Hardball, Amazon Style
Posted by Victoria Strauss for Writer Beware Amazon has been paying hardball lately. In February, Amazon and major publisher Macmillan went head-to-head over ebook pricing , with Amazon wanting to keep the wholesale pricing model that has till now been the norm for both ebooks and print books, under which retailers can discount book prices as much they like; and Macmillan insisting on the newer agency model, under which pricing is controlled by the publisher (a system that does not allow for discounting). When Macmillan refused to give in, Amazon turned off the buy buttons for Macmillan's books--all books, not just ebooks. Ultimately, Amazon capitulated , admitting that it wanted to carry ebooks from Macmillan, even at higher prices. But who really won that face-off? Though Amazon bowed to Macmillan on the matter of pricing, the dispute allowed it to demonstrate the power of the buy button shutoff--and it now appears to be using this as a negotiating tool. Last week, the New York ...