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Old 06-03-2008, 09:58 AM   #16
wallcraft
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Join Date: Mar 2006
Location: Mississippi, USA
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Quote:
Originally Posted by Over View Post
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?
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.
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