Quote:
Originally Posted by Over
I'm not following up. How can Amazon being loosing money, if they sell the ebooks at the same price as the paperbacks? Shouldn't they be having a wider margin profit? Or are hardcovers the big money makers?
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Publishers get 35% to 50% of the list price. The list price of ebook versions of new hardcovers are typically the same as the hardcover. So when Amazon sells these for $9.99 they nominally loose money if the list price is above $20 (50%) or $28.50 (35%).
Where they really loose money, though, is when publishers charge hardback prices for ebooks even though there is a paperback version. In that case Amazon meets the paperback price, at great cost to them while subsidizing the gouging publisher.