The e-book store's new owner Pearson Group Australia said Borders online would be rebranded as Bookworld.
The move means the Borders site and applications will be rebranded.
Bookworld chief executive James Webber said the Borders brand had lost its former sheen.
"We just believe the Borders brand has had its day. There are no stores left and globally it's been in demise so we believe there's an opportunity to revitalise (the franchise) and move it forward," Mr Webber said.
He said the company planned to start contacting customers about the changes to the online store and applications later this week.
Bookworld is a division of the Pearson Group, which also owns Penguin Books Australia and the Angus & Robertson online franchise.
Pearson acquired Borders and Angus & Robertson's online assets in February last year after their parent company REDGroup placed itself in voluntary administration owing creditors about $120 million.
The Angus & Robertson online brand would be retained, a Bookworld spokeswoman said.
Mr Webber said the rebranding exercise was behind a recent decision not to remove bugs from the Borders Google Android application, which stopped some titles from being displayed properly on the devices.
"With the rebranding to Bookworld the app will be fully upgraded to the latest version for Android and with that everyone's libraries become visible," he said.
Borders customers would not be required to make any changes to their login details or accounts during the transition, Mr Webber added.
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