Quote:
Originally Posted by SteveEisenberg
Amazon was using loss leader pricing on many bestsellers. This can work for them because books are only 10 percent of their business, and they can use bargain books to drive often affluent readers into buying more profitable items.
Amazon's competition had far less ability to make up for losses on bestsellers. Agency would have helped them.
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Every big seller of books uses loss leader pricing (Amazon, Walmart, Big W (in Australia), probably B&N).
And I wasn't talking about loss leading. I was talking about the publishers supporting the big B&M book sellers while helping to kill off the independents. Then helping Amazon while helping to kill off the big B&M sellers.
Now that the big B&M sellers are dead or on the ropes, the publishers are looking for the next iteration of the strategy that has worked so well for them in the past, and are finding...nothing...
So, they have to live with Amazon.
And that's the karma.