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Amazon sells Kindles cheap – perhaps at a loss – because it knows getting a device into a customers hands means that customer will spend an extra $4,500 at Amazon over the next 10 years.
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Except with me. I read on a Kindle, and buy my books everywhere but Amazon.
I *HAVE* to shop at Amazon.com, being in the Netherlands. The one time I tried to shop in the UK (because the book cost $19.95 at Amazon.com, and £2.99 at Amazon.co.uk, while others didn't have the book), I got an e-mail stating that I had to prove that I actually lived in that country.
That sort of crap makes me shop at Kobo most of the time because I can buy from (almost) any country, the books are priced comparably to Amazon.com (for me, at least), even without discount codes. Shopping at Kobo US + discount codes = unbeatable price, and the fact that it's epub is icing on the cake (for me).
Diesel E-Books was very nice with regard to Forgotten Realms novels, for $4.15. (Amazon US: $6.59 - $9.95 depending on age, Kobo US: $6.59, NL: $8.55 after conversion.) I got quite a few of them there, but now they're all US-only for some reason. Therefore I've switched those over to Feedbooks.com (€4.25/$5.81) or Kobo US with discount codes.
ebooks.com is one of the most expensive stores I frequent, and often it's STILL cheaper than Amazon.com. (For me, at least.)
Long story short: I only shop at Amazon.com for ebooks if there's no other choice.