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Has Amazon (AMZN -0.1%) responded to Borders' bankruptcy and Barnes & Noble's (BKS +1.8%)...

Has Amazon (AMZN -0.1%) responded to Borders' bankruptcy and Barnes & Noble's (BKS +1.8%) struggles by paring back its book discounts? Writers and publishers talking to the NYT say that's the case, at least for "scholarly and small-press books." A trade firm surveying 18 publishers found 14 of them saying Amazon had, over the last few years, "either lowered discounts on scholarly books or, in the case of older or slow-selling titles, completely eliminated them." An Amazon spokeswoman insists the e-commerce giant is still lowering prices.
Comments (7)
  • Paulo Santos
    , contributor
    Comments (17844) | Send Message
     
    "over the last few years" AMZN increased prices and yet profits went to zero?
    5 Jul 2013, 11:50 AM Reply Like
  • krk
    , contributor
    Comments (821) | Send Message
     
    Sad that the DOJ was so blind to the elephant in the room in pursuing their misguided e-book anti-trust case against publishers and Apple.
    5 Jul 2013, 01:23 PM Reply Like
  • Gary J
    , contributor
    Comments (3564) | Send Message
     
    Of course another way to say this is "over the last few years" AMZN increased prices on books, one of many parts of its revenue streams

     

    and yet profits went down as they refocused on investment and innovation at the expense of current profits as per the CEO's pronouncements.
    5 Jul 2013, 02:21 PM Reply Like
  • Paulo Santos
    , contributor
    Comments (17844) | Send Message
     
    Sure, because AMZN is that special company where investment totally destroys earnings, unlike other growth companies.

     

    And it's better for that, it needs a premium for that, after all nobody else can say that their growth destroyed earnings. That gotta have value.
    5 Jul 2013, 02:40 PM Reply Like
  • DanEp
    , contributor
    Comments (26) | Send Message
     
    I don't think their book profits went to zero because of higher prices. If anything they were losing money on best sellers in order to get more lucrative sales. I don't think they ended up with more profits, just more revenue. Apple may have actually done them a favor by getting them out of that habit. It also seems like every business Amazon starts in is a loss leader for the future profits. The question is will they ever have the future profits big enough to justify their current valuation.
    5 Jul 2013, 02:21 PM Reply Like
  • Paulo Santos
    , contributor
    Comments (17844) | Send Message
     
    Zero is their overall profits.
    5 Jul 2013, 02:39 PM Reply Like
  • bryon Li
    , contributor
    Comments (95) | Send Message
     
    If Microsoft or Google comes in to lower ebook prices using Amazon's tactic to gain market share, that will be interesting. By the way, both Microsoft and google have other big cash cow to win this war. Microsoft is in the process to take over B&N.
    6 Jul 2013, 04:43 AM Reply Like
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