Amber Skye Forbes

Writing Words With the Tips of My Toes

Is 70% Royalty Really 70%?

A very insightful post for those going the self-publishing route. And a delivery fee? Really, Amazon?

Legends of Windemere

I just found this article about the Amazon 70% royalty rate.  It includes a delivery fee, so you don’t really get 70%.

Here’s some math from the article:

If you upload your 30MB $6.99 eBook file, and are on a 70% royalty plan, you get dinged for a $4.50 delivery fee with every Amazon sale. Your 70% royalty for each sale is actually [$6.99 – (30MB x $0.15)] x 70% = $1.74. Since your 70% royalty is actually only paying you 25% you are then advised to just use the 35% royalty plan because there is no “delivery fee” at 35%. If I wanted to make the $4.89 royalty implied by the 70% plan I would need to price my $6.99 book at $11.50 so as to accommodate the delivery fee.

Another Example:
My $4.99 15MB book at 70% royalty is:
($4.99 – (15 * .15))*.70 = $1.92


View original post 12 more words


One comment on “Is 70% Royalty Really 70%?

  1. Minuscule Moments
    June 3, 2013

    Thanks for sharing, the mind boggles when it comes to what you actually receive in total. Thanks Charles something to watch out for to be sure.

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