Originally Posted by geenp
When the Paperwhite came out it seemed that the gap between Amazon and the others was growing. I (Kobo user) wanted to try their ecosystem with a couple of books on their iOS app thinking that maybe I could switch when I was ready to replace my Kobo. What I found out was that every book I could find that had publisher controlled pricing was more expensive than on competing stores like the iBooks store and Kobo itself. I'm shopping from Australia and I don't know what the situation is like elsewhere but can anybody explain this? I was under the impression that publisher set pricing would keep all of them level.
Publisher set pricing keeps prices whatever the publisher wants. A particular book is only published by ONE publisher, so there is no competition from others selling that book, so they can charge whatever they want, and if someone wants that book, they don't have a choice, because it'll be the same across all stores.
Wholesale pricing is where it's at, sell the product to a reseller, and the reseller can charge whatever they please to complete with other resellers selling the same product. This forces the companies to sell books cheaper to the resellers so as they can all compete with each other.
That's a pretty basic explanation/reasoning behind it, but wholesale overall is much better.