Quote:
Originally Posted by eschwartz
With Agency pricing, it is the smaller stores that couldn't undercut the competition.
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The smaller stores never really undercut Amazon. They offered other types of gimmicks but I think those only worked as long as they sold books that the major bookstores didn't. Once indie ebooks became distributed to every bookstore, many buyers returned to their preferred bookstore; there was no need to buy from the small online bookstore.
Before agency pricing, Amazon was able to undercut everyone, including the small online bookstores. Agency pricing gave the small store some price protection and let them compete in other ways.