Quote:
Originally Posted by Fbone
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.
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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.