e-Books Prices Drastically Rising Even at Amazon.com

Book publisher think that everyone is dumb. They argue that they can't make money on $9.99 ebooks because of distribution cost.

So how do they make money on $9.99 physical books when they have to print and ship them? Isn't ebooks supposed to be more profitable and easy to distribute? The answer YES.

Then why Amazon.com and Macmillian had a disputed yesterday over ebooks prices? Because Amazon believe $9.99 is a reasonable price for an ebook and Macmillian like the rest of the industry wants more. They know $9.99 is a good price and their profits will be in line if not better that with physical books.

But they still feel that if people spent $250-$800 in a reading device they will easily afford a higher price. And because the publisher managed to get better terms on book prices from Apple they had started to put presure on Amazon and other online retailers to raise prices. So the new price will be for now $14.99

Amazon agree today to the higher price demand but said it believe the ebooks will be over priced.

So in the short term we may see ebooks price raise across the board and across platforms.