Quote:
Originally Posted by dickloraine
I can't imagine, that amazon makes no money with ebooks. I don't have the numbers, but the ebook business is not that small. It would be very strange, to make no money in a billion dollar business. Maybe amazon has get its initial customers through its book business, but I don't think loss leading books attract people to buy other products in such a quantity, that you forsake a whole market. When people are amazon customers, they tend to buy by amazon anyway. Of course there is some cross-marketing going on, but if I look for tvs on amazon, I get recommendations for tvs and maybe movies, blue ray players etc. but not the book of the day.
It is either to much money in the market to realy push all the competition out of it, or it is so small, that it isn't worth all this trouble, at least I am inclined to think so.
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I doubt anyone other than Amazon knows if they actually make money at ebooks, that's what the quashed Apple discovery attempts were about. For what it's worth, I tend to agree that it's unlikely that they lose money since Amazon wasn't pricing all ebooks at $9.99. Probably just the standard loss leader to get people to use Amazon.
On the other hand, it was widely reported that Amazon is losing too much money
[
http://247wallst.com/consumer-electr...ney-for-years/
and
http://www.bloomberg.com/news/2014-0...-services.html ]
which is part of the reason that Amazon is trying to squeeze it's suppliers even more. Using lose leaders as a business strategy can be expensive.