Is The Bottom Falling Out For eBook Retailers?

Diesel eBook StoreWhen Bibliocracy stopped being an ebook retail store last year, I didn’t care much since I never made money from the three ebooks I got to post for sale. When Sony closed their ebook retail store earlier this year, I shrugged my shoulders since I didn’t make much money over the last four years. But when Diesel abruptly closed their ebook retail store last month, I checked the numbers and realized that I didn’t make much money there either.

Is the bottom falling out for ebook retailers?

The short answer is yes, based on my ebook sales numbers over the last four years. Bibliocracy was an independent ebook retailer that wasn’t successful. Sony and Diesel were part of the Smashwords premium catalog, which lagged behind the Big Three—Apple, Barnes & Noble and Kobo—in sales. No surprise that these three ebook retailers have raised the white flag.

Amazon is now a distant fourth behind the Big Three for selling my ebooks. The “world’s largest market” is typically 20% or less of my annual sales. I expect that number to become smaller this year. The general trend for most Amazon authors over the last few years is declining sales. If Amazon stops selling ebooks, I wouldn’t miss them as a publisher.

The longer answer for Diesel is an antitrust lawsuit against the Big Five publishers over the agency pricing model that allow publishers to control the prices of their ebooks and prevent ebook retailers from offering discounts to compete with other ebook retailers. Diesel may have a strong case since the publishers are reluctant to grant the smaller ebook retailers the same terms that they given Amazon and Apple. As many independent bookstores have complained for years, this two-tier system makes it difficult for them to compete with the larger retailers.

As the ebook market continues to grow, it’s not unusual for the bottom of the market to shake out weak businesses. If Kobo stops selling ebooks, I’ll start worrying about the overall health of the ebook retailer market. Until then I’m going to keep on writing, publishing and selling my ebooks wherever I can.

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