Quote:
Originally Posted by fjtorres
Amazon ain't lying on this one.
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I have no question about Amazon's data on this:
1) There isn't a benefit for them to lie.
2) They're in the best position to have this data across all ebooks and publishers.
3) Their entire business (beyond ebooks) is built on knowing this type of data.
The publishers should have this data as well but only for their own books. They have enough popular authors that write generic books and have a relatively stable fan base that they can compare how many units sold at $9.99 versus when the tried jacking up the prices.
What Amazon isn't saying is that this is looking at ebooks in isolation. The publishers are arguing that they're trying to protect their higher margins on hard cover editions. The heavy discounting (actual competition) on hard covers means that Amazon is probably making a lot less then 30%. They also have to inventory, manage and ship it so I suspect they make more money selling the ebook at $9.99. Like any smart business man will say though, your profit margin is my opportunity. Amazon is in the business of giving the customer what the customer wants. The publishers are in the business of giving the customer what the publishers want. We'll see who wins.
