Quote:
Originally Posted by HarryT
For an organisation like Amazon to do so I'm absolutely certain is not commercially viable. The cost of all their buildings, servers, infrastructure, and above all, the costs of the staff who run it all, comes from revenue from sales. I haven't the faintest idea what those costs are, but I am sure that it comes to more than 1 cent per sale.
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Those are all fixed costs. It would be the variable costs that would affect whether something was profitable to sell or not. Variable costs are costs that are only associated with a sale — for a real book it would be packaging and postage. For an ebook it would be cost of transfer. Fixed costs need to be covered too, but you do that differently, usually a percentage based on your expected annual sales.