Monday, February 13, 2012

Amazon Will Destroy You

I've been hearing a lot of whiny bitching on the interwebs over the past year.

"Amazon is going to put Big 6 publishers out of business!"

"Amazon is a bully!"

"Amazon is going to destroy bookstores!"

"Amazon engages in unfair business practices!"

"Amazon is the devil!"

"Amazon is going to monopolize the industry, then force all authors to work in labor camps for 6 cents an hour!"

"Amazon is going to invent a car that is fueled by the screams of puppies!"

"Amazon is going to take over the world!"

That last one is probably true.

I just got back from Seattle with my cohorts Blake Crouch and Barry Eisler, and we met with some key players in Amazon's various publishing endeavors.

None of them discussed anything confidential with us. We pretty much just ate and drank and had fun. And it also pretty much confirmed what I've known for a while now.

Amazon is going to destroy the Big 6, destroy bookstores, destroy 95% of all agents, destroy distributors (Ingram, Baker & Taylor), and revolutionize the publishing industry by becoming the dominant force.

If you are any of the above I mentioned, you probably want to blame Amazon.

You'd be wrong.

Most of the blame falls upon that person you see in the mirror.

Some of it falls on your customers and authors, who like Amazon more than they like you because Amazon treats us better than you ever did.

Blaming Amazon for your eventual downfall is like blaming a lion for being king of the jungle.

If you don't like apex predators, get the hell out of the food chain.

Here's the thing, all you whiners. You had your shot. And you blew it.

Hardcovers cost too much. So do paperbacks. As media goes, paper books cost too many dollars per hour of entertainment they provide.

The return policy for books is archaic, wasteful, and stupid. It encourages overspending, overbuying, and underselling.

Underestimating the importance of digital was suicide. Then trying to prevent its widespread adoption via windowing titles, the agency model, high prices, and DRM was just throwing gas on a fire.

Treating authors like shit, when authors are essential to the process, is bad business.

Treating readers like shit, when readers are essential to the process, is bad business.

Bookstores and publishers and distributors are NOT essential to the process. You should have evolved.

Why didn't the Big 6 invent online bookstores and ereaders? Why didn't the ABA?

Amazon INNOVATES. That's the thing you whiners don't understand. They're not dominating because they undercut you on price. Price is just one way to please customers. Service is another. Value is another. But the biggest one is technology.

Anyone can sell for cheap. Not anyone can single-handedly jump-start the digital revolution. Not everyone can create an online store that is not only a pleasure to shop at, but where it is fun to spend time.

Amazon is going to eat you all for lunch because they aren't thinking about how to make money tomorrow. They're thinking about how to make money in 2018.

They're doing all the stuff you never did--hell, they're doing stuff that you never even thought of. They're all about pushing it forward. They're all about gathering and analyzing data. They're all about challenging themselves to do better, to focus on the future, to learn from the past. They're all about pleasing the customer (and I heard from no less than half a dozen Amazonians that they consider authors to be their customers.)

They experiment. They change. They evolve.

Are they perfect? Hardly. Show me a business, no matter how tiny, that is perfect. In fact, show me a person who is perfect. We all make mistakes as we strive to better ourselves.

But when Amazon makes a mistake, they own it. They don't compile mistake upon mistake until an industry is satisfied with an 80% return rate for books and a maximum of 17.5% royalties for authors and a $35 price tag for the new Stephen King.

It's easy to hate your competition, especially when the competition is kicking your ass.

But do you innovate?

Do you push the industry into the future, or try to protect the past?

I'm not seeing any innovation. At best, I'm seeing imitation. At worst, I'm seeing whiners.

"Poor me! Someone does my job better than I do!"

"My girlfriend likes another guy more than me because he's smarter, nicer-looking, and treats her better!"

My advice: if you're sick of getting beaten up, go to the gym and start training.

For years I've been telling publishers and booksellers how they can compete. I haven't seen any of them follow any of my suggestions.

But guess what? I've spent hours talking to Amazon. And Amazon listened. They took notes. And I've seen them adopt my suggestions. Many times. And I'm not the only one they're listening to.

An open mind beats a closed mind, every single time. Once you start blaming, you've lost.

Winners don't blame. Winners don't whine.

Winners keep at it until they win.

And to Amazon: don't worry about the blamers and the whiners and the haters and the naysayers.

History is written by the victors.

It was great hanging out with you Amazon folks. And as always, thanks for listening. ;)


270 comments:

«Oldest   ‹Older   201 – 270 of 270
Optional Delusion said...

I have to agree with J. Steven York
& Jacqueline. Amazon will only be good for authors as long as it makes business sense for them to be. I agree with Joe that Amazon will destroy the big 6, but once they do that then at some point it'll be more cost effective for them to stifle competition than it is for them to innovate. Saying "why worry about the monopoly that may or may not come when they're destroying the monopoly that currently exists?" is a bit like Native Americans choosing to ally with the French over the British. It's a short sighted solution to a larger problem. Why does Amazon want exclusives from some of their authors? Wouldn't it benefit everyone for the author to be more widely read and distrubted? Stephen King didn't get to be Stephen King by being offered in one chain of bookstores (though maybe HE could have). They are already walling off their garden. When all your favorite authors are only on kindle then why fire up ibooks or nook apps? And if not offering the kindle app on ipads or xoom tablets sells more of their own hardware then doesn't that make good business sense? If then a leaner and meaner startup comes and offers an author an extra 20% over what amazon is offering, can an author then afford to change ecosystems if a majority of their readers are in a closed system? Amazon is beholden to shareholders then customers THEN content producers. And there are many many ways to screw the last two while keeping the first happy once you dominate the playing field.

Anonymous said...

@Booklover
Yep, those conditions sound bad. Not as bad as migrant workers or a bunch of other jobs but, if the article isn't biased, still bad. One of the Goodyear factories in town here has temperatures similar to that though and its unionized.

As for others than big name authors doing well, there's tons of posts on previous blogs on people's personal experiences. And on Passive Guys, Dean Wesley Smith's and Kristine Kathryn Rusch by various new authors.

Anonymous said...

Booklover wrote:

Sure, anyone who writes a book can jump into Amazon's giant slush pile and hope for the best, but how many besides Joe and Barry Eisler and others with similarly high profiles are making real money?

Sure, anyone can jump into ____'s slush pile and hope for the best, but how many people besides Stephen King and Grisham and Rowling and other high profile people are making real money?

Anonymous said...

@Booklover: Well I think is at least 100 writers out there doing very well at this; but probably few with the success of these guys. One thing to keep in mind, it's all certain formula novels (thriller, erotica,romance, historical fiction, fantasy,vampire) and nothing at all outside of those bounds.

Anonymous said...

Amazon does more than listen. They created a online culture when people could leave feedback. I'm sure many people are like me and whenever I'm trying to make up my mind on which model or brand of something to buy--or which book is best for me. I check the reviews on Amazon.

Plus a shout out to Baen--the one traditional publisher who gets ebooks and has innovated.

Joshua Simcox said...

"Who buys books because of the logo on the spine? If you pressed me for what author was published by what company, I doubt I'd get any of them right."

Dorchester, prior to becoming one of the biggest jokes in genre publishing, actually came very close to achieving that sort of brand loyalty.

I bought numerous titles from Dorchester's horror line, even from authors I had never read before, simply because I knew that any paperback with a Dorchester logo stamped on the spine would provide a certain type of reading experience. Many other readers felt the same way.

--Joshua

Anonymous said...

Sure, anyone who writes a book can jump into Amazon's giant slush pile and hope for the best, but how many besides Joe and Barry Eisler and others with similarly high profiles are making real money?

First, no doubt a lot of poor quality e-books get published. Why not let the market sort it all out instead of self-appointed gatekeepers who really don't have a very good track record. God knows, a lot of crappy books have been put out by major publishers, and a lot of good ones have been rejected. (How many turndowns did the first Harry Potter book get? If these guys are so good at sniffing out strong sellers what happened there?)

You can't argue that there is an awful lot of overhead in the old school publishing system. Last time I checked, $100 psf office space in Midtown was not a requirement to edit a book well. You also cannot argue people will buy more of something for $3.95 than for $12.95. At least you can't argue without ignoring the basics of economics. That is one of the great marketing assets of an e-book...the author can make as much per copy at a far lower price, and that lower price energizes sales.

It is easy to take pit shots at who is making real money at this. How many authors of print books make real money? You seem to suggest by implication that these economically marginal authors were offered more by the old system.

Lastly, that was a nice one-sided hatchet job on Amazon in that paper. Did some union hack pay for that? Hmmm...what other industry has a reputation for paying its editorial assistants less than a living wage? Hmmm.

J. Anne said...

Big 'ol WOOT WOOT to Konrath for just just saying it like it is. :)

fannyfae said...

@Anonymous: The other side of the logo question are those who will avoid titles because of the logo. One publisher in particular I am thinking of had to fight, and still fights a great deal of stigma because it's titles tend to be poorly researched, poorly edited and made for a specific how-to market. I had the pleasure of knowing one of their late authors who gave me some very pointed advice about why I should *never* consider going with them - and this is after they published three of her titles.

Sometimes a publisher and what it stands for can be a definite liability. Any author who wants to maximize their own profit and exposure is definitely not going to limit themselves to selling just on Amazon. They are going to go with as many other venues as well, such as Smashwords, the nook and even their own private websites.

And Joe and Barry are exceptions to the rule as far as eBook profits. But that does not mean that others are not making a decent living wage on what they publish as well. In every case, the writer is a writer first - and all that other stuff such as editing, formatting, promoting, etc. they can do themselves - or hire it out. But every one of them knows that writing every day is their job and actually *doing* the job every single day (or almost every day) is the way you make money at it. Joe never claimed this to be a get rich quick scheme. Either do it because you love it or get the hell out of the game.

It amazes me that there are still those who fail to understand this most basic concept.

Unknown said...

If you don't like the whining, wait till they enter their death throes. I predict some serious effort within 10-20 years by the Big 6 to thwart the e-pubbing movement and maintain their hold on authors.
When that fails they will decide to get into digital too, but by then, for many, it will be too late.

Anonymous said...

I'm the OP of the Walmart comment.
I agree that publishers have been screwing writers over, esp midlist authors.

What I don't agree with is that brick and mortar bookstores are useless. Many indie bookstores did a lot to promote author readings, book clubs. Owners and employees of these bookstores are genunine book lovers.

No normal small business can compete with a company that has millions for R&D, Marketing, Tech upgrades.

I have nothing to say to people who are completely ignorant and clueless about Walmart and its abuses and the way it has screwed the American landscape.

Louis Shalako said...

Hi Joe,

I was wondering if you use Kindleboards, or ever comment on Amazon's discussion threads or use the machine actively. Looking at Kindleboards, I don't have a bleeping clue what to do over there. Any advice on how to use that stuff?

Brianna Merrill said...

Baaahahahaha, oh man *wipes a tear* this post just made my day! Can't wait for the puppy powered screamobile that will be Amazon's crowning product, well right behind KDP at least ;)

Anonymous said...

Usually I don't plug my blog on other blogs, but last week I wrote one with a similar sentiment I thought you might enjoy! I compared Amazon to the Big, Bad Wolf. And my advice for Little Red?

"Alright, so the big, bad wolf was the first to the party, and has taken over the forest— for now. So trade in your hood for boxing gloves, Little Red, because training begins today."

Thanks, as always, for your insightful posts. Amazon is smart to come to you for advice.

http://www.theselfpublishingblog.com/2012/02/whos-afraid-of-big-bad-wolf-how-to-beat.html

Sarah Strohmeyer said...

So, wait...you don't like traditional publishing? Interesting. I. Did. Not. Know, That....:)

Gary Ponzo said...

I think we all want to make a living on our writing, but getting lost in this discussion are the hundreds or thousands of writers making $500 or $800 a month on their ebook royalties. These are people who would probably never sniff a traditional publishing deal, yet can still make their car payment from this terrific new opportunity.

In this months Kiplinger's, there's a half-page article on Tara Jefferson who sold 650 copies of her self-pubbed ebook and she said, "It exceeded my expectations." She made $840 and was thrilled. These are the stories which are not getting the attention they deserve because we're all searching for that game-changing royalty statement. Sometimes, it's good to exceed your expectations and be happy about it.

fannyfae said...

@Gary Ponzo: You, sir, have made one of the most salient points of all within this entire discussion. Writers are making money off of what they do sell, and most of them would never would have gotten a cursory glance with the gatekeeper system that is inherent in legacy publishing. That little bit makes the life of the writer financially better off than if they hadn't bothered for fear of the potential potential eeevollll "Amazon monopoly"!

Anonymous said...

I have nothing to say to people who are completely ignorant and clueless about Walmart and its abuses and the way it has screwed the American landscape.


This is a typical, completely unsubstantiated comment trying to make a claim without any backup. Walmart's benefits are obvious...they let people on a tight budget save a lot of money on food, clothes, etc. The criticism is based on vague societal issues and misty-eyed references to salad days gone by when everyone knew the corner grocer's name.

Allowing a poor single mother to save money on her child's shoes is a good thing. And allowing people to have access to a wider variety of reading material at a much lower cost is also a good thing.

The fact that people can buy 6 or 8 books for the costs the publishers want to charge for one is a good thing, notwithstanding some literary snob's fondness for the smell of paper, or whatever.

The fact that authors now have a better chance to build an audience is also a good thing. Just because they will not all become wealthy bestsellers is not an invalidation of that. They now have the chance to build whatever they can. As with all things, some will excel, some will do OK, some will fail.

I love bookstores, and I would generally rather browse in one than do so online (unless I am searching for something specific). But they are making their own bed too. Borders was terribly mismanaged. One of the two Barnes and Nobles near me closed, and their response to this was to trim the hours for the other one. So now it closes earlier, making it less convenient.

If they emphasized service more, and had longer hours they might do better. Maybe the model has changed. Maybe some people will go and look at books there and order them from Amazon. Sure, that is frustrating for a business, but maybe not so bad if they sell me a $5 coffee and $4 brownie in the cafe and a roll of wrapping paper - stuff where there margins are probably ten times higher.

Burying your head in the sand and wishing things wouldn't change is not a valid business strategy, and it is the old companies that are to blame when they fail, not the new innovators.

Dave Cleinman said...

I like what this post implies about other areas of life, beyond the Zon. I think we can use your words, Joe, to improve what we do on a daily basis!

And, perhaps the other marketplaces will make some real changes instead of playing at them on top of this.

Kevin Michaels said...

Great post - interesting to note that Simon & Schuster announced 4th QTR results showing a 1% decrease in sales but a "sharp increase in profits."

As they have in the past, CBS said that "strong growth in the sale of more profitable digital content was offset by lower print book sales," attributing increased profits to "lower expenses resulting from the significant increase in more profitable digital sales as a percentage of total revenues and the absence of a provision for doubtful accounts." Digital accounted for 18 percent of fourth quarter revenue for S&S.

CEO Carolyn Reidy says that "although physical sales are down overall, the physical book market feels more solid than it has for some time."

Translation: physical books ain't selling.

From my days as a corporate warrior, aside from some of the internal restructuring they are doing to offset losses, unit sale decreases yet higher profits translates into increased retail prices of physical books. They are selling less units but charging more to consumers and squeezing their book store partners on returns to increase their margins.

From my POV, it is indicative that they cannot let go of the only business model they know - they can't adapt to a changing marketplace, and as sales decrease they will continue to raise prices on both hardcover and paperback books. There will be even more pressure to print only big ticket best sellers from established authors which pushes mid-list and newbie's out in the cold. The print market will become even more dominated by a select handful of authors.

Love what Kristen lamb wrote: "we are architects of the future or we are ARTIFACTS".

Like the Tommy Lee Jones character in Under Siege said (when another character told him the "movement" was dead):
Yes, of course! Hence the name: movement. It moves a certain distance, then it stops, you see? A revolution gets its name by always coming back around in your face. ..... so welcome to the revolution.

Glad to be a part of the revolution.

Adriana said...

http://parafantasy.blogspot.com/2012/02/this-is-utterly-ridiculousi-cant-even.html

Another example of how shitty publishers can be to their authors. This woman was FIRED from writing her own books. She didn't read the contract with enough scrutiny. I'm not a fan of her books but I sympathize.

D. Nathan Hilliard said...

As an author who is just getting started, I would say that the threat of Amazon taking over the world is the last worry on my mind. Amazon is making getting into the business possible where it had used to be a forbidding prospect to even try. So as far as I'm concerned, Amazon is welcome to take over the world.

epobirs said...

Booklover, that was more than a little silly. Are you really trying to suggest there is any comparison between a warehouse job and writing in your own home or office?

Anyone can set up a web site with a Paypal jar and free book downloads. You don't even need to know any HTML, there are plenty of places that let you do it off a template. Unlike a blue collar warehouse job, any would-be writer can set up his own lemonade stand and sell his product. Amazon simply doesn't have any power over them as they do over a manual laborer.

The internet is what made Amazon but is also what allows anyone to operate their own store, however small. Good writers will make money as long as the audience has a way to reward them.

The ultimate solution to the conditions in those warehouses are not going to make for much happiness at the worker level. You know they'll roboticize the tasks as much as possible as the technology allows. Which means not even crappy jobs for those incapable of anything else.

epobirs said...

Adriana, if you're an adult who signs a contract concerning your livelihood without consulting (or being) a lawyer, you deserve whatever happens. I think I first heard of 'Work For Hire' when I was a teenager in the 70s. You shouldn't be able to graduate high school without knowing what it means.

Jen Smith said...

I love Amazon and eBooks. I thought I would never switch to reading electronically but now I love it. I especially love hearing about a book and being able to get it instantly.
http://jensmithsick.com/

Unknown said...

Booklover, what's your definition of real money? Mine is currency that you can use to purchase goods. Just take a look at the bestseller's lists. There are a lot of self-pubbed authors making a mint on kindle and there are even more making at least 4 figures every month. Sounds like real money to me.

David L. Shutter said...

The arguments to pursue traditional based on the sucesses of King, Rowling and Grisham (or their like) is, to me, pretty redundant. They're some very big oranges compared to the rest of us mortal apples in the world.

You might as well tell your kids to forget their stupid dreams of being Lawyers or Doctors and take computer science just because of how sucessful Zuckerberg, Gates and Jobs were.

Seriously, it's that silly of an argument on what path to pursue.

Marilyn Peake said...

I find it reeeeeally interesting that only a year or two ago, those working with the Big Six publishers told writers - including very talented writers with nonmainstream books - to stop whining when they got rejected, to not complain about big publishing corporations, etc., etc. Ummmmmmm, who's whining now?

Anonymous said...

@booklover: I am a nobody that you will never hear about, rejected by the Big 6 hundreds of times.

I have several titles up on Amazon, none ranked higher than 5,000 - and I have made $10k a month since last August.

We aren't all making Konrath money, but many of us are doing just fine.

Many seem to forget, while Amazon will pay me $150k in 2012, they will make $100k off of my work themselves - no smart company will pi$$ that away.

Anonymous said...

"once you start blaming, you've lost. Winners don't blame. Winners don't whine."

Dude, you really need to take a look in the mirror. Your blog is all about blaming the Big Six for everything that is wrong in publishing, and all you do is whine about how they treat you like shit.

Anonymous said...

This is just a great article. The big book publishers will be dead in five to ten years. Their slogan needs to be adapt or die.

Mike

David L. Shutter said...

Somewhat off topic, but not really:

Passive Guy's review of the new (and quickly becoming infamous) Authors Guild blog post concerning Amazon and their "predatory pricing".

Read it here if you haven't already.

From the group that's supposed to protect writers...simply un-be-lievable.

This one is begging for a Joe and Barry fisking. Just a thought.

Danilo Sergio Pallar Lemos said...

É UM PRAZER ESTAR ACESSANDO SEU BLOG, VOU SEGUI-LO.
wwwsabereducar.blogspot.com

mary said...

Interesting post, but I do not see that Amazon is on the author's side. They may be for now, but what happens when they gain a monopoly?

I was strongly pro-Amazon until two things happened:

When it comes to LENDING books, they were the last major distributor to allow it. The last. By many, many months. We got sick of patrons coming into the library and asking us, "I just got a kindle and want to borrow some library books. How can I do it?" and having to tell them, "You can't." Patron demand finally forced Amazon to concede and do what every other e-book distributor was doing. In this regard, they were not and are not innovative.

Even then, they still had a proprietary format. No other e-book reader except the kindle does.

Second, their labor practices. It seems that Amazon distribution centers are basically sweatshops.

What this boils down to is: Amazon, as a major company, does not care about books, authors, the first amendment, sharing of information and stories, or any of the many things I, as a writer and librarian, care about. They care about money. So long as we understand that when working with them, we'll be fine. But we do need to understand that. My two cents!

And, btw, I think monopolies are the enemies of innovation and also of humane labor practices. I do not want to see Amazon become a monopoly.

wannabuy said...

rnal@Alan Spade:"And you have to think about readers who don't have a Kindle. 2 American from 3. They want to read you on paper."

I do not get this comment. Ebook readers are available for notebooks, cell phones, tablets, and probably more devices...

That is one complaint about Amazon I'll never get. I know more e-book readers who started on cell phones than I do who started with e-ink.

Neil

Author Lindsay Mead said...

I think an author would be a fool to publish through Amazon. Their exclusivity contract is insane. Why would I limit myself to being able to only sell through Amazon and no one else? Amazon doesn't even allow other ereading devices to purchase their kindle books, so now I've just cut out every single fan who owns a Nook. Great. I'll sell through them, but I won't publish through them. I want my books to be available everywhere possible.

fannyfae said...

@Linday Mead: I think you are a bit confused with what you are writing. Unless you choose to publish via Amazon and you don't go with the Advantage, which only asks for exclusivity I believe for 90 days, then you can sell your eBook on Amazon or ANYWHERE you want. Nook, Smashwords, Lulu, even your own website. Not everyone goes with Amazon Advantage. I know I haven't for the books that I publish and I can put them anywhere I want.

It's Apple's latest that has you locked into exclusivity - and that is only *if* they deem your work to be worthy.

Anonymous said...

I believe Lindsay is talking about the Amazon imprints. Their ebooks are exclusive. The counter to that exclusive is the benefit of being promoted out the wazoo by the biggest bookstore in the world. I wouldn't say never myself, it should always be a matter of crunching the numbers and seeing what works best with your priorities and objectives.

CS McClellan/Catana said...

Fannymae, if you're going to correct someone, it helps to do it correctly. The program that requires exclusivity is Select, not Advantage.

JK said...

They could get *too* big -- the kind of big of big box stores that results in backlash down the line. Right now I buy a lot of stuff from Amazon, from books to dvds to clothing to some health and beauty products. I've even bought coffee and gogi berries on Amazon. I've started to wonder what will happen to them when they try to be the "everything" store. At what point could Amazon lose its innovation cache and become a digital Walmart?

James said...

So let me get this straight: calling Amazon "evil" is whining", but calling the Big 6 "evil" is courageous?

Got it. Except to me, it all sounds like a lot of bullshit, fear and earnest desires for wish fulfillment on all sides.

Nely said...

I love ya Jack! :o) Reading your blog is always a breath of fresh air. Thanks!!

fannyfae said...

I must say, "mea culpa" to Lindsay. My bad for having remembered the name of the programme incorrectly.

@Catana/Sylvie Mac: When chastising someone for such a mistake, you might want to consider according that person the courtesy of getting their name correct. The name is Fanny Fae. I have no connection to the mortgage lender that you obviously confused my name with.

wannabuy said...

I like how these threads always have fear mongering. What could be as bad as the current system for authors? Now at least EVERYONE may publish.

Alan,
What is the fuss with paper? Anyone could download a Kindle (or B&N) app for their computer, cell phone, or tablet. Fractionally over half Kindle and Nook readers I know started reading on their cell phones. A few on their laptops. The rest were able to borrow a Kindle (or Nook, or Sony, or...) and try it out first.

There is something to paper. For those who do not travel, or already own a large home, or read only one book at a time, or...

Neil

JA Konrath said...

Your blog is all about blaming the Big Six for everything that is wrong in publishing, and all you do is whine about how they treat you like shit.

My blog is about studying the publishing industry, which for over a hundred years was ruled by publishers, and taking them to task for the multitude of mistakes they are making--mistakes that I go into specific detail describing.

The Big 6 treat the majority of the writers they work with like shit, with terrible royalties being the biggest offense.

JA Konrath said...

So let me get this straight: calling Amazon "evil" is whining", but calling the Big 6 "evil" is courageous?

Not at all.

Pointing out that Amazon is good for authors and customers lays to rest the claim they are evil.

The Big 6 are harming customers with DRM, windowing, high ebook prices, and a host of other bad business practices, and they are treating writers unfairly in ways I've been painstakingly detailed for 3 years.

Poitning that out doesn't make me courageous. It makes me aware.

Sugarbeat said...

Excellent post! I'm a reader and I'm enjoying watching what is happening in the publishing world. My only complaint about Amazon is concerning their geographic limitations. I am Canadian and have friends in the Orient and we don't have access to the same selection of books and subscriptions that most Americans do. I do understand that some of it comes from contracts in already in place that must be followed. If Amazon is going to take over the world, it needs to take over the world, not just part of it :)

Karen Dales said...

I have no doubt that Amazon is the Microsoft of the e/publishing industry. As to distribution, their ebooks are only distributed through amazon, which is fine, but leaves other ebooks out of the loop. But it doesn't matter since the Kindle is beating other ereaders into submission.

As to paperbooks. Right now, and probably for the next few decades, paper books will still be produced because people still love them. Heck, I still love them. But Amazon's distribution for their Creatspace print books is through Ingram. Amazon isn't a distributor, but they are working with the world's largest one.:)

One day, a long time ago, people wondered at the viability of Amazon. Now they are winning the race.

MilodonHemi said...

I've been downloading and reading your informative blogs since last year and I agree completely with the "palpable disdain for writers" you mentioned in one post. Since I signed a wack book contract with an independant publisher in Oct. 2010 for my "first" novel" [that hasn't even been released yet and no emails answered] I've finished another novel and published it myself on Amazon Kindle Direct---Amazon answers emails,[unlike this independant I signed with] and make efforts to help the writers and answer my questions. Now I need to bone up on publicizing the book, but it's been a good process so far. By Joe Moore

MilodonHemi said...

The disdainful practices [such as ignoring emails] of traditional publishers [such as an independant I signed with in Oct.2010 for a preposterously yet-to-be-released novel] are contributing to their shrinking market share. Like an earlier blog of yours said, publishers need the content providers, not the other way around. A typical example is that I completed a second novel and published it myself on Amazon while this other book is still in limbo with the no-email-answering publisher. Amazon answers emails and helps the writer with their books.

Phantom of Pulp said...
This comment has been removed by the author.
Phantom of Pulp said...

The only thing as dire as how traditional publishers treat authors is how indie and mainstream/studio film distributors treat filmmakers. These folks are cut from the same cloth.

I love that these new options are removing the middleman -- traditionally an incompetent, lazy, narrow-thinking fool who only works hard when his job is threatened.

A very close author friend complains frequently about how his traditional publisher constantly misses marketing opportunities and moves at the pace of a geriatric snail.

Finally, after almost a hundred years, authors have options, and those options are giving them control.

Love your no-nonsense perspective.

The time for nonsense is past.

Morbideus said...

"It's easy to hate your competition, especially when the competition is kicking your ass."

I LOVE that!

Anonymous said...

"For years I've been telling publishers and booksellers how they can compete. I haven't seen any of them follow any of my suggestions."

On behalf of independent booksellers, I'd love to hear your suggestions - those affordable on their meager budgets, that is. Links please?

jenny milchman said...

I think one thing is missing from this take, and that is that some readers love print, and many readers love bookstores. Not because they charge more than Amazon, but because they do something Amazon doesn't.

I'm definitely not whining or blaming Amazon for what they do well. I say, more power to them. But I give a little cheer every time a new bookstore opens and starts to thrive (hello, Ann Patchett).

I think you're right, Joe--there's a human connection and by listening to you and Barry, et al, Amazon is making use of that.

I'm just not convinced they're the only ones to do so.

JA Konrath said...

http://jakonrath.blogspot.com/2011/05/indie-bookstores-boycott-konrath.htm

Unknown said...

Wow, an Amazon love fest. I suppose no one cares that Amazon's business practices are on par with the Wall Street banks that sold faulty mortgages to poor people and wrecked our economy. Amazon workers are paid minimum wage without rights the same as Walmart and states that are on the verge of bankruptcy are loosing tax dollars because Amazon is exploiting loop holes in internet law. http://www.thefiscaltimes.com/Columns/2011/06/08/Amazons-Tax-Evasion-Strategy-Hurts-State-Budgets.aspx#page1 Another reason why they're winning and the big 6 might lose.

Matthew Lee Adams said...

@Jave Viner I suppose no one cares that Amazon's business practices are on par with the Wall Street banks that sold faulty mortgages to poor people and wrecked our economy.

I know what you're trying to say, but that isn't a very good analogy at all.

What the banks did was to create a bubble generated on the basis of exotic instruments (bundled mortgage-backed securities and credit default swaps, among others) with extremely poor risk management involved. They relied upon models that estimated average-case scenarios and were not capable of calculating a systemic fault - which was what ended up happening.

The creation and marketing of these financial instruments trickled down and across the mortgage industry, coupled with historically low rates (which have now gone even lower due to Fed action for the economy).

So you end up with a bunch of extremely large banks tossing hot potatoes back and forth and not realizing that they're all at high risk due to extreme leveraging. Which is why massive banks toppled on both sides of the Atlantic. And of course the aftershocks rippled across the entire mortgage industry.

The people in banking who initiated all this were richly rewarded and many banks were bailed out and bonuses were preserved. People whose mortgages were underwater or going into adjusted-rate mode looked up and saw yellow liquid pouring over their heads and were told to act like it was raining.

I have never worked in the mortgage industry, but this is pretty much what happened with the whole banking and mortgage debacle. And unfortunately, as I said, it doesn't make a good analogy with Amazon.

To be honest, I'd think Barnes & Noble's rise would probably come closer to some aspects of Amazon. B&N was quite aggressive and drove many small indie stores out of business while going head-to-head and battling Borders for primacy. B&N also involved itself in all manner of expanded operations, including taking over operation of some university bookstores (with good and ill effects), etc.

Anonymous said...

Agree with Bradford. This sounds fairly amazing, but all I see are cheapie zombie apocalypse books. So it's 99 cents. It's not exactly Dickens.....

David L. Shutter said...

Don't know if anyone's still following this thread but here's some news that will stir up the Amazon haters:

"You see..they're eeeevilll!"

Link to a blurb on the article
here

I don't think the full story and details are out yet but apparently the publishing group tried pulling a fast one on Mr. Bezos.

Won't matter to the A-train haters.

Sheri Hart said...

Too bad so many indie publishers and e-book retailers are caving to PayPal's censorship attempts (Smashwords, Bookstrand, etc)

So far it's erotica in PayPal's cross-hairs, but what next?

I understand how hard it is for small businesses who rely on PayPal to process payments to fight back.

All the more reason all writers need to speak out against PayPal's censorship.

Many of the author's books PayPal is demanding be pulled for obscene or objectionable content (i.e, on-the-fringes sex) are still for sale by their own parent company EBAY.

Protest by speaking up and closing your PayPal and EBay accounts!

The Mike said...

In the past week, I had a short story published in an anthology via CreateSpace and Amazon (see my blog if you want to support some upcoming writers). I can see why Amazon is looming large on the horizon for mainstream publishers - I submitted the story in January, an editor had got back to me within a couple of weeks, and in the space of about a month it's on the virtual shelf and winging its way around the world to postboxes and Kindles.

The process is relatively painless and, compared to regular publishing, exceptionally swift. Publishing houses just cannot compete, but it seems like they don't really want to. For an editor to look at your work, you're expected to send it once and sit around for three to six months waiting on their unlikely reply. Nobody communicates like that in the real world and no writer can reasonably expect to get enough material 'out there' to make a name for themselves under that kind of model. And readers or consumers do not take kindly to sitting around waiting for months on end for a largely finished product to be released. The world has changed; publishers have to adapt or natural selection will see them off.

Unknown said...

Very well said. I had a great time reading it. I am impressed with your insights. Big thanks for sharing.

Michelle

Unknown said...

Amazon is a miracle! I'm not sure if you'll read this because it's to an old post but I just wanted to say thank you, JA Konrath. I've always wanted to be a writer. For years I have gone unpublished after being rejected by every agent I have come in contact with. It was over a year ago that I discovered your blog and became inspired. I uploaded one of my books to amazon's indie pages but unfortunately I went months without a single purchase. I felt utterly disenfranchised and decided that epubbing was not the way to go. So I tucked my tail between my legs and went back to begging the big dogs.

I wrote another book and tried to get it published over the past few months. I literally sent it out to about 150 literary agents and yet again every single one of them turned me down. I decided that was it. I returned to your blog and devoured just about every post you've written. I recently uploaded my newest book to amazon kindle through KDP earlier this week. And within the past 19 and a half hours, about 50 people downloaded my work. 50 people may not seem like much to a veteran but for me, it seems almost life changing. I went years without my work ever being read by anyone when I was at the mercy and rejection of literary agents. And now I feel so empowered. The future is looking incredibly bright and I can't wait to increase my back catalog. Thank you Amazon for the incredible opportunities and thank you JA Konrath for the insurmountable inspiration. I will forever be thankful.

Unknown said...

"It's easy to hate your competition, especially when the competition is kicking your ass."

Well said! I don't have a lengthy blog comment, I just love that you said everything that I feel but haven't formed into words. I love Amazon and all it is doing for so many people and there is nothing wrong with that!!

Sharon L Reddy said...

Joe, I've been pointing it out for twenty. That's when I began writing FOR electronic publication. I sold well for the Rocket, until it was purchased and yanked off the market. Since that happened to the month predicted and I knew how long it would be until e-readers were 'the new thing,' I wrote a lot of books for it. I wasn't at all surprised Amazon did it first. It's a good business. as long as one remembers it's a very big business...

Dystopia, utopia,
The have and have not.
Social dynamic theory
Neatly fitted to a plot.
Science fiction will be
What it was again.
Thirty years of formula,
A literary sin.

Gary Dobbs/Jack Martin said...

Just out of interest and seriously - are you on Amazon's payroll? I love Amazon, think they are a great company but recently they have been making authors remove short stories from the Kindle store that are also available for free on webzines. Discuss.

Michelle Hughes said...

Joe,

I just wanna work for Amazon 'cause there's no doubt in my mind that's where all the readers are at these days! You can look at profit levels across all boards and see a huge difference.

Michelle

Anonymous said...

We are responding to this piece to bring to your attention our

recent experience with CreateSpace and Amazon. We self-published

a nonfiction book "Shaming Justice: The Arizona State Bar and

Supreme Court" with the former this month, and the latter is distributing

it by taking orders online. In our experience these companies together

are badly gouging authors. For a book listing at $20 we are receiving less

than $8 per copy in royalties. Thought you might want to know.

Bartus Trust

Arizona

Anonymous said...

I think that amid all this cheerleading one thing is overlooked, and that is predatory behavior.
Amazon Advantage takes the same 55% discount that the distributors Ingram and Baker Taylor do. Yet it's a retailer. So how are the wholesalers supposed to live on zero margin?
And Createspace takes 60% discount for getting authors into the bookstores.
This kind of thing leads to fears that once Amazon kills the competition, they are going to stick it to everybody, because they have always been sticking it to the industry to get ahead - and getting away with it.
And is it a good thing to destroy bookstores?? I really don't think so.
But how are bookstores supposed to survive when the playing field is so uneven.
They are brick and mortar, high overhead locations, retailers trying to get by on max 40% discount, trying to compete against the giant that is getting 55 or 60% - with high volume and lower overhead.
If there were any antitrust law in this country Amazon couldn't destroy a whole industry like it is doing. But there isn't any. There's just "creative destruction."
Anyway, thanks for telling us for whom the bell tolls.

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