Parmandur
Book-Friend, he/him
Thanks. So, who takes the hit from the Amazon discount? Is that the retailer or the distributor getting cut out?
That's the entire secret to Amazon's business model: they are both a distributor and a retailer, so they can offer end customers similar prices thst distributors traditionally offer retailers. So Amazon is taking the distributors cut and passing the retailer cut on to the customer directly.
So, Diamond (say) buys a book from WotC for $12.50, then goes and sells ot to @FitzTheRuke at roughly Amazon prices.
Amazon buys a book from WotC for $12.50, then turns around and sells it to a customer for the same price Diamond would charge the retailer.
So WotC gets the same cut either way, and Amazon gets a similar cut to a distributor. But retailers cannot compete on price.