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Joined
3 yr. ago

  • At a guess:

    • Volume discount: Amazon will buy a hell of a lot more books than a single mom and pop store
    • Retail rule of thirds: (very loosely) a third of the price you it goes to manufacturing, a third to distribution/logistics, and a third to the retailer. Amazon vertically integrates the second two.
    • Online only: website capacity costs a lot less than running a brick and mortar store
    • Margin: amazon will make less per book but sells more books because people prefer to buy them cheaper. There’s a separate discussion here about anti competitive practices (eg undercutting competition to put them out of business, then raising prices later) but that is a whole other debate