June 15, 2010

New Amazon goose-killing program like deja-vu all over again

by

It’s happened before — but, maybe, having gotten away with such tactics has emboldened the behemoth from Seattle. As Jim Milliot and Calvin Reid — in an unusual joint byline — explain in a Publishers Weekly report:

Amazon is well known for its aggressive and creative methods for gaining additional margin by finding ways for publishers to pay for more services. The e-tailer’s newest effort, apparently aimed primarily at distributors and their publisher clients, is causing more than the usual amount of complaints, however. While other Amazon programs typically offer new services that are available for a price, the new Amazon “Levels of Service” … will take away some existing services for distributors and publishers who choose not to participate. “There is no question that access to some things will go away if you don’t step up,” one person familiar with the program said.

In fact, some publishers said a bit more than that: “Two sources called the plan ‘extortion,” say Milliot and Reid, and “no one wanted to be quoted by name for this article for fear of offending Amazon.”

So how, exactly does it work? “Under the plan, distributors/publishers that offer the best terms of sale to Amazon will get more access to more services and Amazon personnel, thereby getting more promotion. Access won’t come cheap, however, with the move from the ‘standard’ level to ‘platinum’ costing ‘multiple points,’ one source said.”

And oh yeah, there’s one other problem: “It is considered unlikely that clients at most distributors will be able to afford the top level of access.”

As one fearful (and therefore anonymous) publisher puts it, “It would be nice if the quality of book mattered rather than just what you can afford,” with respect to exposure on Amazon ….”

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

MobyLives