Amazon Kindle has made a rather interesting proposition in which they want to partner with retail bookstores to sell Kindle in stores. It is called Amazon Source, and this means that even independent stores will be able to sell Amazon Kindle. This is likely to compete with Barnes and Noble's Nook, which is very prominent in their stores.
As “Booksellers,” an option available to retailers in twenty-four states, they receive Kindles from Amazon at a six-per-cent discount off the suggested retail price and earn a commission of ten per cent on e-book sales in the two years following the sale of a Kindle. As “General Retailers,” available to stores in any state, they profit only from the sale of the device, but obtain it from Amazon at a discount of nine per cent."
Needless to say, there has been a bit of backlash. While Amazon says that the response from retailers has been extremely strong, they only have two pilot participants, who are the University of Puget Sound Campus Bookstore, in Tacoma, and JJ Books, in Bothell. Independent booksellers are quite unhappy about this, who are probably wary of the fact that Kindles could put them out of business. Personally, I would be too, if I were them. But either way, it looks like a win-win deal for Amazon. Not so sure about the independent booksellers: it's probably better that they monitor their trends and that they find out what exactly they are getting into.
Either way, Amazon has nothing to lose.
Either way, Amazon has nothing to lose.
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