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Amazon Digital Markup: 129,000%

andrewhy.de

11–20 of 143 posts

Re: Amazon Digital Markup: 129,000%

#11
post #5

ctrl+f whispernet 0 results found He's forgetting about the cost of delivering over a cell phone network.

If you actually read the article you'll see that he addresses this and that it applies to wifi purchases.

But there's no difference from amazon's perspective, because once you bought the book, you can download it over 3g at any time, multiple times.

Re: Amazon Digital Markup: 129,000%

#12
post #6

If you use the end user cost you can get a high end estimate for total cost of 3g service. $30 for 2GB of data makes $0.015/MB * 18.1 MB file makes for a total cost to user of $0.27 for delivery.

Sure, on paper you get 2GB for 30$, but really your paying 30$ to be part of a pool of people that use below 500MB on average and some of them pay a lot more than that in overage feels for downloading 2.01+GB.

A more realistic number might be 15$ for 200 MB with the risk of overage fees = 1.35$ for 18.1MB. Amazon may pay more per MB than you do because of that lack of subscription good for life of the device thing or less, but they also have overhead to track that etc.

Re: Amazon Digital Markup: 129,000%

#13
This is naive as it fails to consider that Amazon has probably made a considerable loss on the Kindle hardware business to create this market the OP is lucky enough to participate in. This investment alongside the investment in their own AWS infrastructure is why there is a reasonably sized market for ebooks right now. Also how about the cost of cellular data?

The cost might be a little high but if you don't like it, you have the choice to take your business elsewhere.

Re: Amazon Digital Markup: 129,000%

#14
This is confusing. Here is someone with a FANTASTIC first outing of a book and he's whinging about it?

The author raises $8K on Kickstarter, sells his book for $10, and is complaining that the 'gorilla' is taking a bigger percentage of the take?

Using his numbers: of 73%/11%/12%/1% his money was $1117/$231/$333/$20 respectively. So he made three times as much money selling through Amazon as he did on the next closest service (PDF).

So what is his complaint? That he didn't read the contract completely? Would he have forgone selling his book on Amazon if he had? Assuming he was trying to get $7/book out of them would he have raised his book price to $15 to pump that price up? And what would that have done to his volume?

Its all well and good to posit that you could store your book on an FTP server at Hurricane electric but how would people find it? How would they read it?

And then why all this angst over the first few months? The kickerstarter [1] only funded in April, here it is June he has his book out, most travel magazines have like a 3 month lead time on their content, plus folks need to review it etc. What was he expecting? And more importantly since this reads like he is hugely disillusioned by the experience exactly why was he expecting what he was expecting? Didn't he 'get' that he could not have published this book at this level of success at all prior to Amazon?

[1] http://www.kickstarter.com/projects/andrewhyde/this-book-is-...

Re: Amazon Digital Markup: 129,000%

#16

This is confusing. Here is someone with a FANTASTIC first outing of a book and he's whinging about it? The author raises $8K on Kickstarter, sells his book for $10, and is complaining that the 'gorilla' is taking a bigger percentage of the take? Using his numbers: of 73%/11%/12%/1% his money was $1117/$231/$333/$20 respectively. So he made three times as much money selling through Amazon as he did on the next closest…

At a guess: the author feels ripped off in the same way I feel ripped off when I buy an airline ticket and have to pay $25 to check a bag, $12 for a sandwich, etc. If amazon's fee is $4.50 they should say so instead of burying a cost almost equal to their quoted fee in fine print.

Edit: also, amazon grants themselves MFN status [1] at the authors' expense. So they exploit their market size to make sure authors can't make up for the kindle being nearly 100% more expensive than competitors.

   By "price-match" we mean where we sell the Digital Book in one
   or more of the Available Sales Territories at a price (net of
   taxes) that is below the List Price to match a third party's sales
   price for any digital or physical edition of the Digital Book, or
   to match our sales price for any physical edition of the Digital
   Book, in any one of the Available Sales Territories.

[1] https://kdp.amazon.com/self-publishing/help?topicId=A29FL26O...

Re: Amazon Digital Markup: 129,000%

#17

This is confusing. Here is someone with a FANTASTIC first outing of a book and he's whinging about it? The author raises $8K on Kickstarter, sells his book for $10, and is complaining that the 'gorilla' is taking a bigger percentage of the take? Using his numbers: of 73%/11%/12%/1% his money was $1117/$231/$333/$20 respectively. So he made three times as much money selling through Amazon as he did on the next closest…

The only problem I could see would be if Amazon sales were cannibalizing other avenues, leading to a lower overall profit. But I'm sure even if this is the case, Amazon's volume more than makes up for it.

So yes, this rant is pretty pointless. This is the way every marketplace works nowadays: iTunes or Themeforest are the same. They take a big cut and reinvest the profits in marketing and advertising to grow the marketplace larger (and thus generate more profits for you in the long run).

Re: Amazon Digital Markup: 129,000%

#18
post #11

Earlier quoted context omitted.

If you actually read the article you'll see that he addresses this and that it applies to wifi purchases.

But there's no difference from amazon's perspective, because once you bought the book, you can download it over 3g at any time, multiple times.

There is no way that the average purchase costs $2.50+ to deliver, even amortized over the lifetime of the book.

Amazon can charge whatever they want; I just think they should be transparent about what people's net pay will be. It's disingenuous to advertise that you take a 30% cut plus "delivery costs," and then mark up the "delivery costs" to over 25% of the average book price. Apple uses a similar paradigm (processing fees do not come from their 30%), but they only deduct the actual processing fees.

Re: Amazon Digital Markup: 129,000%

#20

This is confusing. Here is someone with a FANTASTIC first outing of a book and he's whinging about it? The author raises $8K on Kickstarter, sells his book for $10, and is complaining that the 'gorilla' is taking a bigger percentage of the take? Using his numbers: of 73%/11%/12%/1% his money was $1117/$231/$333/$20 respectively. So he made three times as much money selling through Amazon as he did on the next closest…

"What is the marketplace doing to earn this percentage of my sales?" seems to be a common question asked by sellers. The last thing on their minds it would seem is the fact that the marketplace is selling their item for them and providing the infrastructure so that they don't have to handle all that PITA interaction. This is especially true of Amazon. You get a lot of value by selling on their marketplace. The high number of sales, delivered to a device that many people own and enjoy using to consume content, the trust associated with the Amazon brand and the reviews by "real people."
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