Rare Book Monthly

Articles - July - 2010 Issue

Amazon's Demand for "Price Parity" Has Dealers in an Uproar

Ioba-amazonletter

IOBA writes to numerous agencies requesting help overturning Amazon's price parity.


By Michael Stillman

The recent application of Amazon.com's "price parity" policy to European booksellers has resulted in a great outcry from those countries' dealers. The policy has been in effect in the U.S. for several years as part of their seller's agreement, though how widely this is understood, or how carefully obeyed and enforced, is uncertain.

"Price parity," which was recently extended to the U.K., France, and Germany, requires that sellers charge no more for their books on Amazon than they do on any other site, including their own. They can charge less on Amazon, just not more. Price parity applies to both the cost of the item, and to the total cost of the order, including shipping, rebates, and other discounts.

In explaining the reason for this requirement on their U.K. website, Amazon wrote, "Customers trust that they'll find consistently low prices and other favourable terms on Amazon.co.uk and we think this is an important step to preserve that trust." On its face, the justification is not unreasonable. Amazon wants to be known as a low-price vendor. If its listing merchants offer the same books for less elsewhere, their reputation as a low-price seller could be damaged. Customers might not be confident that they were getting a good price.

Of course, it's never quite as easy as this, and as a result many booksellers are quite unhappy. A group of English booksellers earlier petitioned that country's Office of Fair Trading contending this was harming their business. Then last month, IOBA (International Online Booksellers Association) jumped into the fray, sending letters to numerous government watchdog agencies in England and the European Union claiming Amazon's move to be "anti-competitive." Just as there is a reasonable argument to be made for Amazon's position, there is a good argument to the IOBA position as well.

IOBA argues in its letter that Amazon's charges for listing on their site "are often higher than on many other websites and often substantially higher than selling books through their own independent websites." Booksellers will have no choice but to list at prices high enough to cover Amazon's charges (15% commission plus listing fees) on less expensive sites. Says IOBA, "Amazon’s policy of forcing sellers to reflect the higher costs involved in listing items for sale on Amazon across all websites is likely to be bad for book-buyers by generally increasing the cost of books, and is likely to be particularly damaging to smaller, cheaper aggregator site competitors to Amazon’s market dominance." They go on to note, "This policy also removes the freedom from independent booksellers to set the prices that they want for books on their own independent websites and...to offer sales and other special offers to their own customers on their own websites."

From Amazon's point of view, they are simply protecting themselves from booksellers making their site look bad by charging higher prices there than they do elsewhere. From the booksellers' point of view, Amazon is using its market power to not only demand high fees, but to prevent them from selling for less on the sites that do not demand so much. Amazon's attempt to lower prices on their site, combined with high fees, may actually result in higher prices for consumers, and prevent lower cost competitors from entering the market. If less well-known sites are not even allowed to compete against Amazon for customers on price, they may have no realistic chance of competing against Amazon at all.

Rare Book Monthly

  • <b>19th Century Shop’s Catalog 170 Great Books and Photos. Please inquire for a copy.</b>
    <b>19th Century Shop:</b> Exodus 10:10 to 16:15. Complete Biblical scroll sheet in Hebrew, a Torah scroll panel. Middle East, ca. 10th or 11th century.
    <b>19th Century Shop:</b> Copernicus Refuted. (Astronomy.). Scientific manuscript of a course of studies at Collège de la Trinité, Lyon. 1660s.
    <b>19th Century Shop:</b> Israel’s War of Independence and the Early Days of the IDF. 58 photographs presented to Israel Ber, IDF officer and later convicted spy.
    <b>19th Century Shop’s Catalog 170 Great Books and Photos. Please inquire for a copy.</b>
    <b>19th Century Shop:</b> Early Unpublished Darwin letter on the races of man. Autograph Letter Signed [to Henry Denny]. Down, Kent, June 1, [1844].
    <b>19th Century Shop:</b> Classic Image of American Slavery. Kimball, M. H. <i>Emancipated Slaves</i>. New York: George Hanks, 1863.
    <b>19th Century Shop:</b> (Underground Railroad.) Scaggs, Isaac. Important Runaway Slave Poster: $500 Reward Ran away, or decoyed from the subscriber…
  • <b>Swann Auction Galleries Aug 2: Vintage Posters</b>
    <b>Swann Auction Galleries Aug 2:</b> <i>Keep Calm and Carry On</i>, designer unknown, 1939. $12,000 to $18,000.
    <b>Swann Auction Galleries Aug 2:</b> Théophile-Alexandre Steinlen, <i>Le Journal / La Traite des Blanches</i>, 1899. $3,000 to $4,000.
    <b>Swann Auction Galleries Aug 2:</b> <i>"Let Us Go Forward Together,"</i> designer unknown, 1940. $2,000 to $3,000.
    <b>Swann Auction Galleries Aug 2: Vintage Posters</b>
    <b>Swann Auction Galleries Aug 2:</b> Henri de Toulouse-Lautrec, <i>Babylone d'Allemagne</i>, 1894. $20,000 to $30,000.
    <b>Swann Auction Galleries Aug 2:</b> Frank Beatty, <i>Out of the Running</i>, 1929. $2,000 to $3,000.
    <b>Swann Auction Galleries Aug 2:</b> James Montgomery Flagg, <i>Wake Up America Day</i>, 1917. $4,000 to $6,000.
    <b>Swann Auction Galleries Aug 2: Vintage Posters</b>
    <b>Swann Auction Galleries Aug 2:</b> <i>Danté / Sim • Sala • Bim!</i>, designer unknown. $12,000 to $18,000.
    <b>Swann Auction Galleries Aug 2:</b> Alphonse Mucha, <i>[Zodiac]</i>, 1900. $12,000 to $18,000.
    <b>Swann Auction Galleries Aug 2:</b> Rick Griffin, <i>Jimi Hendrix Experience / John Mayall</i>, 1968. $8,000 to $12,000.
    <b>Swann Auction Galleries Aug 2: Vintage Posters</b>
    <b>Swann Auction Galleries Aug 2:</b> Abram Games, <i>Join the ATS</i>, 1941. $3,000 to $4,000.
    <b>Swann Auction Galleries Aug 2:</b> Aldo Mazza, <i>Torino / Esposizione Internazionale</i>, 1911. $3,000 to $4,000.
    <b>Swann Auction Galleries Aug 2:</b> Robert Motherwell, <i>Julliard School / Dedication - Lincoln Center</i>, 1969. $3,000 to $4,000
  • <b>Bonhams, inviting consignments for Sep 27:</b> Newton. <i>Philosophiae naturalis principia mathematica</i>. London, 1687.
    <b>Bonhams, inviting consignments for Sep 27:</b> Josephus. <i>De antiquitate Judaica.</i> Lubeck, 1475-76.
    <b>Bonhams, inviting consignments for Sep 27:</b> Carlerius. <i>Sporta fragmentorum, Sportula fragmentorum</i>. Brussels, 1478-79.
    <b>Bonhams, inviting consignments for Sep 27:</b> Fridolin. <i>Der Schatzbehalter</i>. Nuremberg, 1491.
    <b>Bonhams, inviting consignments for Sep 27:</b> Pinder. <i>Der beschlossen gart des rosenkrantz marie</i>. Nuremberg, 1505.
    <b>Bonhams, inviting consignments for Sep 27:</b> Isidorus Hispalensis. <i>Synonyma de Homine</i>. Nuremberg, 1470-71.
    <b>Bonhams, inviting consignments for Sep 27:</b> Durer. Sammelband including <i>Underweysung der messing</i>. Nuremberg, 1525-29.
  • <b>Booth & Williams: NO RESERVE Rare Book Auction, now through July 23, 7:15PM EDT</b>
    <b>Booth & Williams No Reserve Sale until Jul 23:</b> John Muir. <i>My First Summer in the Sierra</i>, Boston, 1911.
    <b>Booth & Williams No Reserve Sale until Jul 23:</b> Ernest Hemingway. <i>For Whom the Bell Tolls</i>, New York, 1940. First edition later printing.
    <b>Booth & Williams No Reserve Sale until Jul 23:</b> Upton Sinclair. <i>The Jungle</i>, New York, 1906. First edition.
    <b>Booth & Williams: NO RESERVE Rare Book Auction, now through July 23, 7:15PM EDT</b>
    <b>Booth & Williams No Reserve Sale until Jul 23:</b> George Orwell. <i>Nineteen Eighty-Four</i>, 1949. First American edition.
    <b>Booth & Williams No Reserve Sale until Jul 23:</b> Harper Lee. <i>To Kill a Mocking Bird</i>, 1960. Early printing.
    <b>Booth & Williams No Reserve Sale until Jul 23:</b> Richard Wright. <i>Native Son</i>, New York, 1940. First edition.
    <b>Booth & Williams: NO RESERVE Rare Book Auction, now through July 23, 7:15PM EDT</b>
    <b>Booth & Williams No Reserve Sale until Jul 23:</b> Dryden, Congreve, and others. <i>Ovid’s Art of Love</i>, London, 1764. English translation of Ovid’s work.
    <b>Booth & Williams No Reserve Sale until Jul 23:</b> S. E. Hinton. <i>The Outsiders</i>, New York, 1967. First edition.
    <b>Booth & Williams No Reserve Sale until Jul 23:</b> J. D. Salinger. <i>The Catcher in the Rye</i>, Boston, 1951. Book club edition.
    <b>Booth & Williams: NO RESERVE Rare Book Auction, now through July 23, 7:15PM EDT</b>
    <b>Booth & Williams No Reserve Sale until Jul 23:</b> Ayn Rand. <i>Atlas Shrugged</i>, New York, 1957. Early printing.
    <b>Booth & Williams No Reserve Sale until Jul 23:</b> J. D. Salinger. <i>Raise High The Roof Beam, Carpenters</i> and <i>Seymour: An Introduction</i>, Boston, 1963. First [book] edition, third state.
    <b>Booth & Williams No Reserve Sale until Jul 23:</b> Tennessee Williams. <i>Sweet Bird of Youth</i>, 1959. First edition.
  • <b>TO AKABA! T.E. Lawrence and the Arab Revolt. Books, manuscripts and pictures. On exhibition 16 to 24th July at Maggs' new premises 48 Bedford Square.</b>
    <b>TO AKABA! T.E. Lawrence and the Arab Revolt. Books, manuscripts and pictures. On exhibition 16 to 24th July at Maggs' new premises 48 Bedford Square.</b>
    <b>TO AKABA! T.E. Lawrence and the Arab Revolt. Books, manuscripts and pictures. On exhibition 16 to 24th July at Maggs' new premises 48 Bedford Square.</b>
    <b>TO AKABA! T.E. Lawrence and the Arab Revolt. Books, manuscripts and pictures. On exhibition 16 to 24th July at Maggs' new premises 48 Bedford Square.</b>
    <b>TO AKABA! T.E. Lawrence and the Arab Revolt. Books, manuscripts and pictures. On exhibition 16 to 24th July at Maggs' new premises 48 Bedford Square.</b>
    <b>TO AKABA! T.E. Lawrence and the Arab Revolt. Books, manuscripts and pictures. On exhibition 16 to 24th July at Maggs' new premises 48 Bedford Square.</b>
    <b>TO AKABA! T.E. Lawrence and the Arab Revolt. Books, manuscripts and pictures. On exhibition 16 to 24th July at Maggs' new premises 48 Bedford Square.</b>

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