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Originally Posted by spec2
OK, but it doesn't make a whole lot of sense on Amazon's part. Most likely they are selling the Kindle near cost. If the books are loss leaders too then they have to hope people keep browsing the site and buying other items -- EXCEPT Kindle downloads are wireless and don't go through the normal check out. In fact you don't even have to go online you can buy direct from the Kindle.
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Who says the Kindle is a loss leader? For the price it's certainly in line with everything else out there.
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Of course I doubt that is what is happening. Personally I don't believe the publishers. The pricing gaps are just too wide between sellers.
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Anything's possible and we'll probably never really know. Amazon gets around 65% of the cover price while the publisher only gets 35%. If Amazon is willing to only make 20-30% or less on a book that gives them lots of room. Also very few books really fall into this category. The vast majority don't have a whole lot of difference in price from other sellers (especially once they hit mass market pricing).