There exists a sweet spot in prices where if the book sells for less, it sells more copies and then brings in more revenue. Amazon's Kindle model charges a per

There exists a sweet spot in prices where if the book sells for less, it sells more copies and then brings in more revenue. Amazon's Kindle model charges a percentage of each sale, so it is in their best interests to price books lower so that they will earn more income. The Kindle store does not make very much money, in fact Amazon does not make much money from selling things because they sell them as cheap as they can almost at cost or in some cases below costs like their Kindle tablets. They try to make up the selling tablets at a loss by income from Kindle and Amazon Market Appstore Android app sales. We've already seen a price war on mobile apps going as low as 99 cents and in some cases free with in-app purchases or a freemium model. Ebooks are heading that way as well. Walmart does this, lower the price and make it up by selling in large numbers. Get people into their store for the low prices and then sell them more things when they are in the store. At Amazon a person can buy a Kindle book and then buy a few more books or go buy some products from the Amazon store or pay for a Prime membership to watch videos, etc.