Authors who publish through Amazon KDP can earn an income from the platform in the form of a royalty percentage per unit sold.
Amazon KDP is a self-publishing platform where authors can reach millions of customers with their books.
Authors get paid in the form of a royalty percentage every time that one of their Amazon KDP eBooks, paperbacks or hardbacks are sold. These earnings may vary, though, depending on the type of book sold and the delivery or printing costs involved.
How does Amazon KDP work?
Amazon KPD is a leading self-publishing platform that allows authors of all different skill and notoriety levels the chance to distribute their books to the millions of customers on the platform, without having to commit to any upfront promotional, printing or distribution costs.
Authors can simply publish their books on the platform with the help of the various tools at their disposal. They then simply wait for the royalties from these self-published works to start rolling in.
What is Amazon KDP royalty?
The Amazon KDP platform has been touted as one of the best ways to generate a passive income.
After all, once you have actually done all the necessary research and written and published your book, this book can continue to generate income for years on end, without you ever having to update or change the listing.
Some Amazon KDP authors still earn thousands of dollars in royalties from their Amazon KDP books, years after the books were first published.
This is because the Amazon KDP royalty system pays authors a percentage of the list price every time that their book is sold, no matter how long ago the book was published.
Amazon KDP allows authors to sell their books in eBook, paperback and hardcover form, with the help of the platform’s print-on-demand service, which prints books as and when they are ordered.
The royalty earnings for each of these options can be summarized as follows:
|Royalty option 1||The 35% Royalty Option:
Royalty Rate [0.35] x (List Price – applicable VAT) = Royalty amount per sale
|The Amazon distribution channels option:
(Royalty rate [0.6] x list price) – printing costs = Royalty amount per sale
|(Royalty rate [0.6] x list price) – printing costs = Royalty amount per sale|
|Royalty option 2||The 70% Royalty Option:
Royalty Rate [0.7] x (List Price – applicable VAT – Delivery Costs) = Royalty amount per sale
|The Expanded distribution channels option:
(Royalty rate [0.4] x list price) – printing costs = Royalty amount per sale
It is therefore extremely important that you understand exactly how delivery costs and printing costs are calculated, so that you can accurately manage your royalty earnings from Amazon KDP.
How much will your Amazon KDP eBook delivery costs be?
If your Amazon KDP eBook is sold to one of the customers in the 70% territories, the delivery costs of the eBook will be deducted from the list price within the calculation of your royalty earnings.
You do not have much control over what the delivery cost of your eBook will be, but this will vary based on the file size of your book. On average, the delivery costs should be around $0.06 per unit sold.
How are the printing costs for paperbacks and hardcovers calculated?
The printing cost, which is deducted from the royalty earnings on Amazon KDP paperbacks and hardcovers, vary based on a few different factors.
This includes the type of book that it is, the type of paper used, the type of ink used, the number of pages in your book, and the Amazon marketplace from which the book was ordered.
If you do not choose the Amazon Distribution channels option for your paperback book, you can use this Amazon KDP calculator to get an estimated amount for the printing costs of your book before you actually finish finalizing the book for publishing.
How to keep track of your Amazon KDP royalties once you have published
You will probably spend some time figuring out the right list price to ensure that you get a good balance of sales volume and royalty earnings with your book before you even finish publishing the book.
But it is also really important to keep track of these earnings once the book has been published.
The old way to view the orders, sales, and royalties earned from your Amazon KDP books was to generate and download the “Sales and Royalties Report” from your Sales Dashboard, but this old method has now been replaced by a new report.
To access this report, you need to visit the KDP Reports Beta website and log into your Amazon KDP account.