Comment No better moustrap at all ... (Score 1) 306
What's happening Instead is that Amazon is using its marketing clout and its "brand recognition" to carve out a monopoly for itself.
Face it: anyone who can set up a website can sell e-books. You don't need a warehouse, you don't need fulfillment services. You just need a web-server and an e-shop.
You also need customers however, and that's where Amazon's added value is. It has a big catalog of paper books and lots of customers who'll turn to Amazon *first* if they're looking for a book. Any book. And yes, that makes it easier to sell e-books too.
In all other respects Amazon's added value is practically zero here, and it takes a lot of chutzpah to propose to charge 30% of the book price for that.
What Amazon noticed however is that *their* turnover is highly price-elastic and that they're well positioned to make money at high turnover rates. Needless to say that their turnover is an *aggregate* of sales of lots and lots of different titles. That doesn't mean that each separate title has the same price elasticity, or that its profit is maximised by adopting their uniform price.
Amazon simply wishes to grow its business by throttling direct sales and specialised retail channels and would like more or less uniform prices (like any other supermarket).
Nothing wrong with that of course, but it's 100% self-serving.