Amazon Announced their New Royalty Program for Kindle Book Sales
Amazon.com has announced that they will be offering do-it-yourself authors and publishers a bigger cut of their book sales on Kindle eReader. Although there will be certain criterias that authors/publishers need to meet in order to be eligible for the higher share of the book sales with this strategy I think Amazon has not only thought considerably about the authors and publishers but for their consumers as well (the criterias laid will help keep the prices of the books down for end users).
The program offer users(authors/publishers) of its e-book self-publishing program (Kindle Digital Text Platform), royalties on book sales of 70% after delivery costs. Such costs not exceeding 6 cents per book, Amazon said it will be a great potential for authors to earn as much as $6.25 per copy on a book that is marked at $8.99 rather than the old rate of $3.15.
Here are the criteria that the authors and publishers need to meet in order to qualify for the royalty program: Source
The Book’s list price must fall between $2.99 and $9.99 and be at least 20 percent below the lowest price of the physical edition of the book. It also has to sell on Amazon for the same price, or less, as it does with competing book sellers.
Finally, it has to be available everywhere the author or publisher has intellectual property rights.
Amazon said the new structure will not apply to books published before 1923 and will only be available for books sold in the U.S., initially. And since it only applies to content published through the Kindle Digital Text Platform, it won’t affect royalty rates on books from major publishers such as Random House Inc. or Scholastic Inc.
This is no doubt a good strategy for Amazon to stay ahead of the competition in the eBook market (Check my previous post to get a feel of the competition)