Price control has been synonymous with Amazon.com, Inc. (NASDAQ:AMZN)‘s style of business. However, in a new publishing deal that was signed with Simon & Schutser, the e-commerce giant seems to be repenting its past follies. Bloomberg’s Adam Satariano and Channel Advisor CEO Scot Wingo discussed this new wave of Amazon pricing on Bloomberg.
“[…] A big element here is that agency pricing, which means that publisher to a certain extent gets to set the price. Some of the reports about what has happened is, there will be some exceptions in which Amazon.com, Inc. (NASDAQ:AMZN) will be able to discount the prices but this seems to be some thaw in what has been playing out, and I am sure a lot of authors on Hachette are anxious to see what the terms are and want to see this end […],” said Satariano.
There are two salient feature’s of Amazon’s business model, unimaginable expansion and ruthless pricing. I doubt that the company is thinking about turning over a new leaf as far as pricing is concerned. Hachette should probably not count its chickens before they are hatched. Amazon.com, Inc. (NASDAQ:AMZN) would definitely not like all its suppliers to seek new terms where they have higher margins, in light of the latest deal struck with Simon & Schutser.
Could this deal be just an attempt by Amazon.com, Inc. (NASDAQ:AMZN) to pacify its investors before it drops another bombshell on them in the form of its Earnings Release today. Satariano had a few words to say about this hell of an Earnings Release.
” […] Projections are that it’s going to be a pretty hefty loss of over $300 million and so this question over Amazon.com, Inc. (NASDAQ:AMZN) about at what point will the spending stop and to prove that they can be a profitable company […],” informed Satariano.
Amazon.com, Inc. (NASDAQ:AMZN) is down a little more than 20% this year and was trading at $312.97 before the closing bell yesterday.
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