Understanding Amazon’s Rules – Amazon Royalties

August 15, 2012 in Articles, Royalty Payments

Amazon RoyaltiesThere is a common misconception that if you price an eBook published using Amazon’s KDP facility in the 70% range that all sales will consequently accrue a 70% royalty payment. Not true unfortunately, there are some regions in the world where no matter what price range is selected or royalty option chosen, the payment will only be 35%.

Basically the royalties paid on Kindle books depends on a few factors, if you set the price correctly you operate in the 70% royalties region. But if the price is outside the designated range for 70% you only receive 35% royalties.

For 70% royalty the book must be priced between $2.99 and $9.99 in dollars, £1.49 and £7.81 in GBP and €2.60 to €9.70 in euros.

But there are a couple of other considerations, when you adopt the 70% royalty there is a delivery charge dependent on the size of the book, this reduces the payment a little more and is slightly different for each book (because the sizes differ affecting file transfer time and consequently cost). So when you do select the 70% option, as stated above, not every country is included. Here is the list of countries where the 70% does apply, any country not listed will only pay 35%.

  • Andorra
  • Austria
  • Belgium
  • Canada
  • France
  • Germany
  • Italy
  • Liechtenstein
  • Luxembourg
  • Monaco
  • San Marino
  • Switzerland
  • Spain
  • United Kingdom (including Guernsey, Jersey and Isle of Man)
  • United States
  • Vatican City

The good news is that most of the high selling countries do support 70% royalties so the impact is not perhaps as serious as you may think. Still worth knowing however if you have decided to target a specific geographic location, especially one that only pays 35%.

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