Amazon’s experiment with lower priced ebooks is impacting the online retailer’s bestseller list and might be influencing Avon’s decision to discount about 60 of its titles as well.

Almost one-third of the books in Amazon’s top 100 are part of the company’s Kindle Sunshine Deals.

According to paidcontent.org, about 80 percent – 24 books – were not Kindle bestsellers before prices were slashed.

The two-week promotion includes lower pricing on about 650 ebooks. The prices range from $0.99 to $2.99. The Sunshine Deals all come from small- to mid-sized publishers like Candlewick, Bloomsbury and Sourcebooks.

The apparent enthusiasm for discounted titles is in keeping with a recent survey which found that the heaviest buyers of ebooks are significantly influenced by low prices.

My critique partner is one of those people. She’s purchased so many of the lower-priced ebooks in the last couple of days, that her credit card company’s fraud department called to make sure her card hadn’t been stolen. I guess they thought they had a bargain book thief on their hands?     

Right now the major publishers set their own prices and pay Amazon a commission. The success of Sunshine Deals could influence them to lower prices. Avon might already be convinced. The publisher tweets that it will slash prices on about 60 of its titles.

On Twitter and Facebook, Avon announced its “Summer Sale,” with titles available for $1.99 and $2.99. Sophie Jordan’s “Wicked Nights with a Lover,” (above right) is one of the reduced titles. It is now $2.99.

I love Jordan so, of course, I bought it. In fact, I purchased so many books at Avon’s summer sale that Amazon had to remind me that I had already purchased one that I tried to buy.

If this trend of reducing ebook prices continues, I foresee big trouble ahead for me!   

We should have seen this coming. Amazon plans to publish its own line of romance books.

According to the Wall Street Journal, the imprint will be called Montlake Romance and will publish both ebooks, tree-books and audio books.

Reporter Jeffrey Trachtenberg reports the online giant will eventually publish other genres as well, including thrillers, mystery and science fiction.

Montlake Romance is expected to launch in the fall with “The Other Guy’s Bride,” an original new work from New York Times bestselling author Connie Brockway.

“Romance is one of our biggest and fastest growing categories, particularly among Kindle customers, so we can’t wait to make ‘The Other Guy’s Bride’ and other compelling titles available to romance fans around the world,” Amazon Publishing Vice President Jeff Belle said in an Amazon press release. 

Montlake is named for a Seattle neighborhood. It will publish a broad range of titles in romance sub-genres, including romantic suspense, contemporary and historic romance novels, as well as fantasy and paranormal.

Montlake is the fourth imprint from Amazon Publishing. The others are AmazonEncore, AmazonCrossing and Powered by Amazon.

Publishers Weekly reports agents are keeping an eye on this latest development, no doubt to determine whether the online retailer will be a viable a place for their books.

Given Amazon’s amazing reach and its already incredible record selling ebooks – especially self-published ebooks not associated with traditional publishers – Montlake Romance looks like a winner to me.