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<blockquote data-quote="Dannyalcatraz" data-source="post: 5883209" data-attributes="member: 19675"><p>Uh, no.</p><p></p><p>Amazon's agreements with publishers set a purchase price, which Amazon is then free to completely ignore. They then sell at a deep discount- a <em>below-cost discount</em>- which can't be matched by other retailers (due to THEIR agreements with the publishers as well as overhead costs), allowing Amazon to grab market share. They can do this by cross-subsidies with other products.</p><p></p><p>This has been documented several times, such as when Amazon did a promotion giving a $5 discount for purchases made after taking pictures of prices in other stores. This behavior was also complained about by publishers when they did the Kindle launch. It is also what is alleged by the company in the link to this case- the prices Amazon was selling their books for were so low it was costing them sales in other outlets.</p><p></p><p>Or consider this:</p><p></p><p></p><p></p><p>(from the same article)</p><p></p><p>Or from The New Yorker:</p><p></p><p></p><p></p><p>Further down, that article discusses Amazon's attempts to go directly to authors- cutting out publishers entirely- on the condition that the authors accept cut rate prices as low as $2.99. And this model not only eliminates the physical book, but also the publisher's advances, professional editing and other services that help make it possible for authors to actually make a living by simply being writers.</p><p></p><p>IOW, it's not just the retailers but the publishers complaining about and being harmed by Amazon's business practices.</p><p></p><p>This potentially leads to monopoly AND monopsony- both bad for the ultimate consumer.</p></blockquote><p></p>
[QUOTE="Dannyalcatraz, post: 5883209, member: 19675"] Uh, no. Amazon's agreements with publishers set a purchase price, which Amazon is then free to completely ignore. They then sell at a deep discount- a [I]below-cost discount[/I]- which can't be matched by other retailers (due to THEIR agreements with the publishers as well as overhead costs), allowing Amazon to grab market share. They can do this by cross-subsidies with other products. This has been documented several times, such as when Amazon did a promotion giving a $5 discount for purchases made after taking pictures of prices in other stores. This behavior was also complained about by publishers when they did the Kindle launch. It is also what is alleged by the company in the link to this case- the prices Amazon was selling their books for were so low it was costing them sales in other outlets. Or consider this: (from the same article) Or from The New Yorker: Further down, that article discusses Amazon's attempts to go directly to authors- cutting out publishers entirely- on the condition that the authors accept cut rate prices as low as $2.99. And this model not only eliminates the physical book, but also the publisher's advances, professional editing and other services that help make it possible for authors to actually make a living by simply being writers. IOW, it's not just the retailers but the publishers complaining about and being harmed by Amazon's business practices. This potentially leads to monopoly AND monopsony- both bad for the ultimate consumer. [/QUOTE]
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