Earlier quoted context omitted.
> Goodreads was better at helping users find new books they wanted than amazon themselves and so it made sense for amazon to buy them. I still don’t get it - people were already finding books on Goodreads and buying them on Amazon... so why did Amazon need to buy them? Why pay for it if it’s already working for you? And why pay a referral fee if people already want to ignore other options and go to Amazon to buy afte…
Because they had to pay goodreads a commission each time (say 5% —> i’m completely making this number up and its probably a lot lower). So if 70% of goodreads profit is from Amazon, amazon figured they could just buy them since the cost of running goodreads is a lot lower than the commissions it makes so amazon was basically paying them anyway. better (in their view at the time) to just pay goodreads one off and buy…
But why were they doing that?
"the vast majority of internet users were hooked on Amazon" so they were buying through Amazon anyway.