RE: BB. Isn't it an issue with the product, though? Isn't the fact that readers don't come back for more a fault in the book itself? Or do you think that since BB readers are so spoiled with tons of free or almost free books they'll almost always prefer free or cheap books, therefore being very little inclined to continue buying?
No. I would argue the problem is that BB attracts a very specific type of consumer. It doesn't promote 'book' but free and discount books. There is a difference. The readers aren't "spoiled." They are exactly the type of readers BB meant to attract. I have long complained about the fact that every...single...site that promote indie books ONLY is interested in free and cheap books with X star rating. Because these sites actually don't KNOW how to promote books. They know how to sell bargain basement products.
Think about the difference between shopping in a dollar store and shopping in a department store. Most of us have done both. When I shop in a dollar store, I will often pick up things I don't actually need because 'it's a buck.' But even if I end up liking the product, I will rarely make a special trip to the dollar store to buy it again. I might pick it up again IF I got back to the dollar store, but I don't go actively looking for it. A dollar store item would have to be EXCEPTIONAL for me to really make an effort to seek it out again.
But if I discover a new product at the supermarket or a department store and really like it, I will often make an effort to go back and get it again. The product doesn't need to be exceptional, but so long as it is good and meets my needs I'll go look for it again.
This are volumes of marketing research that explains this phenomena, but the bottom line is that on a psychological level it boils down to commodification versus branding. We tend to see "bargain discount" stuff as interchangeable commodities. The people who frequent BB don't care about YOUR WORK per se, because your work is, psychologically, no different than any other author's work. There are cases, for example, of readers even buying the same book twice simply because they didn't remember reading it because all of the books blur together to them. They are all interchangeable.
Re: Reaching customers. This is tricky. We know for sure that they're on Amazon, though.
No. Customers on Amazon are AMAZON'S customers. Not yours. Amazon is a retailer. They are a Point of Purchase, not the reason for the purchase. You do need to engage in a certain level of POP marketing to stand out in the retail landscape (which is why companies spend so much money on packaging, displays, and in store ads.) But all of that is meant to SEAL THE DEAL, not initiate it. Your customers aren't "on Amazon." They may use Amazon to make the final purchase, but that is not where they are.
My customers are fans of spec fiction and roleplaying games. They are gamer geeks. Comic book geeks. Horror geeks. LARPers. They tend to be a little more intellectual than the typical reader, because they spend a lot of time thinking about their fandoms. They write fan fiction. They draw fan art. They attend conventions and dress up as their favorite characters. To reach MY readers, I can't rely on Amazon, because these folks aren't spending a lot of time browsing Amazon looking for suggestions, though they often go to Amazon when they already know what they want and are looking for a deal.
So I do the bulk of my advertising at conventions and book fairs. I place ads in convention programs. I provide swag for door prizes. I sponsor game events. Because THOSE are my readers.
THAT is what I mean by going where your customers are. Instead of hoping they discover you on a retail site because of algorithms, you have to go to where they truly live and make them aware of you.You need to think about the TYPE of person who would be interested in your book, and then figure out where they would be found.
It isn't easy. And I am not going to pretend I am an Amazon bestseller pulling in six figures a year. I have a day job that pays my bills. But I make enough profit each month that it makes my car payment and allows me to indulge my gaming addictions (those crate boxes for ESO won't buy themselves! lol). I am profitable, and my profitability is completely independent on anything that Amazon might do with their algorithms.