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It took me a little while to figure out the differences in formatting that Amazon wanted compared to Smashwords, but I think it was worth it. Amazon matched my Smashwords prices within a week (I had one free book at Smashwords, and one at $2, so I set the Amazon prices at $0.99 and $2.99 because of Amazon's requirements and royalties structure).
Smashwords has been great at distributing my books to tons of different stores (I picked up a lot of sales at B&N and Kobo), but Amazon is so big that I think it's worth it to go through them directly. Their book submission system is pretty straightforward once you've gone through it once or twice.
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