast-forwarded past, this spot:

Now the trick is to figure out how to turn that kind of media into book sales, which isn’t a given.

But Baker’s a clever guy–prior to writing this book, he was a longtime BusinessWeek writer and editor, and spent the last several years of his tenure covering technology–so I give him decent odds. He was able to get me to write this piece, for starters….