Some authors still seem to be confused about Agency pricing, what it means, and how does it compare to wholesale pricing on ebooks and paper books. But the rationale for a deal is compelling: Walmart ( WMT ) would gain access to 1.3 billion consumers in a market where it currently has very limited operations. Lore has experience competing with Amazon before, as CEO of Quidsi, whose main site was Eventually, it bought him out for more than $500 million back in 2010. So effectively you’d still rely on Agency pricing to maintain control, or you’d let the market sort it out. Another major advantage for retailers is the ability to rapidly switch suppliers and vendors without disrupting users’ shopping experience.
Your $1.25 example assumed the publisher charged Amazon $5.00 wholesale, and Amazon doubled the price to set retail at $9.99. And when the other distribution channels are no more, …Read More