Quote:
Originally Posted by rhadin
Amazon really didn't start to beat up on B&N until Amazon began subsidizing its book losses with its profits from nonbook items. That was and is a key difference between Amazon and other ebooksellers -- the ability to absorb losses in books for years because other divisions are profitable and able to support the book losses.
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Amazon is dominant not because of ONE advantage but because of many advantages, although that is the biggest stick in its arsenal. . In terms of importance, I would rank as follows:
1. Low prices/Ability to out discount everyone
2. Catalog size
3.Recommendation engine
4. Reviews
5. One-click buying
6. Great customer service
7. Device lock-in/DRM
8. Format lock-in
Techies tend to emphasize 7 and 8, but IMO you could toss out both of those and Amazon would still dominate. For example, I am an Amazon customer via the Kindle app. I don't own a Kindle and can shop at multiple bookstores. Moreover, I am aware of the threat of Amazon becoming a monopoly and try to spread my purchases among multiple stores. Despite that, more than half or my purchases are from Amazon.