Book pricings wars and the New Yorker take on it all

[B.R.Stateham]

Look at this article from the New Yorker. An interesting take on the Wal-Mart/Amazon pricing wars.

http://www.newyorker.com/talk/financial/2009/11/09/091109ta_talk_su...

[I. J. Parker]

Hah, and no returns. I'm all for that. The returns hurt authors. For that matter, in defense of Amazon vs. book stores: Amazon carries all my books. Book stores may not carry any of them.

[B.R.Stateham]

As far as I know these are all online book sales. No discounts in the stores.

[John McFetridge]

Is Wal-Mart selling the books for $9.98 in their stores, too, or just online?

The online sales eliminate returns, so that has a huge effect on the cost of a book.

[R. Michael Phillips]

I read the article the other day and Walmart is discounting 10 best sellers as a lost leader, and then Amazon jumps in to match it, and so on. Walmart will sell books, but they really want you on their site to purchase other things that have a regular markup. The Amazon and Walmart on-line stores aren't that different and that's the angle Walmart is going for. People go to Amazon for books, but while they're there a percentage of the customers shop for other items. Walmart knows that and hence the $9.98 bestseller. Whatever you can get at one you can get at the other. It's all about market share. The local bookshop is the real loser. They're not in a position to sell a book under cost.

[I. J. Parker]

Well, it's interesting, but I don't quite follow the logic. He seems to think that this will force the publishers and book stores to slash prices. Book stores I see, but why should the publishers care as long as they make big sales of discounted books at their own discount? Devalue the books? Not at all. That happens with libraries and used book stores -- and the discounts that are already being offered. And bestselling authors have collected their millions up front.
Amazon is not going to be greatly threatened by Walmart, which isn't really in the book business. Most book buyers are still going to Amazon with its proven performance.
But of course, just as in all the other developments, the non-bestselling authors will be hurt.