Sometimes less is better, even online. Last summer, Wal-Mart's online bookstore increased its book selection from 350 titles to more than 300,000 titles in 4000 categories. Earlier this year, however, the retailer cut back its online offerings to 50,000 titles.

"We found out that quantity was not as important as quality," said Scott Benedict, Wal-Mart's category manager. "Being in stock and getting it out the door quickly are more important." Part of the quality issue, Benedict explained, was that many of the titles did not have good-quality images, and many did not have synopses that could be used effectively on the site.

Sales also played a part in the company's decision to reduce its book inventory. According to Benedict, after his assistant category manager studied the marketplace, they determined that Wal-Mart was getting the majority of its sales from 50,000 titles.

Wal-Mart's new online focus is on service and price. Bestsellers are discounted 45%, hardcovers 30%, paperbacks 25%. The everyday shipping price, regardless of quantity ordered, is $3, and free shipping was provided throughout the month of October. "Response to the [October] promotion has been great," Benedict said, with sales for the month up 500% from October 1997.