Is it understandable that Amazon wants to make as much money as possible for themselves? Of course it is. But that's their only motivation - making money. They are never about improving things for authors/readers unless it spells more money for themselves.
Which is different from publishers, how?
I have the same question!
If (big) publishers want to "improve things" for authors, why do we have agents? Why do we
need agents?
I'll tell you a little anecdote. Last winter I was offered a digital contract by HarperCollins for my out-of-print, rights-reverted first novel. I was all excited, at first. I had been sitting like a beggar outside their palace on Fulham Palace Road, London, for a decade, yearning to get back in through those doors, at any price.
My wonderful editor, however, had rejected every one of the four novels I wrote in those ten years; not because they were bad but because the publisher, ie the number-crunching men-in-suits at the top, did not think there was a market for what I wrote -- the Brits can't take too much diversity, it seems.
Anyway. I presented the offer to my agent, Trident Media, who decided they didn't want to negotiate the contract for me. And HC then told me that they had a dispute with TM due to their 25% royalty rate. Which made me take a more critical look at the deal.
Long story short, I decided to go it alone, and after a bit of back and forth with a very nice employee (who always had to discuss things with some nameless higher-up before replying to my questions) they sent the contract, which I forwarded to my contact at the Society of Authors. At least six changes had to be made, all of which were things we had agreed upon via email, and all of course in HC's favour. It was all extremely devious. They would have been very happy to pay me even less, you can be sure! Just because I didn't have an agent. They agreed to all the changes. I came very close to signing.
But in the end I chose to go with an independent publisher. When I got their contract I also forwarded it to SoA, and nothing had to be altered. In fact, one of the terms was so favourable to me SoA commented on it. Personally, I'd rather be a big fish in a small pond than a small fish in a big pond. I got more that twice the royalty and many times more attention.
Another thing: a few years after the rights to that book reverted to me, I discovered that HC had secretly put a PoD edition on sale on Amazon. Totally illegally, and behind my back.
So, like I said: they are no angels, and definitely not out to help authors.
They are both big corporations.That really says it all.