Quote:
Originally Posted by charlesatan
Operational costs. Amazon can afford not to make a profit selling eBooks (i.e. forgoing its entire 30% share (assuming they actually do this... they've done so in the past but there's no guarantee they'll do so now). Barnes & Noble can't. (They're not losing money but it's hard to sustain a business when you're not gaining any revenue.)
Agree with the rest of your assessment though.
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You lose money on some ebooks but you make more money on others. It's a strategy retailers have been doing for decades. In addition, Barnes and Noble can discount less than Amazon.
According to the DOJ, Amazon has been "consistently profitable selling ebooks."