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But that is 15-20%, almost pure profit. And it's just from the ebooks. Remember, Amazon deals in MORE than just books. They have great margins, I am certain, of actual tangible goods.
What kind of costs are Amazon accruing for a self-published books.
Marketing- It's put into a database, tagged, possible images. Are these all supplied by the author who uploads them? I upload a book, do I supply the genre info, tag words, author, book name, short desc, etc..?
Storage- It's a 500kb file. A 1TB HD holds 1,073,741,824 kilobytes.. that is 2,147,483 books at 500kb each. Storage is not a problem.
Distribution- Sure, they have to have some way to manage the distribution, keep records, tally up rankings, etc.. But this system was already in place with Amazon's website.
Everything here was already in place long before the Kindle, except for the uploading/tagging pages. But this should not cost 65% of gross cover price.
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