Understanding Amazon KDP’s Royalty Structure in 2023
Amazon Kindle Direct Publishing (KDP) is a self-publishing platform that allows authors to publish and sell their books directly to Amazon customers. KDP offers a variety of royalty options, so authors can choose the one that best suits their needs.
In this blog post, we will discuss Amazon KDP’s royalty structure in 2023. We will cover the different royalty rates, how they are calculated, and which option is right for you.
Amazon KDP Royalty Rates
Amazon KDP offers two different royalty rates for ebooks: 70% and 35%. The 70% royalty rate is available for books that are sold in the Kindle Store in the United States, Canada, United Kingdom, Germany, France, Italy, Spain, Japan, and India. The 35% royalty rate is available for books that are sold in all other countries.
For print books, Amazon KDP offers a royalty rate of 60%. This rate is the same for all books, regardless of where they are sold.
In addition to the base royalty rates, Amazon KDP also offers a number of promotional royalty rates. These rates are higher than the standard rates and are available for books that meet certain criteria. For example, books that are enrolled in Amazon’s Kindle Unlimited program earn a 70% royalty rate on all pages read.
How Are Amazon KDP Royalties Calculated?
Amazon KDP royalties are calculated based on the list price of the book. The list price is the price that the author sets for their book. Amazon then deducts a number of fees from the list price, including a commission, taxes, and shipping costs. The remaining amount is the author’s royalty.
For ebooks, the commission is 30% of the list price. For print books, the commission is 15% of the list price. Taxes and shipping costs vary depending on the country where the book is sold.
The author’s royalty is calculated by subtracting the commission, taxes, and shipping costs from the list price. For example, if a book has a list price of $10, the author’s royalty would be $7 (10 – 30% = 7).
Which Amazon KDP Royalty Option Is Right for You?
The best Amazon KDP royalty option for you will depend on a number of factors, including your target market, your book’s price, and your sales goals.
If you are targeting a global audience, the 70% royalty rate is the best option. This rate is available for books that are sold in the Kindle Store in the United States, Canada, United Kingdom, Germany, France, Italy, Spain, Japan, and India.
If you are targeting a specific country, the 35% royalty rate may be a better option. This rate is available for books that are sold in all other countries.
If you are selling a high-priced book, the 60% royalty rate for print books may be a better option. This rate is the same for all books, regardless of where they are sold.
Ultimately, the best way to decide which Amazon KDP royalty option is right for you is to experiment and see what works best for your books.
Conclusion
Amazon KDP offers a variety of royalty options, so authors can choose the one that best suits their needs. By understanding the different royalty rates and how they are calculated, authors can make informed decisions about which option is right for them.
If you are interested in learning more about Amazon KDP’s royalty structure, please visit the following resources:
