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Another piece of the cost puzzle that is not factored in -- and which benefits ebooks -- is that an ebook is never out of stock or out of print or in transit to the bookstore and not available for sale. It means that every impulse sale of an ebook can be completed provided the consumer has cash/credit in hand.
Bookstores have to have physical stock on hand, on the shelf ... or it's no sale. Ebooks are always available which means more sales, higher profits, and more royalties.
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