Amazon cozies up to book stores to sell Kindle …

SAN FRANCISCO -- Amazon.com is turning to some of its natural rivals as the world's largest Internet retailer tries to sell more Kindle e-readers and tablet computers.

The company unveiled a new program called Amazon Source on Wednesday that offers discounts and other incentives to persuade physical book stores and other retailers to sell Kindles.

One option, aimed at booksellers, offers a 6% discount off Kindle list prices and 35% off Kindle accessories. Book stores also get a 10% cut of every e-book purchased by customers from the Kindle devices they sell. This lasts for two years from when consumers buy the devices.

A second option, aimed at general retailers, skips the 10% revenue share but increases the discount on the device list prices to 9%.

Many book sellers consider Amazon the arch enemy because the company has come to dominate the industry through an aggressive low-price strategy that has pushed some businesses, such as Borders, into bankruptcy.

However, Russ Grandinetti, vice president of Amazon Kindle, said the Amazon Source program will help book stores.

"If you run a bookseller, or any retail store today, many people walking through doors are interested in buying print books and digital versions," he added. "This makes stores more relevant to customers."

However, Amazon needs physical store partners too because selling electronics gadgets often requires a place for consumers to try them out and have staff explain how they work. Apple's retail stores are a big reason why the company sells so many devices and why customers keep coming back to upgrade to its latest gadgets.

As Amazon competes with Apple more in the tablet market -- and possibly the smart phone sector soon -- the online retailer may be looking for more ways to distribute its devices through physical stores.

Wal-Mart and Target, the two largest retailers in the U.S., used to sell Kindle devices, but the companies stopped last year.

Amazon's new Amazon Source program of! fers another incentive for retailers to get involved. If stores decide they no longer want to sell Kindles, Amazon said it will buy back the inventory for up to six months after their first order, with no questions asked.