Amazon KDP Royalties and Payments: A Simple Guide

How Amazon KDP Royalties Work

When you publish through Amazon, you aren't just choosing a platform; you are choosing a business model. Your earnings depend on the format of your book, the price you set, and the specific royalty tier you select during the setup process.

Ebook Royalty Tiers: 35% vs 70%

For Kindle ebooks, you have two primary options. The 70% royalty tier is often the most attractive, but it comes with conditions. To qualify, your book must be priced within a specific range (usually £1.99 to £9.99) and you must pay a small 'delivery fee' based on the file size of your ebook. The 35% tier is available for books priced lower or higher than that range and does not incur delivery fees.

Paperback and Hardcover Royalties

Print books work differently because of the physical costs involved. For paperbacks, Amazon offers a fixed 60% royalty rate. However, this is not 60% of the total price. Instead, it is 60% of the list price, minus the actual cost of printing the book. Printing costs vary depending on page count, ink type, and the Amazon marketplace where the book is sold.

Common Mistakes with KDP Pricing

Many first-time authors set their price too high, thinking it will lead to higher royalties. In reality, this often pushes the book out of the 70% ebook tier or makes it uncompetitive in the market. Another common error is ignoring the 'Expanded Distribution' option for paperbacks; while this allows your book to be sold by other retailers, the royalty rate drops to 40%.

How to Track Your Earnings

Amazon provides a 'Reports' dashboard where you can see your sales in real-time. It is important to note that 'Royalty' is what you earned, while 'Net Sales' is the total number of copies sold. Payments are usually disbursed 60 days after the end of the month. For example, royalties earned in January are typically paid at the end of March.

How There's a Book in Everyone helps

Setting up your financial details and choosing the right price can be daunting. Our publishing support tools help you navigate the technical side of kdp, ensuring your metadata is correct and your formatting meets the standards required for both digital and print versions. By using our book planning features, you can ensure your content is structured to keep file sizes low, which helps maximise your net earnings on the 70% royalty tier.

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