Smashwords is on course to double its revenues from 2011 to 2012, according to a new Forbes article. It seems the company, which has traditionally run on relatively low margins in order to keep its prices low, sees increasing advantages from economies of scale as it continues to grow.
The Forbes article highlights just how fast Smashwords has been growing, finding a space in the ebook market despite the rampant growth of Amazon. There have been some difficult moments, such as Amazon’s launch of the exclusivity-based KDP Select program and the disagreement with Paypal earlier this year, but overall Smashwords genuinely seems to be developing fast.
One big question for Smashwords is whether it will eventually offer distribution to Amazon, but it’s possible to argue that this doesn’t really matter. With Amazon unlikely to back down in terms of its demand to be able to set ebook prices, Smashwords would have to change its own approach. It seems there’s room for both Amazon and Smashwords in the market, which can only be a good thing for authors and readers.