A very insightful post for those going the self-publishing route. And a delivery fee? Really, Amazon?
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.
My $4.99 15MB book at 70% royalty is:
($4.99 – (15 * .15))*.70 = $1.92
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