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Old 06-07-2012, 04:42 AM   #20
HansTWN
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Quote:
Originally Posted by Fbone View Post
It will be difficult for new companies to enter knowing that they will have to sell almost every single bestseller at a loss to match Amazon. Also, Amazon will price match aggressively to gain complete price advantage.
Well, if Amazon keeps the prices for bestsellers below cost for eternity, then yes. In that case consumers benefit and I don't see what the scary thing about the "monopoly" would be. But the scenario some are painting here is that they will then raise the prices to clean up --- which again would make it very easy for someone else to come in and compete with them. So, which one is it?

Besides, I don't think Amazon will sell below cost now --- they don't enjoy the generous margins on the Kindle hardware anymore. And in the past a major part of the strategy was to get people to switch to ebooks. A major part of the market has switched already by now. So most probably they will sell at cost or slightly above it.

Last edited by HansTWN; 06-07-2012 at 04:46 AM.
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