Quote:
Originally Posted by Elfwreck
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.
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With the settlement as currently revealed to us it is by publisher that a profit has to be made. Self-published ebooks will not count toward the BPH's numbers. I suspect Amazon will need to do some long-range projections and more frequent price changes as we get toward the end of the court-fiscal year to comply. Or they don't have to and ignore the settlement demands and pay the fine.
Also, you need to subtract transaction costs from Amazon's small sales. Debit cards by law is 21-24 cents. Credit cards even higher.