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>Swann Auction Galleries, Mar 7:</b> Miguel de Cervantes Saavedra, <i>El Ingenioso Hildalgo Don Quixote de la Mancha . . . Nueva Edición,</i> first Ibarra edition, Madrid, 1780. $8,000 to $12,000.
    <b>Swann Auction Galleries, Mar 7:</b> Illuminated Prayer Book in Latin and French, France, 1530-40s. $20,000 to $30,000.
    <b>Swann Auction Galleries, Mar 7:</b> Illuminated Book of Hours in Latin, France, mid-15th century. $15,000 to $20,000.
    <b>Swann Auction Galleries, Mar 7:</b><br><i>Die Ernsthaffte Christenpflicht,</i> earliest known edition of the first complete Mennonite prayer book, 1708. $300 to $500.
    <b>Swann Auction Galleries, Mar 7:</b> Georg Agricola, <i>De ortu & causis subterraneorum Lib V.,</i> first edition, Basel, 1546. $6,000 to $9,000.
    <b>Swann Auction Galleries, Mar 7:</b> Frederick Ruysch, <i>Icon durae matris in concava [convexa] superficie visae,</i> with 2 mezzotints by Jan Ladmiral, first edition, Amsterdam, 1737. $4,000 to $6,000.
    <b>Swann Auction Galleries, Mar 7:</b> Wilhelm Conrad Röntgen, <i>Eine Neue Art von Strahlen,</i> Würzburg, 1895. $3,000 to $5,000.
    <b>Swann Auction Galleries, Mar 7:</b> Pietro Carrera, <i>Il Gioco de gli Scacchi,</i> first edition, Militello, 1617. $4,000 to $6,000.
    <b>Swann Auction Galleries, Mar 7:</b> William Lithgow, <i>The Totall Discourse, of the Rare Adventures</i> [etc.], London, 1632. $2,000 to $3,000.
    <b>Swann Auction Galleries, Mar 7:</b> Michel de Nostradamus, <i>The True Prophecies or Prognostications,</i> first complete edition in English, London, 1672. $2,500 to $3,500.
    <b>Swann Auction Galleries, Mar 7:</b> Pseudo-Methodius, <i>De revelatione facta . . . beato Methodio,</i> Basel, 1504. $2,500 to $3,500.
    <b>Swann Auction Galleries, Mar 7:</b> Hrabanus Maurus, <i>De laudibus sancte crucis opus,</i> Pforzheim, 1503. $1,000 to $2,000.
  • <b>Chiswick Auctions: Autographs & Memorabilia. February 28, 2019</b>
    <b>Chiswick Auctions, Feb 28:</b> Autograph album featuring signatures by prominent actors, politicians, musicians and authors, including Rudolph Valentino. £1,000 to £1,500
    <b>Chiswick Auctions, Feb 28:</b> An extremely rare working radio script for Crazy People No 29, the first series of <i>The Goon Show.</i> £600 to £800
    <b>Chiswick Auctions, Feb 28:</b> Manuscript prayer book, in German. 8vo, 1755 £800 to £1,200
    <b>Chiswick Auctions, Feb 28:</b> Italian Manuscript on Geometry, with diagrams, 18th century. £500 to £700
    <b>Chiswick Auctions: Ornithology, Zoology & Voyages. February 27, 2019</b>
    <b>Chiswick Auctions, Feb 27:</b> Thorburn (Archibald). Sparrowhawk, original watercolour & gouache, signed & dated lower right, 1917. £1,500 to £2,000
    <b>Chiswick Auctions, Feb 27:</b> Burton (Sir Richard Francis). <i>Personal Narrative of a Pilgrimage to El-Medinah and Meccah.</i> 3 vol., FIRST EDITION, 1855-56. £1,000 to £1,500
    <b>Chiswick Auctions, Feb 27:</b> [Mount (Richard) & Page (Thomas)]. <i>The English Pilot. Describing the Sea-Coasts…</i> 31 engraved maps, W. & J. Mount, T. Page, 1756 £4000 to £6000
    <b>Chiswick Auctions: Ornithology, Zoology & Voyages. February 27, 2019</b>
    <b>Chiswick Auctions, Feb 27:</b> D’apres De Mannevillette (Jean-Baptiste Nicolas Denis). <i>Le Neptune Oriental.</i> Paris & Brest, [1775 – 1781]. £10,000 to £15,000
    <b>Chiswick Auctions, Feb 27:</b> Loring (Josiah). Terrestrial Globe Containing all the Late Discoveries and Geographical Improvements. Boston, Gilman Joslin, 1846, £800 to £1,200
    <b>Chiswick Auctions, Feb 27:</b> Shelley (G. E., Capt.). <i>A Monograph of the Nectariniidae, or Family of Sun-birds,</i> FIRST EDITION, by the Author, 1876-80. £4,000 to £6,000
  • <b>Bonhams: Treasures from the Eric C. Caren Collection: How History Unfolds on Paper, Part VII (Online). March 6-14, 2019</b>
    <b>Bonhams, Mar 6-14:</b> Albert Einstein A remarkable letter on God in English, one of his most eloquent and quoted, 1 p, July 2, 1945. $100,000 to $150,000.
    <b>Bonhams, Mar 6-14:</b> Benjamin Lincoln's commission as Major General in the Continental Army, February 19th, 1777. $60,000 to $90,000.
    <b>Bonhams, Mar 6-14:</b> Broadside. A Poem Upon the Bloody Engagement That Was Fought on Bunker's-Hill. 1775. $15,000 to $25,000.
    <b>Bonhams, Mar 6-14:</b> Early, full printing of the Star-Spangled Banner in The Yankee, October 7, 1814. $8,000 to $12,000.
    <b>Bonhams, Mar 6-14:</b> Paul Revere. Engraving, “The Boston Massacre Perpetrated on March 5, 1770," in <i>Massachusett's Calendar 1772.</i> $8,000 to $12,000.
    <b>Bonhams: Treasures from the Eric C. Caren Collection: How History Unfolds on Paper, Part VII (Online). March 6-14, 2019</b>
    <b>Bonhams, Mar 6-14:</b> Earliest known newspaper coverage of Babe Ruth, "a St Mary's schoolboy," Baltimore, April 4, 1914. $6,000 to $9,000
    <b>Bonhams, Mar 6-14:</b> Franklin, Benjamin. <i>The Independent Whig.</i> First Magazine Published in America, Philadelphia: Keimer, 1723-4. $15,000 to $20,000
    <b>Bonhams, Mar 6-14:</b> Smith, Joseph. <i>The Book of Mormon.</i> Palmyra: Printed by E.B. Grandin for the Author, 1830. First printing. $40,000 to $60,000
    <b>Bonhams, Mar 6-14:</b> Last Words of Joseph Smith. Autograph Letter Signed from a Mormon disciple, conveying a contemporary account of the Prophet's final words, Nauvoo, July 27, 1844. $10,000 to $15,000
    <b>Bonhams, Mar 6-14:</b> John Brown's Body. Autograph Letter Signed from the daughter of John Brown attempting to arrange the return of her father's body, North Elba, Essex Co, NY, November 29, 1859. $4,000 to $6,000
    <b>Bonhams, Mar 6-14:</b> Powell Expedition. Autograph diary of Rhodes C. Allen kept during the Powell Expedition of 1868, June 29, 1868 - November 16, 1868. $20,000 to $40,000
  • <b>Bonhams, Mar 12:</b> Walt Whitman. <i>Leaves of Grass.</i> First edition, first issue, SIGNED in block letters by Whitman. 1855. $200,000 to $300,000
    <b>Bonhams, Mar 12:</b> Isaac Newton's copy of John Greave's <i>Pyramidographia,</i> London, 1646. $50,000 to $70,000
    <b>Bonhams, Mar 12:</b> Colonel John Mosby. Robert E. Lee's autograph letter to Samuel Cooper reporting on Mosby's exploits, with Cooper's autograph note ordering his appointment to Major.
    <b>Bonhams, Mar 12:</b> Gyula Halasz Brassai. Large archive of autograph and typed letters, over 260, to his family including his wife Gilberte, 1947-1978. $40,000 to $60,000
    <b>Bonhams, Mar 12:</b> Archive of drawings and letters from Harper Lee to Charles Carruth, including an inscribed first edition of <i>To Kill a Mockingbird.</i> $20,000 to $30,000
    <b>Bonhams, Mar 11:</b> VESALIUS, ANDREAS. 1514-1564. <i>De humani corporis fabrica libri septem.</i> Basel: Johannes Oporinus, June 1543. $300,000 to $500,000
    <b>Bonhams, Mar 11:</b> HARVEY, WILLIAM. 1578-1657. <i>De motu cordis & sanguinis in animalibus Anatomica Exercitatio.</i> Leiden: Joannis Maire, 1639. $25,000 to $35,000
    <b>Bonhams, Mar 11:</b> BERENGARIO DA CARPI, GIACOMO. 1460-1530. <i>Isagogae breves perlucide ac uberrimae in Anatomiam humani corporis.</i> Bologna: Benedictus Hectoris, 15 July 1523. $15,000 to $25,000
    <b>Bonhams NY, Mar 11:</b> FRANKLIN, BENJAMIN. 1706-1790. <i>Experiments and Observations on Electricity, made at Philadelphia in America…</i> London, 1769. $10,000 to $15,000
    <b>Bonhams NY, Mar 11:</b> BENIVIENI, ANTONIO. 1443-1502. <i>De abditis nonnullis ac mirandis morborum et sanationum causis.</i>Florence: Filippo Giunta, 1507. $8,000 to $12,000

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