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Old 12-20-2010, 05:46 PM   #12
Kali Yuga
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Quote:
Originally Posted by KenJackson View Post
It's been the exploitation of the Long Tail that has made Amazon.com so prosperous.
Not really, that's just one factor among many.

Others include hyper-efficiency with inventory management; eschewing physical retail space; aggressive pricing; a focus on customer service and a big heaping of good luck.


Quote:
Originally Posted by KenJackson
So what's the implication of ebook sales to the shelf space issue of the long tail?
Not much that we don't already know about.

Translating all of that back catalog into digital is going to take years. Multiple retailers and vendors are going to get into the game. But otherwise, by now the shift to digital won't change these buying habits much.


Quote:
Originally Posted by KenJackson
If I start up a new web site--Ken's Book Store--selling ebooks online, it would have to invest some money to get the website up and get contracts with publishers. But would I have to get a contract per book? Or a blanket contract per publisher? I don't know, but I would guess it's the latter.
You don't know how retailing ebooks is done, and you think you can give Amazon a run for its money?



Actually the most likely thing at this point is you'd partner with Google. Otherwise you will need to develop relationships with hundreds, if not thousands, of publishers. I'm not even sure there is any sort of middle-man/distributor/clearinghouse that is an equivalent to say Ingram or B&T for digital.

If there is, they'll take a slice, which makes your costs higher than Amazon's. I'm sure that'll work out great in your favor.


Quote:
Originally Posted by KenJackson
So with just a few contracts my warehouse is full. Suddenly I've got more books for sale than the average mega-bookstore.
Yeah, no.

It's gonna take a little more work than just setting up a web server in Vanuatu.

Established companies like B&N, Sony and Borders are throwing millions at their efforts and not necessarily gaining much traction. Your bookstore won't stand much of a chance unless you manage to exploit some totally unexplored aspect of ebooks -- that a major player can't adopt immediately.
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