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Quite a few authors are using word processors to create the document and then using Vellum or similar tool to convert to epub. Some are using Sigil or calibre to convert their word processor output to an epub file. A rather small group others are using Adobe's InDesign. Yet others are using third parties to produce the ebook reference file.
Once you learn to use styles properly in your word processor, it's a fairly easy process to produce an epub reference file.
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