Bezos stated in the
interview with Newsweek that he is losing money on the New York Times Bestsellers and new releases by selling them at $9.99 US but he can do this indefinitely because "We have a lot of experience in low-margin and high-volume sale—you just have to make sure the mix [between discounted and higher-priced items] works."
I buy plenty of stuff off of Amazon all the time because of the convenience factor. I'd rather spend a few dollars more than schlep from store to store looking for a particular item. I buy almost all my pbooks from them because I can't stand the idea of paying retail for a book at a chain bookstore. *If* there were any small local bookstores near me, I would patronize one of them.