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Amazon Digital Markup: 129,000%

andrewhy.de

31–40 of 143 posts

Re: Amazon Digital Markup: 129,000%

#31
post #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…

Agreed.

Amazon charging 30%, then another $2.50 is sketchy, why not just charge 50%, or at least avertise the price as a fixed $2.50 plus 30%? Questionable on Amazons part, without a doubt.

Re: Amazon Digital Markup: 129,000%

#33

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…

He is making an entirely justified complaint that Amazon charges unreasonable fees. The idea that any and all corporate behavior is fine simply because "it says so in the contract" is ridiculous. You aren't actually paying attention to what the author wrote - he even specifically talked about how Amazon's Kindle platform provides a good experience for readers and has accounted for the majority of his sales. His post…

> charging several dollars for a "delivery fee" of a digital book is OBVIOUS BS!

Do you think that the largest file sharing service (S3) and the largest public cloud computing infrastructure (EC2) in the world just operate for free? Digital delivery fees help pay for the millions in hardware, software, infrastructure and maintenance costs for these services, which Kindle uses extensively.

Re: Amazon Digital Markup: 129,000%

#34

It seems like the telco's are the ones making out here. They charge Amazon some ridiculous fee to deliver the content and they charge the consumer for a data plan for the device.

Most Kindle purchases are coming from a Kindle, which never has a consumer data plan. 3G Kindles' cell usage is paid by Amazon.

Re: Amazon Digital Markup: 129,000%

#35

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,…

So the $2.85 delivery isn't so much the digital download but the digital download + the kindle subsidy.

Re: Amazon Digital Markup: 129,000%

#36

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…

You assume all of the Amazon traffic was organic. He directed all of his marketing efforts to the book on amazon.com; presumably he could have captured a good number of those purchases elsewhere. I think the real issue is less about costs and more about how Amazon hides big revenues behind "delivery fees." Most platforms (Apple, Google, PayPal, even Amazon in the AWS world) that take a percentage cut + special fees s…

They charge him $.15/MB to delivery the book[1]. Cell carriers charge you ~$15/200MB = $.075/MB for data. Certainly a markup, and it gets better as more people use WiFi, but not 129000%.

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

Re: Amazon Digital Markup: 129,000%

#37

Earlier quoted context omitted.

He is making an entirely justified complaint that Amazon charges unreasonable fees. The idea that any and all corporate behavior is fine simply because "it says so in the contract" is ridiculous. You aren't actually paying attention to what the author wrote - he even specifically talked about how Amazon's Kindle platform provides a good experience for readers and has accounted for the majority of his sales. His post…

> charging several dollars for a "delivery fee" of a digital book is OBVIOUS BS! Do you think that the largest file sharing service (S3) and the largest public cloud computing infrastructure (EC2) in the world just operate for free? Digital delivery fees help pay for the millions in hardware, software, infrastructure and maintenance costs for these services, which Kindle uses extensively.

Fair point, but don't you think It'd be nice if they advertised the price for said fee, or at least provided a chart for fees/mb? It seems like it is a "hidden cost", not outlined in detail, leaving the client in the dark, which appears to be the problem here.

Re: Amazon Digital Markup: 129,000%

#38

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,…

I think the complaint focused on other costs that were pushed onto the author. If amazon presented a larger cost structure (increase their per-unit charge) but covered costs like content delivery, I don't think the author would have as much of a problem.

Re: Amazon Digital Markup: 129,000%

#39
post #3

I strongly suspect Amazon is offering well-known, "must have" authors a much better deal -- possibly even losing money on sales of some of their books -- and making it up by giving a raw deal to less-well-known, independents like Andrew Hyde, the author of this blog post. Does anyone here know if this is indeed the case?

The well known must have authors don't self-publish directly on amazon, they have publishers who handle all that sort of negotiation for them. And part of that negotiation surely includes talking amazon down on the delivery fees.

However, authors who publish heir work through a publisher also don't make 55% royalty, so the author of this blog post is still better off than he would have been.

Re: Amazon Digital Markup: 129,000%

#40

Earlier quoted context omitted.

You assume all of the Amazon traffic was organic. He directed all of his marketing efforts to the book on amazon.com; presumably he could have captured a good number of those purchases elsewhere. I think the real issue is less about costs and more about how Amazon hides big revenues behind "delivery fees." Most platforms (Apple, Google, PayPal, even Amazon in the AWS world) that take a percentage cut + special fees s…

They charge him $.15/MB to delivery the book[1]. Cell carriers charge you ~$15/200MB = $.075/MB for data. Certainly a markup, and it gets better as more people use WiFi, but not 129000%. [1] https://kdp.amazon.com/self-publishing/help?topicId=A29FL26O...

But remember, they're charging that $0.15/MB even for people who don't own a 3G-capable Kindle. In those cases it really is roughly a 120,000% markup over an already profitable service.
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