Amazon is doing the world a favor by crushing book publishers
- Thread starter William Haskins
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And worthy of consideration several times over.
Most of my sales are through Amazon. Many of my e-book purchases, too. I know authors who are doing well at self-publishing there. But I don't for a moment ascribe completely benevolent intentions to Amazon. They're out to make money and bury the competition.
Books are probably still a loss-leader compared to other consumer goods sales. Right now, the company has incentive to drive down book prices. When they have more control over the market that will probably change. But how many of us honestly think Amazon would give back the same proportion of royalties, in that case? Absent strong competition, they'd have no reason to do so. Be assured, they'll try to couch such changes in the best possible light, too.
If I self-pub via Kindle, that won't be my only digital platform. And I'll go into it with a healthy skepticism toward Amazon's services-marketing arm.
Most of my sales are through Amazon. Many of my e-book purchases, too. I know authors who are doing well at self-publishing there. But I don't for a moment ascribe completely benevolent intentions to Amazon. They're out to make money and bury the competition.
Books are probably still a loss-leader compared to other consumer goods sales. Right now, the company has incentive to drive down book prices. When they have more control over the market that will probably change. But how many of us honestly think Amazon would give back the same proportion of royalties, in that case? Absent strong competition, they'd have no reason to do so. Be assured, they'll try to couch such changes in the best possible light, too.
If I self-pub via Kindle, that won't be my only digital platform. And I'll go into it with a healthy skepticism toward Amazon's services-marketing arm.
lol thanks, I made it my sig.
Thankyou. It’s good but I don’t think it’s future proof.
Yes, although they’re out to bury the competition by not making money, having not turned a profit in 20 years. Here’s a chart of turnover compared to net profit (or revenue compared to net income as they put it)…
http://www.businessinsider.com/chart-of-the-day-a-long-view-of-amazons-profits-2013-8
If money were the “oxygen” of business you could say that competing against Amazon on price is like having an underwater breath-holding competition with a dead body, which is the equivalent of what Amazon is by normal business standards. No other company has been given such leeway by wall-street, ever since Amazon was “floated” (pardon the pun).
Amazon loses money on its prime service and its entire retail business.
http://seekingalpha.com/article/133...h-prime-and-its-entire-direct-retail-business
The only places its makes any money are 3rd Party sales (3P) and Amazon Web Services (AWS). Its accounting is never very transparent either.
Amazon has the patent on selling second hand eBooks.
http://motherboard.vice.com/en_uk/b...ulous-idea-that-could-ruin-authors-publishers
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