I've done some research to answer this question. The
eBookBase information for publishers makes it pretty clear that MobiPocket is acting as a distributor with regards to the publishers' catalogs. The information for becoming a retailer and the
list of partners details the steps involved in selling the entire catalog as part of the MobiPocket retailer network. MobiPocket gets a cut from every sale, regardless of who the retailer is (from the
retailer agreement):
Quote:
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The Retailer will pay Mobipocket the wholesale price for each electronic book purchased on the Retailer's Web Site and distributed to the end user through the eBookBase System. The wholesale price is set by Mobipocket for each title and is a percentage of the suggested retail price.
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Since MobiPocket is also selling directly through its own Web site, it is essentially a member of its own retailer network. To avoid undercutting its customers, the only thing MobiPocket can do is keep its own prices high. It's unlikely that the MobiPocket store will ever be the cheapest price on any of its books.