Really needs some work. Okay eBooks are VATable unlike books, and yes, the cost of the paper and the binding are actually a relatively small share of the final sale price; and yes you still have to pay advances, editing and page-setting costs; and obviously there are hosting and bandwidth costs associated with delivering a book - but how do they calculate these prices?
Waterstone's regularly charges more than the hardback price for an eBook which no matter how you look at it, just seems bizarre. Even when the eBook is no more than the paperback edition, it is always discounted less. And they never try to match Amazon.