walkitout (walkitout) wrote,

Amazon and giving kindle books

This is something that has been bugging me and some of my friends for a couple gift giving cycles now, but lately it has been getting more visibility. Joe Wilkert at:


Has, unfortunately, little of interest to add. And some of what he is saying indicates that people are not doing stellar analysis of how much amazon is making on kindle books.

"Someone receiving a gift card might buy something other than a Kindle book with it.  Don’t forget that Amazon loses money when it sells many of those Kindle editions.  From a profitability point of view, Amazon is much happier selling you the print edition of that book than the Kindle edition."

The source on the losing money assertion is himself over on his own blog. Not cool. Also ignores the Prime shipping issue with heavy buyers. But it does not matter. If you look at what amazon is charging for kindle books available as trade paperbacks, it is impossible to miss just how much they must be making even on sub $9.99 ebooks. Also the agency model effect.

I know how to write code. I really do. And honestly, there are a few hairy little issues associated with gift ebooks. They can be resolved but it is probably not a priority until this Xmas at the earliest.
Tags: e-book coverage
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