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Amazon Offers 70-percent Royalties on Kindle e-Books

Posted on 6.29.2010

Today Amazon is officially rolling out its 70-percent royalty option for authors and publishers who use the Kindle Digital Text Platform (DTP), a potentially more lucrative avenue for self-publishers that the company first announced back in January. Authors and publishers who choose the new option will receive 70 percent of the list price net delivery costs ($.15 per MB), which means that they would make $6.25 on a Kindle book sold for $8.99 as opposed to making $3.15 with the DTP standard royalty option.

The 70-percent royalty option is in addition to and will not replace the existing DTP standard royalty option. The new option applies to books sold from the Kindle Store for Kindle, Kindle DX, or one of the Kindle apps for iPad, iPhone, iPod Touch, BlackBerry, PC, Mac and Android phones, and books must be sold to U.S. customers and satisfy the following requirements to qualify:

•    Listed between $2.99 and $9.99 (and at least 20 percent below the physical book’s lowest list price)
•    Available in all geographies for which the author or publisher has rights
•    Included in a broad set of features in the Kindle Store, such as text-to-speech (more features to be included)
•    Offered at or below price parity with competition, including physical book prices

In addition to the higher royalty option, Amazon also announced improvements in the Kindle DTP such as a more intuitive Bookshelf feature and a simplified two-step process for publishing. The Kindle Digital Text Platform is a fast and easy self-publishing tool that lets anyone upload and format their books for sale in the Kindle Store.

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