If you own any kind of an eBook reading device, this is a site that you probably need to know about. Daily Cheap Reads has been running for a while in the US and has now opened a dedicated British outlet.
The point here is that there's nothing bargain-basement about the cheap reads. Bargains yes; bargain basement no.
I just took a look and Daily Cheap Reads is very impressive - classy design, professional-looking presentation, and a strong sense that you're getting a set of intelligent editorial picks and not just an open crap spigot of self-publication. They're not neglecting the indie market, but they are discriminating in their choices.
Recent listings include Kate Atkinson, Maeve Binchy, and Sebastian Faulks. They've found Ian Rankin at £1.49, Kazuo Ishiguro for £2.44... you could spend your days scouring the net for this stuff, but now you don't have to.