Amazon Source  NOV 06 2013

Amazon introduced their Amazon Source program today, which enables indie booksellers to sell Kindles and receive a cut of future Kindle book sales made on those devices.

Retailers that are part of the program can use Amazon Source (http://source.amazon.com) to purchase Kindle devices and accessories for resale. Retailers can choose between two programs:

1) Bookseller Program: Earn 10% of the price of every Kindle book purchased by their customers from their Kindle devices for two years from device purchase. This is in addition to the discount the bookseller receives when purchasing the devices and accessories from Amazon.

2) General Retail Program: Receive a larger discount when purchasing the devices from Amazon, but do not receive revenue from their customers' Kindle book purchases.

Amazon Source aside, I've often wondered if an independent bookstore could sell their usual selection of paper books but also sell Kindle books to those who wanted them. The bookstore would basically buy the books as gifts for the customer through Amazon and take the affiliate fee (which is 8.5% with sufficient monthly sales volume) as profit. (The fee on magazine subscriptions is 25%!) I love frequenting indie bookshops -- the browsing experience of a good bookstore is still far superior to that on Amazon or a Kindle -- but I don't buy paper books anymore. So I usually leave bookstores with a list of 2-3 books I later buy on Amazon...it would be nice if the bookstore gets a cut of that action. If it worked well enough, the physical books in the store would be more like advertisements for the digital copies than salable items and you could change how you stock the store...less overall inventory or a more varied inventory with far less overhead.

Knowing next to nothing about the economics of bookstores, I don't know how well that would actually work, but it would certainly be an interesting experiment. (via @tcarmody)

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