eBooks are agency model - that is, the publisher sets the selling price, the retailer takes a cut like 30% on sale (like the appstore) Physical books are whole

eBooks are agency model - that is, the publisher sets the selling price, the retailer takes a cut like 30% on sale (like the appstore) Physical books are wholesale model. The retailer sets the selling price, and the publisher always gets the negotiated wholesale price, usually around 50% of list. So they are two different things. The publishers are mad at Amazon fro hating on agency pricing. Agency pricing takes away Amazon's ability to compete on price - that's why Amazon doesn't like it.