March 10, 2010

Live-by-the-discount, die-by-the-discount, part II

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In response to the huge snafu wherein it mistakenly underpriced hundreds of graphic novels (charging $14.99 or less for books often priced at over $100) thereby leading to a bestseller list suddenly populated by dozens of comics and graphic novels, Amazon.com has done what it does when it screws up and people want to know what’s up: It has completely clammed up and refused to comment.

So says a Publishers Weekly report by Calvin Reid updating what Amazon has only referred to so far as a “technical glitch.” (See yesterday’s MobyLives report.) Reid says it looks like the “glitch” has been fixed, and “Amazon.com’s Top 100 Book List has returned to reality,” but Amazon apparently doesn’t want to pay the distributor for those books that it sold at the wrong price:

…. a source at Diamond Comics Distributors, the dominant distributor in the comics shop market and Amazon’s supplier, said Amazon and Diamond were in discussions over resolution of the situation. No doubt, they are also discussing who will take the economic hit if they honor some of these orders, a hit that could amount to hundreds of thousands of dollars.

Of course, Amazon reported over $9.4 billion in sales in its last quarterly report — yes, that’s billion with a “b,” and that was in one quarter alone — and it was their mistake, so one has to wonder why Diamond has to negotiate anything with them. But then one remembers Diamond wants to keep selling with Amazon, Amazon can be pretty thuggish, and, well, you can imagine where this is going to go for Diamond.

Meanwhile, a report on Bleeding Cool says some purchasers have gotten letters canceling their purchases, while others who bought multiple copies of books have been told they’re getting only one.

Dennis Johnson is the founder of MobyLives, and the co-founder and co-publisher of Melville House.

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