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Originally Posted by SteveEisenberg
Amazon got their dominant position in US book retailing by creating an excellent web site with an enormous selection. That doesn't give them a moral right to keep their dominant position or engage in bullying of Hachette and of indie authors outside the Amazon Direct Publishing umbrella. Inspiring the big five to emulate Amazon is not a good plan. |
I don't understand how this person was "bullied" by Amazon. He thinks he's losing money, but without proof of that, I'm going to say he's just ignorant of the terms of his agreement with Amazon. This is from one of the comments on the article.
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Larry, how is your book being marketed on Amazon? Are you selling through an Amazon Advantage (consignment) account, or a Selling on Amazon Fulfillment account?
I'm assuming the former, since your product is listed as "sold by Amazon."
Amazon states the following on their Amazon Advantage Instructions and Rules:
"The standard purchase discount is 55% - you keep 45% of the List Price.The standard 55% purchase discount means that Amazon.com is entitled to a 55% discount on the List Price for each unit that sells. You, the vendor, receive 45% of the List Price. You set the List Price, also known as Suggested Retail Price, of your products, and all payments made to you are calculated based on the List Price. If Amazon.com decides to further reduce the sales price to the customer below the List Price, the customer discount comes out of Amazon.com's percentage."
This would suggest that the discount is coming out of Amazon's pocket, not yours, and that you receive full royalties on the original, undiscounted list price.
Can you please explain why you believe this is not the case?
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So...either this person is ignorant of the terms of his agreement with Amazon (possible) or he is deliberately and maliciously saying that Amazon is engaging in "bullying" tactics when it's just not true. I'm hoping it's the former.
Shari