The idea was to get a bunch of cheap books for the Kindle to help it achieve critical mass, at the expense of driving these publishers out of business. They were a kind of disposable rocket stage for Amazon.
Deep discounts aren't the only way that Amazon feeds off its suppliers: it also lards junk-fee atop junk-fee. For every pound Amazon makes from its customers, it rakes in 45-51p in fees:
https://pluralistic.net/2023/11/29/aethelred-the-unready/#not-one-penny-for-tribute
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