Quote:
Originally Posted by JSWolf
Amazon's loss leader pricing had nothing to do with these shops going out of business. When they went out of business Amazon wasn't able to have these loss leader eBooks from the BPHs because of agency. So the prices were the same. If Amazon's loss leaders were the reason they closed, then they would have closed before agency. It wasn't Amazon that closed these shops. It was agency. Agency took away what made these shops different, what drove customers to shop there.
|
Excellent point - Amazon had no price advantage after agency. Agency took away the advantage the smaller shops had with their business models that were no longer allowed after agency.
When prices are all the same the only thing to compete on is customer service, and Amazon is better than all the rest there. Agency gave Amazon a big advantage.