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Depends on your definition of 'short story'. Are we talking 1000 words, 10000, 20000?
My best-selling book on Amazon is a 'novelette' - 10 000 words.
From what I've seen, more 'occasional reader' types are starting to read on their mobile phones and other devices, and so the market for shorter works is increasing. But sites like these tend to be weighted with reading-addicted types, and I suspect that the more a person reads, the more likely they are to buy longer books.
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