Originally Posted by tubemonkey
Thanks. If Amazon fails at getting the wholesale price reduced and ends up with Agency, they can still sell the books lower than what the publishers want and still make a profit.
- $12.99 retail ($9.09 wholesale) + free $2 ~ $3 Kindle credit = $9.99 ~ $10.99
- $14.99 retail ($10.49 wholesale) + free $3 ~ $4 Kindle credit = $10.99 ~ $11.99
The whole basis of agency is the fiction that the actual seller is the Publisher, not the retailer. The retailer acts merely as the Publisher's agent, with no control over the sale price whatsoever.