Ebook Royalty Options On Amazon’s KDP

If you are thinking about publishing your book on Amazon’s KDP platform, you’ll no doubt be wondering how you’ll get paid.

The royalty system on KDP is relatively straightforward, and authors who use this platform can select between two different royalty options for every book that they publish – the 35% royalty option and the 70% royalty option.

Any publisher, author, or other rights holder can choose the option to receive 70% royalties on all sales for any titles that they submit to the KDP platform and make available for purchase there. This can be done on the Enter Pricing Information help page.

However, it is essential to note that not all books are eligible for this option, and there is a list of requirements that the book must meet in order to satisfy the conditions. These are:

The author or publisher-supplied list price must be in accordance with the list price requirements.
The list price has to be 20% below the list price on Amazon (as a minimum) for the actual book.
Any books submitted via the platform must be made available for sale in every geographical area in which the author or publisher has rights.
The book must also be enrolled in KDP Select if the author or rights holder wishes to be eligible for 70% royalties on sales to buyers in Brazil, Japan, Mexico, and India.

The only condition for the 35% royalty rate is that the book meets the list price requirements. For those who need more information, the Pricing Page and Terms and Conditions can offer more in-depth details of how the royalty system works.

Calculating royalties

The 35% royalty option is paid out to rights holders as 35% of each sale minus VAT for every unit sold.

The 70% royalty option is paid out to rights holders as 70% of each sale minus VAT and delivery costs for each unit sold within the 70% territories, and 35% for any sales made to customers residing outside these territories.

It is possible for Amazon to sell your book below the listed price to ensure they price match and third-party sellers. If this is the case, rights holders will receive 70% of the sale price for each unit sold to customers in the 70% territories, less delivery costs, and VAT, if applicable.

Please note that authors do not need to reside in a territory eligible for 70% royalties to receive the 70% royalty option, and this option is available for in-copyright works only.

Understanding your royalty options with Amazon before you publish is always a good idea, so make sure you consider your options and select the best one for you to ensure you get the maximum royalty available each time your book is sold.

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