If you are paying someone $7/hour who can process 20 books an hour, and you make $1.00/book ($4-amazon fees and postage), you're not running a loss-leader, you're running a low-cost, efficient operation that a small mom-and-pop business can't compete with. Welcome to the new world. That's the same complaint the grocers who had a counter and would take the list from the customer and pull the item from the shelves said when the supermarkets moved in. They don't list big, expensive books for 1 cent - they are mostly paperbacks or smallish hardbacks. And they sell hundreds of thousands, millions of books that they buy in bulk for pennies.
I only sell books that will sell for at least $15, which means I sell only a few books a year. I can't compete with the Big Boys, and I'm not counting on my Amazon business to pay my mortgage.
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