From: Blogging Authors ~ Who Are All Those Resellers of Your Book?
So, let’s do a little math here to see what really happens. Standard bookstore discount is 40%, which means Amazon paid Ingram $11.97 for our $19.95 book. In reality there is a $7.98 profit margin. The speculating reseller (the lowest priced one for our book) can also buy the book from Ingram for $11.97, but is selling it on Amazon for $16.46 and pocketing $4.49. The buyer of the book pays for the shipping/handling costs therefore there is no other output by the reseller except time and a small listing fee. Sounds like a lucrative business to me.
I’ve heard from many angry authors that refuse to list their book on Amazon or feel they aren’t making any money when books are sold through that site. In fact, some have written nasty (and I mean NASTY) emails telling me they refuse to deal with us because we give links to Amazon so potential readers can buy the book. To me, this is shooting oneself in the foot. I don’t get it.
Thanks to Rick Reed for the linky.
Tags: Kindle
