Not all distribution is digital - in fact, the vast majority of it is not. even digital distribution, however, still involves large investments of time, equipment, maintenance and risk (*). Again, why should anyone do this for free?
And - I say as someone who has worked in three publishing companies and two bookstore chains - you are mistaken about taxation. On-shelf inventory is taxed once or twice a year, depending on where your business is based. These taxes are based on estimated retail value of inventory; sales tax is another thing entirely.
--------------------- * - Software, hardware, troubleshooting, viruses, site hacking, customer support, server issues, collection of funds, business filing, accounting, the time to maintain all the above... and lots more, besides.
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And - I say as someone who has worked in three publishing companies and two bookstore chains - you are mistaken about taxation. On-shelf inventory is taxed once or twice a year, depending on where your business is based. These taxes are based on estimated retail value of inventory; sales tax is another thing entirely.
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* - Software, hardware, troubleshooting, viruses, site hacking, customer support, server issues, collection of funds, business filing, accounting, the time to maintain all the above... and lots more, besides.