Comments on: Amazon e-book prices creeping up

By: Ryan Chapman

Ryan Chapman — Mon, 16 Mar 2009 14:11:35 +0000

I agree with Rich and Rob here – Amazon’s been treating all of publishing as a loss-leader with $9.99 ebooks. Keep in mind Amazon doesn’t treat themselves as a bookseller, but an online retailer. This is no different from WalMart’s storied tactics of arriving in a new town, price-gouging the competition, and then raising prices once they’ve established a regional monopoly.

I’m sensitive to the ebook price point as a consumer and a publishing employee: the only difference b/n print and electronic books in the production chain is the last step. Since this step is a fraction of the MSRP, why should changing it so greatly affect the price?

By: Rob Preece, Publisher

Rob Preece, Publisher — Fri, 13 Mar 2009 23:29:12 +0000

Everyone loves a bargain but I don’t know why Amazon should be expected to offer its books at $9.99 when the publisher lists them for, say $17.99 and demands 50% of that ($8.00), leaving Amazon only $1.

Amazon offers a nice discount on my books, while still pricing them high enough to make a profit for them and pay me the standard 50% royalty. Should publishers set list prices lower? This is a discussion that has been going on for a long time (and clearly based on my prices, I believe we should). Still, it’s not Amazon’s job to set low prices–just to offer attractive discounts from the prices set by publishers.

Rob Preece
Publisher, http://www.BooksForABuck.com

By: HeavyG

HeavyG — Fri, 13 Mar 2009 22:23:29 +0000

I think Amazon is probably testing the waters to see where consumer tolerance might sit in regards to ebook pricing.

Since it appears the publishers seem to still believe in the fantasy of selling ebooks at about the same price as a paper edition Bezos is possibly trying to establish some data that he can use to smack the publishers in the head with the clue stick.

By: Rich Adin

Rich Adin — Fri, 13 Mar 2009 19:28:46 +0000

I don’t think it is a matter of pushback from publishers. I think Amazon recognizes that it cannot sustain its current pricing model and get an appropriate ROI for shareholders. Publishers offer their books at a uniform price to all retailers (with quantity discounts accessible to all as well), and it is the retailer who sets the retail store price. Amazon has been selling new e-releases at a loss, a way to hook people into buying a Kindle and then locking them into the Amazon store. Now Amazon is slowly raising prices, which should have been expected by every Kindle buyer.

There are only 2 options: (1) Amazon raises prices so it can make money for its shareholders or (2) it becomes so dominant in the ebook market that it can dictate wholesale pricing to publishers. It is trying for option 2 but hasn’t yet reached that tipping point so it has to settle for option 1.