Terrible idea. I just removed five books from my wishlist. It looks like they are doing the same thing at ereader.com and ereader is now no longer using the Amazon-matching prices they were before either. I did a test search on some Stephen King books since I know they are unusually pricey, and even at ereader, they are in the $20 range.
This is really bad. I will definitely be buying less books because of this.
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