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Originally Posted by DuckieTigger
Selling ebooks to a retailer is different than setting up an ebook shop. They created ebooks, but were not interested in directly selling them to end-customers. I should have probably phrased it: they had a chance to compete with Amazon by entering the ebook-retail market.
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You do realize that all of the big publishers sold ebooks directly before the Kindle even existed right? They had shops back when Amazon and B&N sold ebooks the first time around (before they stopped selling them originally). A few pubs stopped selling ebooks later after the Kindle was so popular, but many never stopped and still do sell them. They just aren't all that good at it.

S&S used to have a pretty nice setup which they eventually ruined by redesigning it and raising prices.
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I think it is interesting that the prices were lower at first. What happened to that?
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What's "at first"? Most ebooks had a a list price that closely matched their paper book equivalent originally (back in the days of Fictionwise, etc.). The only thing that often made them as cheap or cheaper than a paper book was the street price after the retailer had discounted the book.