How Much is Amazon KDP’s Share of Your Book Earnings?

It’s important to understand how much of your earnings Amazon will keep. Amazon isn’t offering you a platform to publish your book for free out of pure generosity, they’re a business, and they get paid from taking a portion of your sales. The amount Amazon keeps depends on various factors. It is determined from book price, the region where it’s sold, its size and the number of pages. The portion that is your royalty will vary, but just take heart that you will get paid something and having an understanding of the system will give you a bit of leverage to get the best possible royalty for your book. 

The Parameters for eBooks

If you set up your book as an eBook and set the price as less than $2.99, or more than $9.99, Amazon takes 65% of your earnings, leaving you with 35%. However, if your eBook is priced between $2.99 and $9.99, Amazon will take a smaller cut, only 30%. This leaves you with 70% as your royalty. So obviously, when you price your book in that sweet spot, it will be more beneficial for you.

The Parameters for Printed Books

For printed books, the royalties are calculated per the following:

Royalty = (List Price - Printing Cost) × Distribution Channel Percentage

The distribution channel percentages are:

60% for sales on Amazon marketplaces

40% for sales through expanded distribution (to bookstores, libraries, etc.)(Look for the blog on Expanded Distribution to cover this topic in detail)

For example:

If you price a paperback at $15.99

And the printing cost is $4.85

For an Amazon marketplace sale: ($15.99 - $4.85) × 60% = $6.68 royalty

For expanded distribution: ($15.99 - $4.85) × 40% = $4.46 royalty

Other factors which will affect the royalty are these details:

Printing costs vary based on:

• Page count
• Interior type (black & white vs. color)
• Paper type
• Book size
• Cover finish (hardcover/paperback)

Minimum list price requirements:

• Must be high enough to cover printing costs
• Must include a minimum margin set by Amazon
• Varies by marketplace/currency

The KDP Select Program

Amazon also offers something called the KDP Select Program. (See our blog on this subject https://selfpublishingtitans.com/blog). When you enroll your book in this program, you agree to make it available exclusively on Amazon for a certain period. In return, you get access to readers through Kindle Unlimited and Kindle Owners' Lending Library. You also earn a share of a global fund whenever someone reads your book.

Amazon will take a percentage of your sales but the Select Program gives you an incredible reach to potential readers.