Suddenly, Amazon Starts Competing With Its Biggest Suppliers

Jeff Bezos

[credit provider=”Jeff Bezos from Steve Jurvetson via Flickr” url=””]

Amazon is working hard to become an e-book publisher, and thereby compete with the established publishers, who also happen to be some of its biggest suppliers, TechFlash writes.Amazon’s Kindle, both as a device and a platform, are runaway successes, and they’re clearly the future of the book. And Amazon as publisher has always been at the heart of the Kindle platform, where anyone can self-publish and sell Kindle books, with Amazon taking a cut.

But now Amazon is going beyond that, hiring a top publishing executive and starting an office in New York, and going aggressively after best-selling authors. 

Amazon is announcing imprints for books under a variety of verticals like young adult fiction, business and general non-fiction, often with best-selling authors. 

This is a risky move for Amazon, because its paper book retailing business is huge and so it’s alienating important suppliers, but it’s the right move for the following reasons:

  • It’s a huge opportunity;
  • Publishers are going to hate Amazon for doing Kindle no matter what Amazon does;
  • Most importantly, at this point the publishers need Amazon more than Amazon needs the publishers. If publishers stop letting Amazon selling their books, they’ll suffer more than Amazon. 

Good move, Jeff Bezos.

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