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Originally Posted by pwalker8
I suspect that the cost of the ebook section of Amazon's overall online store is pretty minimal.
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If the costs really were minimal then ebooks would be almost pure profit. Yet every player in the industry struggles. Yes, even Amazon, which posted in the black for the first time in 2015. Peanut Press went bankrupt. Amazon acquired (and dismantled) MobiPocket. Sony sold off their ebook business to Kobo.
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For that matter, the cost of maintaining a 1M+ hit per day website is a lot less than you might think. It doesn't actually require a huge data center.
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You are technically correct: running a 1M+ hit per day web site isn't expensive. But I'm not talking about running a 1M+ hit per day web site. I'm talking about running a profitable business.