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Originally Posted by DMcCunney
The publisher will set the retail price, and Amazon will get a lower discount. They will be required to charge more for the ebook, and have less margin to cut into to drop prices. I believe that 30% you quote is the retailer's markup. Instead of paying the publisher 50% of the price of the book, they are paying the publisher 70%.
That does not constitute a savings.
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It does for the publisher, they have reduced the cost to them of having the book retailed from 50% to 30%. They get to keep more of the sale price.
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The cut taken by the wholesaler and retailer is another matter.
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And where large savings can be made. If Kindles could purchase books online from other stores I think you would have already seen large publishers set up their own eBook stores.