The Glass is Too Big - Home

Why Amazon Doesn't Care If You Buy New Or Used

Originally published on: 10/31/2005 6:40:29 AM

With the furor over Google Print (with the Author's Guild suing them over indexing printed books), I'm reminded of the last time the Author's Guild sued someone high profile: Amazon.com. They objected over the sale of used books in the past, as have lots of others. Recently, I've heard people wondering why Amazon is OK with putting the used items right up there next to the new ones. The thing a lot of people don't know about Amazon's pricing and their selling programs is that in many cases, they make MORE if you buy the used copy than the new one. Leaving aside the $0.01 novels, if the used price is anywhere near the ballpark of the original price, their commission is often enough with the extra shipping profit to make them more money for sending you as a seller an email and making a deposit in your account than they are getting the big warehouse to ship something. What that gives Amazon is effictively the same revenue stream as Ebay has: connecting buyers and sellers and taking a cut of the transaction. Oftentimes, it helps to think not of what it *looks* like a company is selling (new books, new movies, new CD's), but rather what they are after: profit. If you ran a pizza joint and discovered you made 3x as much revenue and profit from your chicken wings than from your pizza, should you be upset, because you're a "pizza joint"? Or, should you get the word out about the wings and not worry about it?

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