Quote:
Originally Posted by stonetools
I'm afraid your analysis is faulty. Amazon's strategy is to sell ebooks AS A WHOLE at loss, in order to draw customers so that they can sell NON-BOOK items at a profit. Now, as the suit progresses, it may come out that Amazon makes money on ebooks over all. But most business analysts think Amazon is losing money on ebooks over all. Since Amazon doesn't realease sales figures, we don't know for sure, but that's the way to bet.
|
Amazon does not sell ebooks as a whole at a loss.
John Lock made over a million dollars selling $.99 ebooks in five months... which means Amazon made over $2m on him alone in that time. That 35/70 % cut on indie ebooks means Amazon RAKES in money on small sales. They can afford to lose money on $12.99 bestsellers, because for every one of those they sell, they sell two dozen one-dollar ebooks... that makes them over sixteen dollars.
Maybe it's not 24 indies per bestseller... but they are selling a *lot* of small cheap ebooks. And at the percentage they make from them, they don't need to sell as many BPH high-priced ebooks.