Amazon KDP Royalty Rates
As an author, you have poured your heart and soul into your book, and now it's time to publish it on Amazon Kindle. With the world's largest online marketplace, Amazon offers immense opportunities for authors to reach a global audience. One of the key considerations while publishing on Amazon Kindle is understanding the different royalty options available.
When you publish through Amazon Kindle Direct Publishing (KDP), you can choose between two royalty options: the 35% royalty and the 70% royalty. Let's dive deeper into each option to help you make an informed decision for your book.
Kindle Direct Publishing royalties
Amazon KDP provides authors with the option to earn royalties at a rate of 35% or 70% based on specific criteria. The criteria for both options are different, so it's essential to understand the requirements before choosing a royalty rate.
35% Royalty Option
The 35% royalty option is available for books priced lower than $2.99 or higher than $9.99. If you wish to price your book within this range or if your book doesn't meet the requirements for the 70% option, you will earn a 35% royalty on each sale.
It's important to note that the 35% royalty option also applies to books enrolled in the Kindle Owners' Lending Library and Kindle Unlimited. When readers borrow your book through these programs, you receive a share of the global fund assigned for that month.
70% Royalty Option
The 70% royalty option provides authors with a more significant share of the revenue for their books. To qualify for the 70% royalty option, you must meet the following requirements:
- Your book must be priced between $2.99 and $9.99.
- Your book must be available in at least 70% territories covered by Amazon.
- Your book must fulfill specific file size requirements.
- Your book must not be enrolled in Kindle Owners' Lending Library or Kindle Unlimited.
By selecting the 70% royalty option, you receive a higher royalty rate on each sale. However, it's important to consider the pricing strategy for your book and the impact on sales volume when deciding on the royalty option.
Royalties on Amazon KDP
Understanding Amazon KDP's royalty rates is crucial for every author. Whether you choose the 35% or 70% option, it's essential to comprehend how royalties are calculated to set realistic expectations.
For the 35% royalty option, Amazon deducts the delivery cost when calculating royalties. The delivery cost varies depending on the file size of your book, the country where it's sold, and the delivery method chosen by the customer. Keep in mind that the delivery cost is typically minimal, but it may slightly affect your overall earnings.
With the 70% royalty option, Amazon doesn't deduct any delivery costs. However, a file size fee is applicable for books larger than 3 megabytes (MB) but smaller than 10 megabytes (MB). It's essential to optimize your book's file size to minimize this fee and maximize your royalties.
It's crucial to remember that royalties are calculated based on the book's list price, not the price at which it is sold. So, even if you choose a lower list price for promotional purposes, your royalty calculations will still be based on the list price you set during publishing.
Additionally, royalties are paid out based on sales made through Amazon's various Kindle stores worldwide. Payments are made approximately 60 days following the end of the calendar month in which the sales occurred. It's important to keep track of your sales and monitor your royalty reports within your Amazon KDP account to stay up to date with your earnings.
Conclusion
Choosing the right royalty option on Amazon KDP is an important decision for every author. Your pricing strategy, book's eligibility, and overall goals should guide your choice between the 35% and 70% royalty options.
Remember to evaluate your book's list price, the potential impact on sales volume, and the criteria for each royalty option before making a decision. Additionally, keep track of your sales and royalty reports to assess the effectiveness of your chosen royalty rate.
Publishing on Amazon Kindle through KDP opens up a world of possibilities for authors, empowering you to reach readers worldwide and share your story with the masses. Understanding the different royalty options ensures you make an informed decision that best aligns with your goals and ultimately maximizes your earnings as an author.
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