Why the Waterstones/Amazon deal could hurt Waterstones

UK bookstore chain Waterstones announced that it is partnering with Amazon to sell the Kindle in its 294 stores starting this fall. The deal is bad news for Barnes & Noble, which was rumored to be working with Waterstones on a deal of its own. But it may not be so great for Waterstones, either. Here’s why: 1) It’s not clear how Waterstones makes money off the deal. 2) Waterstones turns direct customers over to Amazon. Again. 3) Waterstones appears to assume that e-books won’t grow that much.