Amazon, the world's biggest Internet book seller, is hoping that it can attract new Irish customers as part of its price war in Britain with arch rival BOL.com.

But the impact on the Irish market of the move by Amazon to discount the top 40 bestsellers by 50 per cent is likely to be limited because currency and delivery charges offset the bulk of the price cuts.

With delivery charges to the Republic levied at the same rate as to the rest of Europe for books from Amazon in Britain - £2.95 sterling plus £1 sterling per book - the 50 per cent reduction offered by the company is wiped out on an average book priced at £7 to £8 on the high street.

But there may be scope for savings on the part of consumers who buy high-priced books such as hardbacks, or several books at a time. Irish customers should be aware that all prices are quoted in sterling and therefore 20 per cent more expensive for buyers here as a result of the strength of the British currency. Customers from the Republic also will have to pay bank charges in respect of the currency transactions.

However, Mr Simon Murdoch, managing director of Amazon.co.uk, said yesterday that the Republic was a key market for the company. "These discounts are intended to attract book buyers who would not normally use the Internet for their purchases."

Irish online booksellers do not seem to be concerned by the prospect of a price war. Mr Joe Serry, assistant manager of Fred Hannas in Nassau Street in Dublin said "Most people like to go into a bookshop and actually see the book and leaf through it before they buy it.

"The discounts on books offered by these companies are wiped out by the charges for postage and packaging and often the delivery time can be up to three weeks whereas we will deliver orders from our website within 24-48 hours."

Similarly, Mr Conor Kenny of Kenny's Booksellers in Galway said "the discounts will not make any difference to us and will not force us to reduce our prices.

"We operate in a niche market, as the main exporter of books by Irish authors, publishers and printers to mainly the United States whereas Amazon's and others' discounts are mainly concerned with international bestsellers."

Amazon's price cuts cover hardbacks and paperbacks with the new Jilly Cooper novel Score for example retailing at £8.33 sterling at Amazon, but it will cost the Irish buyer at least £14.73 compared to £16.99 on the shelf in Fred Hannas.

Further reductions in online prices may come as a result of the price war brewing in Britain. But Mr Murdoch said "Amazon will not be making any rash decisions" on more reductions.