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International Kindle users: here's how Amazon is screwing you
I am the proud owner of a brand-spanking-new WiFi-only Kindle. The coveted device is currently en route, and I can't wait to be reading off its crisp E-Ink screen in all of its greyscale glory.
Since I'm so anxious to start using it, I decided to get a head start on building up my electronic library. I decided to start with the classics – for example, Moby Dick. Yes, I know it's available for free online, but this edition is typeset for the Kindle so I figured it must be worth the modest sum Amazon asks for it ($2.95, as you see in the screenshot above).
When I sent the link to my friend, who has an Amazon account with a Canadian billing address, we were amazed to discover that Amazon list the same exact item at $0.95 when she's looking at it.
This two-dollar difference holds across the boards – for all Kindle titles. It is most noticeable on the cheap ones (for Moby Dick, it's actually a 200% markup!), but it's there also for the more expensive ones.
Next to the jacked-up price, it says "International shipping included". In plain English, this means "roaming charges for 3G". Okay ... but:
1) Amazon constantly touts its 3G kindle as "Free 3G" – here, it's right in the product name – Kindle 3G Wireless Reading Device, Free 3G + Wi-Fi, 6" Display, Graphite, 3G Works Globally - Latest Generation!
2) I bought a WiFi-only device. So even if international 3G users do have to pay some sort of a roaming charge (which is very underhanded in itself), surely there should no be such charge for WiFi-only users!
Thinking this must be some mistake, I called Amazon up (Thanks, GetHuman.com).
The first service rep I got gave me an optimistic prediction – she said they could probably fix this, and she's putting me through to the Kindle department. Great.
That's where the "nice" part of the call ended, pretty much. Upon holding for another five minutes, I finally got to the Kindle department. There, the rep told me that the price mark-up is due to roaming charges. I patiently explained that my device is technically incapable of incurring any roaming charges, since it's WiFi only.
The rep said, "yes, I understand it is WiFi only, but there are roaming charges because AT&T is the service provider". Upon which I proceeded to explain yet again that I do not have a 3G chip in my device, physically. This intelligent exchange went on for a few minutes, until I finally asked to speak to her manager.
Upon getting the team leader, he basically told me the same thing. I would be required to pay for a roaming charge, even though Amazon advertises its 3G as free and that my device is WiFi only.
I then emailed them to kindle-feedback@amazon.com, and got the same exact reply. I am attaching the complete exchange below, just so you see how much Amazon (doesn't) care about this at the moment.
Bottom line: International Kindle users, caveat emptor. Amazon is basically charging you for services you're not using, don't want to use, and explicitly opted out of, and it can come to a 200% markup for some books. Way to go, Amazon!
Email exchange follows:
-- Original message: --
Hello,
I have recently purchased a WiFi-only Kindle.
I am located in Israel, and was amazed to discover all Kindle titles cost $2.00 extra for my account, as compared with an account that has a Canadian billing address.
Upon calling Amazon, I discovered that this is due to 3G roaming charges. That would make sense, only my Kindle does not support 3G at all (It's the WiFi-only model, as I said).
Thus, Amazon is effectively charging me $2.00 extra per each book, for service it is not delivering (and which I explicitly opted out from, by ordering a WiFi-only device).
Will this be remedied? If so, when?
I would appreciate a prompt response as I intend to cover this for AOL's Download Squad within the coming week, and would like to have a complete picture.
Best regards, Erez Zukerman, DownloadSquad.com
Hello, Thanks for writing about the pricing of Kindle content for International Customers.
All items available in the Kindle Store are listed in U.S. dollars (USD), and the availability and pricing of titles from the Kindle Store varies by your home country or region.
Availability and pricing of titles from the Kindle Store varies by your country or region. If you're browsing in the Kindle Store and the country or region displayed doesn't match your actual home country or region, you may see a different price during checkout that is specific to your home country or region.
You'll also find helpful information on our Using Kindle If You Live Outside the United States Help page (http://www.amazon.com/kindleinternationalsupport).
Customer feedback like yours helps us continue to improve the service we provide, and we're glad you took time to write to us. The Kindle Team will carefully review your comments.
I hope this information helps. We look forward to seeing you again soon.
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Please note: this e-mail was sent from an address that cannot accept incoming e-mail.
To contact us about an unrelated issue, please visit the Help section of our web site.
Best regards,
Aditya M Amazon.com Your feedback is helping us build Earth's Most Customer-Centric Company. http://www.amazon.com/your-account
Comments
41
Subscribe to commentsjfjbAug 30th 2010 11:10AM
do the words caca, pipi, tall and list mean anything to anyone anymore?
WinchesterAug 30th 2010 11:27AM
While i agree the difference in pricing is stupid, i think you are barking up the wrong tree.
It is probably some exclusivity deal between Amazon and AT&T (and other local carriers) that has to do with transmission of data from the Amazon servers to an internet trunk across international lines in the form of business taxes.
My point is you should be complaining to AT&T if you want to affect change in the system. I'm basing this by reading in between the lines of the stock answers Amazon gave you.
AdalanAug 30th 2010 11:29AM
Winchester, I think you are missing that the all WIFI devices have nothing to do with ATT. The responses that he got were from uneducated folks at Amazon that don't understand the difference between 3G and Wife.
Taylor. Yes, Taylor.Aug 30th 2010 4:16PM
The difference between 3G and Wife is that sometimes my 3G does what I want it to...
;)
-Taylor
rokicAug 30th 2010 11:32AM
It seems that this has something to do with geographical regions. My billing address is in Croatia and the same book costs $3,39.
Nathan ThomasAug 30th 2010 11:36AM
its like the 4g fee for the evo
no 4g here but im charged for it
kyleAug 31st 2010 12:55AM
until amazon gets their crap together, fight back: demonoid is an excellent source of ebooks. kindle is a loss leader, amazon needs you to buy books for the kindle to be profitable. don't buy books, they'll change their ways pretty quickly.
Daniel BloisAug 30th 2010 11:56AM
You may be missing something. People need to factor in how much it costs Amazon to do business within that country. I am not saying it is more but in the United States they have economies of scale that is probably not true in other countries and therefore it may be more overhead or stricter regulations that make it more expensive - and any company passes the costs on to its customers.
no kindleAug 30th 2010 11:49AM
Terrible, I will not buying any Kindle e-book. Is there a place to check e-book price differences between Amazon region?
Benjamin RiesAug 30th 2010 11:55AM
You are assuming that international corporations have to actually rationalize their pricing across different countries based on a value-added breakdown.
They don't, and the price difference in, say, identical laptops at Best Buy Canada vs. Best Buy USA is far greater than $2, even after you do the exchange rate. Taxes, tariffs, regulatory differences, blah blah...
The best explanation is that Amazon has identified a less competitive market for e-books in Israel: a market that will bear a higher price than it would in the US.
Erez ZukermanAug 30th 2010 12:40PM
You say:
"the price difference in, say, identical laptops at Best Buy Canada vs. Best Buy USA is far greater than $2, even after you do the exchange rate. Taxes, tariffs, regulatory differences, blah blah..."
_Exactly_ -- the price differences are usually caused by external forces, third parties that add all sorts of costs (like AT&T's roaming charge -- that's a part of life, and that's not my beef here).
This is not the case here, with WiFi-only. This is just Amazon discriminating against customers with _no_ commercial reason to do so whatsoever.
RebeccaAug 31st 2010 3:11AM
Tell me, what's the difference of cost (to Amazon) between a byte sent to the US and a bit sent to Croatia?
Do they pay for the infrastructure from origin to destiny?
Riddle me that, please.
WinchesterAug 30th 2010 12:12PM
@ Adalan - you missed my point. The chain of data transmission is such:
Company Server (Amazon) -> Point of Transmission (in) -> ISP (US) -> Internet Trunk/Backbone -> ISP (other country) -> Point of Transmission (out) -> User (you).
In this case Wifi & 3G are 2 different types of PoT (out); ie. the method the user (you) gets the data from (whatever) ISP.
My point is that ISPs get charged international business tax at the Trunk/Backbone level when routing data to other countries. AT&T is probably charging Amazon a fee to send data over international lines and Amazon is passing the cost on to the consumer. Ergo, complaining to Amazon is useless since they are not the ones originating the fees.
Taylor. Yes, Taylor.Aug 30th 2010 4:20PM
If I can send an e-mail for free to someone in Israel, Amazon can send a digital book for free to someone in Israel.
If there is some weird international data transfer tax (uhh, there isn't), then it would still have to be a hell of a lot less than the $2 markup amazon is charging or e-mail companies would go broke in a day.
Amazon is gouging customers. And yes, they *can* do it, but it sucks, and people still have a right to complain about getting treated poorly, even if its not actually illegal.
-Taylor
RichardAug 30th 2010 1:13PM
@Winchester I think you're over thinking this. A company's ISP doesn't charge them more because a bit might be going overseas. The company is charged the same for each bit it puts on the internet, regardless of the bit's destination.
For 3G the bit had to pass through a cellular provider and that charge varies by country, but for Wi-Fi there is no such charge, it is all just bits on the internet.
ragtagAug 30th 2010 1:24PM
This has nothing to do with bandwidth. E-books are tiny. It would cost you less than US$2 in data transfer rate to download it over a satellite phone to the North Pole.
It's just typical pricing in Europe. A computer game that costs US$50 in the US, will generally cost around 500NOK here in Norway, which is around US$80. It doesn't matter if it's localized or not, they just add to the price. Same goes for more or less everything, computers, books, dvd's etc.
JeebusSep 3rd 2010 6:59PM
That's a 28% increase in manufacturer's price. Some of that may be due to shipping and maybe localization features?
AnvarAug 30th 2010 1:24PM
This is crap, just ordered my Kindle yesterday. Since I live in Europe I have the same problem. I'm going to rethink my decision and maybe cancel my order.
A good tip: The Kindle is good for a 30day full money return, see the amazon website
matanikoAug 30th 2010 1:48PM
This has nothing to do with roaming charges, the content is priced differently for other countries this is due to publishing and distribution deals. While the service reps are probably either misinformed or not technical, a publisher may set prices for it's products differently depends on territory.
Erez ZukermanAug 30th 2010 4:09PM
Publishing or distribution deals would be a valid reason, if only it was not for public-domain works like Moby Dick. Amazon has nobody else to pay in this case -- it's just Amazon jacking up the price for _nothing_.
No licensing/distribution is required for public domain works by Amazon.