Random House will adopt an agency pricing model as of March 1st.

The publisher issued this statement late this afternoon: “Going forward, Random House will set consumer prices for the e‐books we publish, and we will provide retailers with a commission for each sale.  There are no changes to our terms of sale for physical books. The agency model guarantees a higher margin for retailers than did our previous sales terms. We are making this change both as an investment in the successful digital transition of our existing partners and in order to give us the opportunity to forge new retail relationships.”

GalleyCat has more: “The American Booksellers Association immediately issued a statement supporting the move. The new price model for Random House books will also help 200 ABA booksellers sell Google eBooks through their websites. ABA CEO Oren Teicher had this statement: ‘We have believed from the beginning that the agency model is in the best interest of not only the book industry, but the consuming public as well … We appreciate the careful and thoughtful deliberation Random House has brought to this issue, and applaud their decision to adopt agency pricing.’”