Waterstone's is an .epub eBook store.
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Pros
Pro eBooks offered are Adobe Digital Editions compliant
Waterstone's eBook store sells .epubs that are encoded with Adobe Difgital Editions DRM. This allows the .epubs purchased to be used with the Adobe Digital Editions application that can then transfer purchased .epubs to ADE compliant eReaders.
Pro Generally cheaper than WHSmith
For those that are stuck using UK eBook stores it woul appear as though Waterstone's has better prices than WHSmith.
Cons
Con UK only store
Waterstone's is a UK only store, so those outside the region are out of luck purchasing from them.
Con Some eBooks more expensive than paper books
Sadly Waterstone's does not have as much pull with publishers as Amazon so there are more high priced eBooks on their store.
Con Sells Kindle devices but its eBook store is .epub only (which are incompatible)
Something of an odd predicament in that Waterstone's has a contract with Amazon to sell Kindle devices even though they only sell .epub eBooks on their Waterstone's branded eBook store.