Amazon is a powerful marketplace that continues to dominate print and eBook sales with around $28 billion annually in global book sales. The platform accounts for over 40% of print book sales and more than 67% of eBook sales in the United States. In the United Kingdom, Amazon accounts for almost 50% of print book sales and 88% of eBook sales.
There is no question that authors wanting to reach a global readership should consider using Amazon as a part of their book distribution strategy. Whether or not they use the retailer’s self-publishing platform, Amazon Kindle Direct Publishing (KDP), will depend on individual goals and chosen publishing path. When utilizing Amazon KDP to self-publish a book, authors have the option of signing up for the platform’s “Select” program, which provides additional benefits and incentives in exchange for exclusivity.
Kindle Direct Publishing is Amazon’s do-it-yourself publishing platform where authors upload all book files and related metadata. The platform allows authors to publish paperback, hardcover, and eBook formats and control everything from cover design to genre categories and pricing. Rather than printing thousands of copies upfront, Amazon KDP utilizes print-on-demand (POD) where paperback and hardcover books are digitally printed when ordered and are shipped directly to the customer.
Through Amazon KDP, authors earn royalties on each book sale which are calculated based on the list price minus any applicable printing fees, value-added tax, and delivery fees. Print books—both paperback and hardcover—priced at $9.99 or higher earn a 60% royalty rate, while books priced at $9.98 or below earn a 50% royalty rate and are calculated as follows:
(Royalty rate x list price) – printing cost = royalty earned on a sale
Authors can choose the “expanded distribution” option for the paperback version of their book which broadens its availability outside of Amazon through their distribution partners, but lowers the royalty rate to 40%.
For eBooks, Amazon offers two royalty rates: 35% and 70%. The 35% rate is calculated as follows:
Royalty rate x (List price – applicable VAT) = royalty earned on sale
The 70% rate requires authors to cover the digital file delivery fee and is calculated as follows:
Royalty rate x (List price – applicable VAT – file delivery fee (typically around $0.15 per MB)) = royalty earned on sale
In addition, to earn the 70% rate a book must meet pricing, territory, and content rules. EBooks must be priced between $2.99 - $12.99 to be eligible. If you have a discounted book price that is under $2.99, the book will receive the 35% royalty rate. If you have a book that is priced higher than $12.99, it is likely a larger or more complex digital file with images, so the delivery fee will be high, making the 35% royalty rate more profitable.
For audiobooks (produced through ACX/Audible), authors can earn 20% to 50% of the audiobook's list price or net value, depending on their distribution choice and whether they partner with a narrator.
The standard Amazon KDP program does not require exclusivity, meaning authors can sell their books through other distribution channels while also selling on Amazon. This is a great option for authors who want to self-publish and reach readers across multiple channels and retailers.
While Amazon KDP provides the platform for self-publishing and selling books through Amazon, KDP “Select” is an optional program that offers additional promotional and earning opportunities for eBooks and audiobooks only, in exchange for digital exclusivity. When authors enroll an eBook or audiobook in KDP Select, it must remain exclusive to Amazon for the enrollment period of 90 days. During that period, authors cannot distribute their eBook or audiobook through other channels, retailers, or even on their own website. Enrollment automatically renews for successive 90-day periods unless the author disables renewal before the applicable deadline. This restriction does not apply to print editions or other separately published formats, although authors should review Amazon's current terms for specific circumstances.
In return for enrollment in KDP Select, Amazon provides authors additional benefits and opportunities including:
Kindle + Eligibility
Kindle + (formerly known as Kindle Unlimited) is a subscription service from Amazon that allows readers to pay a flat monthly fee and access eligible eBooks and audiobooks from a large catalog without purchasing each book individually. Authors earn royalties when Kindle + subscribers read or listen to their books, based on qualifying pages read or listened to and the applicable payment system. These book formats are still available for Amazon customers to buy individually if they wish, and standard royalties from those sales will continue to be earned. For authors that are prolific with highly engaged readers, page-read royalties from Kindle + can become a meaningful part of their publishing income.
Kindle Countdown Deals
Kindle Countdown Deals (KCD) allow authors to run limited-time discounts for eBooks only on Amazon.com and Amazon.co.uk. Customers will see the regular list price and the promotional price on the eBook's detail page, along with a countdown clock showing how much time is left to purchase the eBook at the promotional price. Authors earn royalties based on their standard royalty rate and the promotional list price.
Free Book Promotions
A Free Book Promotion allows authors to attract new readers and widen their audience by offering an eBook for free for up to five days out of each 90-day KDP Select enrollment period. Authors have the option of running the promotion for five consecutive days, one day at a time, or multiple days in a row. Because the list price on the eBook during the free promotion is $0.00, no royalties are earned.
Earning Higher eBook Royalties in Certain Countries
When authors enroll an eBook in KDP Select, there are specific countries where they will quality for the higher 70% royalty rate. These countries include Brazil, Japan, Mexico, and India. If not enrolled in KDP Select, authors earn the lower 35% eBook royalty rate in these countries.
For authors wanting to self-publish and launch a book with wide distribution, the standard Amazon KDP program will likely be more appealing. They will not be tied down to just one retail channel and can test and explore many different channels including direct sales. For authors wanting to self-publish with a more streamlined approach, enrolling in KDP Select can simplify their distribution strategy while providing some additional benefits. Because Amazon is such a powerhouse in the book marketplace and the Kindle + program is made up of avid readers, the potential to create awareness and grow a readership quickly are increased through KDP Select. This can be particularly attractive to authors who publish in genres with active readerships such as romance, fantasy, science fiction, and certain mystery subgenres. In addition, the Kindle Countdown Deals and Free Book Promotions can be used to grab new readers, test a book or audience, or revive a book series.
The great news is there is a lot of flexibility with Amazon KDP and KDP Select. Authors can launch a book through the KDP Select program to create a buzz and then after 90 days, discontinue their enrollment. Or, authors can launch a book without enrolling in KDP Select and then decide later to enroll a book. Enrollment in KDP Select is not a guarantee of better sales for eBooks and audiobooks. Authors should track actual income, promotional performance, and reader engagement to determine whether the benefits justify giving up wider distribution. Authors can also make different distribution decisions for different books. For example, an author might enroll a popular romance series in KDP Select while distributing nonfiction titles widely.
Whether an author chooses to use the standard Amazon KDP self-publishing program or enrolls in the optional KDP Select program will ultimately depend on their distribution strategy, target readers, and long-term goals. The standard program may be ideal for authors with established audiences outside of Amazon, while KDP Select may be attractive for authors wanting a more focused distribution strategy. The flexibility allows authors to experiment with different approaches instead of treating one distribution strategy as a permanent commitment. If you're looking for tips to optimize your presence on Amazon, improve discoverability, and increase sales, CLICK HERE.
Whether an author chooses to use the standard Amazon KDP self-publishing program or enrolls in the optional KDP Select program will ultimately depend on their distribution strategy, target readers, and long-term goals. The standard program may be ideal for authors with established audiences outside of Amazon, while KDP Select may be attractive for authors wanting a more focused distribution strategy. The flexibility allows authors to experiment with different approaches instead of treating one distribution strategy as a permanent commitment.
If you're looking for tips to optimize your presence on Amazon, improve discoverability, and increase sales, CLICK HERE.
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