I suppose it's possible that Amazon's average ebook cost is $1.50, but only because of the very large number of $1.99 retail ebooks, which only cost Amazon $0.70
Amazon are paying small publishers 35% of the list price, and large publishers are probably getting 40% to 50% of the list price.
This is still an amazingly large profit margin for something they don't need to stock or ship.
Quote:
Originally Posted by poohbear_nc
"Even though e-books are heavily discounted compared to their hardback equivalents, they are wildly profitable – costing Amazon just $1.50 per book, Credit Suisse Group AG (NYSE ADR: CS) analysts estimate. And that margin is expected to improve as Amazon’s costs come down by 2012, when its profit on e-book sales alone will soar to $31 million."
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