Exercising the Power of Market Share
February 28, 2012 1:43 PM Subscribe
Last week, small press distributor Independent Publishers Group (IPG) announced that Amazon has decided to stop selling Kindle editions for the publishers IPG represents. The decision impacts over 500 small publishers and almost 5,000 Kindle titles. Neither party has offered much in the way of specifics, but other publishers have been reporting that Amazon has been pressuring them to offer higher discounts and/or pay a “co-op” fee of an additional 3%-4% on all sales to cover the cost of offering “automation and personalization” services (i.e. Customers who bought x also bought y). Authors and publishers have been reacting to the development.
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