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Amazon isn’t just a distributor, it’s a hoping to be the major publisher of e-books. When Amazon buys ebooks for $13 wholesale and sells them for $10 retail, and its gargantuan size means it can keep up the practice indefinitely, the strategy isn’t just jarring publishers into adopting lower price points. Because Amazon offers writers a better royalty for publishing directly, its pricing strategy is aimed at squeezing publishers out of the equation entirely.