Just a day after online retail company Amazon ceased the selling of e-books by Macmillan; it has surrendered to the publishing house's demand of selling its e-books on its sites with raised prices.

The online company which gets books at 50% of the cover price from Macmillan had earlier said that the company is forcing it to sell its e-books at a "needlessly high price." In its latest move, Amazon has agreed to sell books from Macmillan at a price which the publisher decides.      The whole conflict began when Macmillan along with other book publishers proposed new terms for pricing their books and in turn asked the online retailer to increase the prices of e-books. To this Amazon refused, citing its disagreement to the raised prices as the reason. This is not the first time that such an issue has been raised against Amazon, other publishers too have shown their unhappiness and criticized it for charging merely $9.99 for best seller books on its Kindle e-reader.

The publishers want more control over the pricing model. As per the agency model, the publisher gets 70% of the total price which is set by them while the retailer gets the other 30%.