There are many new challenges for small businesses in the 21st century, especially the extensive use of Internet. It leads that the competition of small businesses, such as the book retail market, is fierce and getting fiercer. How the internet affect on the book retail market? In this paper, I will focuses on three different parts that Internet affects on the book retail market for both buyers and sellers. This paper is organized as follows: at first, I will introduce three main different issues about the effect of the Internet. At the same time I will cite ample data to illustrate the effect. Then I will illustrate the future of book retail market. Finally, I will summarize my points.