Digital Directions: The iPad Impact
How Steve Jobs and his tablets saved us all.
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The End of the Wholesale Model
Another industry practice advanced by the Kindle program is the use of the wholesale sales model for e-books. In the wholesale model, publishers sell books to retailers at an established price, typically 50 percent of retail. Retailers can sell the title at whatever prices they like. Amazon used the wholesale model to try to drive both Kindle device and e-book sales by pricing e-book titles at $9.99, even if that was less than the wholesale price Amazon paid to the publisher. Amazon subsidized the marketplace. This tactic indeed proved successful in the short-run at driving sales and giving a kick-start to the Kindle program and the e-book marketplace.
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- Companies:
- Amazon.com
- Apple
- People:
- Steve Jobs
Andrew Brenneman
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