Quote:
Originally Posted by darryl
Amazon didn't force agency on the Conspirators. But I doubt Amazon wants to go back to it now. The days of Amazon subsidising the Big 5's inflated pricing policies are over. Even if there is a return to a wholesale model, it is not now in Amazon's interest to discount their books from its own pocket.
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Amazon is interested in one thing: maximising sales. Amazon knows that the cheaper an ebook (or pbook) is, the more it will sell proportionately. Amazon is also about selling you other stuff, so they can use the books as a less-leader (yes, I meant to use less, not loss), they are happy to make less revenue/profit from one item to try to sell you other stuff.
We do now that Amazon looks at the big picture, and would rather make more money selling at a reduced margin, than in trying to maximise the prices.
All that being said, given the limitations of agency, Amazon is probably liking it. If every bookseller has the same prices, then people will still flock to Amazon because they do, so Amazon gets the sale and the increased margin.