Did you know Amazon keeps up to 65% of your book’s price? For self-published authors, understanding Amazon royalties is the difference between earning pocket change and building a sustainable income. Whether you’re publishing eBooks, paperbacks, or hardcovers, Amazon’s royalty system is riddled with hidden fees, pricing traps, and lucrative opportunities. How much can you really earn per sale? Why do some authors lose money on print books? And what’s the secret to hitting the 70% royalty tier? In this guide, amazon royalties explained very well, exposing the fine print and showing you how to turn royalties into real revenue.
How Much Does Amazon Pay Per Book?
If you’re wondering how Amazon royalties work, the short answer is: it depends. Amazon pays self-published authors between 35% and 70% in royalties based on factors like book format, pricing, and distribution. Here’s a quick breakdown:
Ebook Royalties (Kindle Direct Publishing - KDP)
- 70% Royalty Option:
- Available for books priced between $2.99 and $9.99
- Only applies to select countries (U.S., U.K., Canada, Australia, and others)
- Delivery fees apply ($0.15 per MB), which can slightly reduce earnings
- 35% Royalty Option:
- Applies to ebooks priced below $2.99 or above $9.99
- No delivery fees, so large file sizes won’t impact earnings
Paperback & Hardcover Royalties
- Amazon KDP royalties explained:
- Authors earn 60% of the book’s list price minus printing costs
- Printing costs depend on factors like page count, ink type, and trim size
- Example:
- A $15.99 paperback with a $4.00 printing cost → ($15.99 × 60%) – $4.00 = $5.59 profit
Expanded Distribution Royalties
- If you enable Expanded Distribution (allowing other retailers like Barnes & Noble to sell your book), the Royalty drops to 40% of the list price, minus printing costs.
Quick Tip: Calculate Your Exact Royalties
Want real-time estimates? Use Amazon’s KDP Royalty Calculator to figure out exactly how much you’ll earn per sale.
How Amazon Royalties Work: A Breakdown
Now that we’ve covered the quick answer to Amazon royalties explained let’s dive deeper into the nitty-gritty of how Amazon royalty rates for authors actually work. Whether you’re publishing an ebook, paperback, or hardcover, your earnings will depend on your book’s price, format, and distribution choices. Here’s a detailed breakdown of what you need to know.
A. Ebook Royalties (Kindle Direct Publishing - KDP)
Amazon offers two royalty options for Kindle ebooks: 70% or 35%, depending on your book’s pricing and market availability.
1. The 70% Royalty Option
If you want the highest possible royalty rate, your book must meet these conditions:
- Price between $2.99 and $9.99 (anything outside this range defaults to 35%)
- Available in select countries (U.S., U.K., Canada, Germany, Australia, and others)
- Delivery fees apply (charged per megabyte of file size)
Example Calculation:
Let’s say your ebook is priced at $4.99, and the file size is 3MB:
- List Price: $4.99
- Royalty Rate: 70% → $4.99 × 70% = $3.49
- Delivery Fee: $0.15 per MB → 3MB × $0.15 = $0.45
- Final Royalty: $3.49 – $0.45 = $3.04 per sale
Pro Tip: To maximize earnings, compress images and limit unnecessary large files to keep delivery fees low.
2. The 35% Royalty Option
If your book is priced below $2.99 or above $9.99, you’ll automatically earn 35% royalties instead of 70%. However, this option has one benefit—no delivery fees, so file size doesn’t impact your earnings.
Example Calculation:
$1.99 ebook would earn:
- List Price: $1.99
- Royalty Rate: 35% → $1.99 × 35% = $0.70 per sale
B. Paperback & Hardcover Royalties
If you’re publishing print books through Amazon KDP, your Royalty is based on this formula:
1. Royalty Formula:
60% of the list price – printing cost = final royalty
The printing cost varies based on the following:
- Page count (more pages = higher cost)
- Trim size (larger books cost more to print)
- Color vs. black & white (color printing is significantly more expensive)
Paperback Example:
- List Price: $14.99
- Royalty Rate: 60% → $14.99 × 60% = $8.99
- Printing Cost: $4.50 (based on 300 black-and-white pages)
- Final Royalty: $8.99 – $4.50 = $4.49 per sale
Hardcover Example:
- List Price: $25.99
- Royalty Rate: 60% → $25.99 × 60% = $15.59
- Printing Cost: $7.50 (based on a premium hardcover format)
- Final Royalty: $15.59 – $7.50 = $8.09 per sale
Printing Tip: Choosing a standard trim size (e.g., 6×9 inches) and black-and-white interiors can help reduce printing costs and increase profit margins.
C. Expanded Distribution (Non-Exclusive Sales)
Want your print books to be available on platforms beyond Amazon, like Barnes & Noble, Ingram, or indie bookstores? You can opt into Expanded Distribution, but it comes at a cost—your royalty rate drops from 60% to 40%.
Pros & Cons of Expanded Distribution
Example: Paperback Sold via Expanded Distribution
- List Price: $14.99
- Royalty Rate: 40% → $14.99 × 40% = $5.99
- Printing Cost: $4.50
- Final Royalty: $5.99 – $4.50 = $1.49 per sale
When should you use Expanded Distribution?
If your goal is to maximize earnings, sticking with Amazon’s 60% rate is usually the better option. However, if you write non-fiction or academic books or have a niche audience, getting into more stores can be beneficial for visibility.
Factors That Affect Your Royalties
Now that we’ve covered Amazon royalties explained in terms of percentages, printing costs, and distribution choices, it’s time to look at what really impacts your bottom line. Just because Amazon offers a 70% royalty rate doesn’t mean you’ll automatically earn the highest possible profit. Several factors can either boost your earnings or chip away at them. Understanding these can help you make smarter pricing and publishing decisions.
1. Pricing Strategy
Amazon’s 70% royalty tier for ebooks only applies to books priced between $2.99 and $9.99. Anything below or above that range defaults to 35% royalties, significantly reducing your profits per sale. This means that if you price your ebook at $10.99 instead of $9.99, you’re cutting your royalty rate in half, making less per sale.
For most self-published authors, pricing between $3.99 and $6.99 tends to be the sweet spot. It keeps the price attractive to readers while maximizing royalties. However, some authors find success experimenting with pricing strategies, such as temporarily lowering the price for a promotion and then adjusting it back up once they’ve gained visibility.
2. Page Count and Print Costs
For print books, longer books cost more to print, which directly reduces your earnings. Paperbacks and hardcovers are charged a fixed base printing cost plus an additional fee per page. This means a 400-page novel will have significantly lower royalties than a 200-page book, even if they have the same list price.
Choosing the right trim size and formatting choices can make a big difference. Standard trim sizes like 6×9 inches and black-and-white interiors are the most cost-effective. If you opt for color printing, expect significantly higher printing fees, which will eat into your profit margins.
3. KDP Select vs. Wide Distribution
One of the biggest decisions self-published authors face is whether to enroll in KDP Select or go wide. KDP Select requires you to sell your ebook exclusively on Amazon for 90-day periods but offers extra benefits like Kindle Unlimited (KU) and promotional tools. Authors in KU get paid per page read, which can sometimes generate more revenue than direct ebook sales.
Going wide means distributing your book beyond Amazon, allowing it to be sold on platforms like Apple Books, Barnes & Noble, and Kobo. While this gives you greater reach, it also means missing out on Kindle Unlimited readers and Amazon’s exclusive marketing perks.
For new authors, starting with KDP Select can be a smart move to boost visibility through KU page reads and Amazon promotions. Once an author builds a strong reader base, they may consider expanding to wide distribution to reach more platforms and diversify income streams.
4. Geographic Pricing and Currency Differences
Amazon allows you to set different prices for different countries, and failing to optimize this can result in lost royalties. Since exchange rates fluctuate, a book priced at $4.99 in the U.S. might be converted to a less profitable price in another market. Authors should manually adjust regional pricing to ensure they stay within the 70% royalty tier while remaining competitive in international markets.
Additionally, some countries don’t qualify for the 70% royalty rate, meaning books sold in those regions will always earn 35% royalties, regardless of price. It’s important to check which regions support the higher royalty rate before setting your book’s pricing strategy.
5. Returns and Refunds
Many authors don’t realize that Amazon deducts royalties for returned books, which can be frustrating—especially for ebooks. Kindle readers have seven days to return an ebook for a full refund, and if they do, you lose the Royalty for that sale.
For print books, returns usually happen when customers order through Expanded Distribution and retailers return unsold copies. Since Amazon prints books on demand, this isn’t as common for direct Amazon sales, but it can still impact authors using wider distribution channels.
To minimize the impact of returns, some authors experiment with free samples or “Look Inside” previews to give readers a better idea of the book’s content before they buy. This helps reduce impulse purchases that might later turn into refunds.
Hidden Costs & Fees
Now that we’ve covered the factors that impact Amazon royalties, it’s time to talk about something most authors overlook—hidden costs and fees. While Amazon’s royalty rates may seem straightforward, various deductions can quietly reduce your earnings. Understanding these hidden costs can help you avoid unnecessary expenses and maximize profits.
1. Delivery Fees
For ebooks enrolled in the 70% royalty tier, Amazon charges a delivery fee based on the file size of your book. This fee is $0.15 per megabyte (MB) in the U.S., with slightly different rates in other regions. While this might seem minor, large file sizes can add up and take a surprising chunk out of your royalties.
Authors publishing image-heavy books, such as illustrated guides or photography collections, often see the biggest impact. A high-resolution ebook with a 20MB file size could face a $3.00 delivery fee per sale, significantly reducing profits.
The best way to minimize this is by compressing images and optimizing your ebook file. Amazon recommends using JPEG images with a quality setting of 60-80% to balance quality and file size. Formatting tools like Kindle Create or Scrivener can also help reduce file size without sacrificing readability.
2. Tax Withholdings
If you’re a non-U.S. author, Amazon automatically withholds 15-30% of your royalties for tax purposes. The exact percentage depends on your country’s tax treaty with the U.S. Without proper documentation, you could end up losing a significant portion of your earnings.
The good news is that this withholding rate can often be reduced or eliminated by submitting a W-8BEN form through your KDP account. This form allows international authors to claim tax treaty benefits, which can lower the withholding tax to 0-15%, depending on the country.
Many authors don’t realize how much they’re losing to tax withholdings until they check their royalty statements. Submitting tax forms early ensures you’re not giving up more than necessary.
3. Currency Conversion
Amazon sells books in multiple currencies, and if you’re paid in a currency different from your local bank account, exchange rate fluctuations can eat into your earnings. The amount you receive depends on Amazon’s internal conversion rates, which may not always be favorable compared to standard exchange rates.
If your primary market is outside the U.S., consider setting up a multi-currency account through services like Wise or Payoneer. These platforms allow you to hold and transfer payments in different currencies, potentially reducing conversion fees and ensuring you get the best exchange rate when withdrawing funds.
4. Promo Costs
Promotions like Kindle Countdown Deals and Free Book Promotions can be great for visibility, but they temporarily reduce or eliminate royalties during the promotional period.
A Kindle Countdown Deal allows authors in the 70% royalty tier to discount their ebook for a limited time while still earning 70% royalties. However, the revenue per sale is lower due to the discounted price.
Free Book Promotions allow an ebook to be free for up to five days during a 90-day period if enrolled in KDP Select. While free downloads don’t generate royalties, they can boost rankings and visibility, leading to more paid sales later.
Both promotional tools can be effective for boosting exposure, but they should be used strategically. Running promotions too frequently can train readers to expect discounts, potentially lowering full-price sales in the long run.
How to Maximize Your Amazon Royalties
Understanding Amazon royalties is just the first step. The real challenge is making sure you keep as much of your earnings as possible. Hidden costs, pricing strategies, and distribution choices all play a role in determining how much money ends up in your pocket. Here are some of the best ways to maximize your Amazon royalties and avoid unnecessary deductions.
1. Optimize eBook File Size to Reduce Delivery Fees.
For authors enrolled in the 70% royalty tier, delivery fees can quietly eat into profits. These fees are charged per megabyte, meaning large file sizes directly impact how much you earn per sale. The best way to reduce these fees is by optimizing images and formatting the ebook properly.
Using lower-resolution images, compressing graphics, and eliminating unnecessary large files can make a significant difference. Tools like Kindle Create or Calibre help reduce file size without affecting readability. Keeping the file under 3MB ensures delivery fees stay minimal, preserving more of the 70% royalty.
2. Bundle Books for Higher Royalties
Box sets and multi-book bundles are a smart way to increase earnings while staying in the 70% royalty range. Since Amazon limits 70% royalties to books priced between $2.99 and $9.99, bundling multiple books into a single $9.99 package allows authors to maximize earnings per sale.
A single book priced at $3.99 earns about $2.70 per sale after delivery fees. A three-book bundle at $9.99 earns around $6.99 per sale, nearly tripling profits while offering readers a better value. This strategy works well for series authors, non-fiction guides, and collections of short stories.
3. Weighing KDP Select vs. Non-Exclusive Sales
Enrolling in KDP Select gives access to Kindle Unlimited (KU) and promotional tools, but it also means exclusivity. KU pays per page read, which can be profitable for certain genres, especially romance, sci-fi, and non-fiction. However, authors targeting wider audiences may benefit more from selling on multiple platforms like Apple Books, Kobo, and Barnes & Noble.
Testing both strategies can help determine what works best. Some authors start with KDP Select to build visibility before moving to wide distribution. Others stay exclusive for the long-term due to consistent KU payouts. The best approach depends on book genre, audience, and overall publishing goals.
4. Lower Print Costs with Smart Formatting Choices
For paperback and hardcover books, printing costs are one of the biggest factors affecting royalties. More pages mean higher costs and color printing is significantly more expensive than black-and-white. Choosing a standard trim size, like 6×9 inches, and using black-and-white interiors can keep printing costs down.
Font choices and formatting decisions also impact page count. Reducing excessive white space, using slightly smaller font sizes, and adjusting line spacing can decrease total pages without sacrificing readability. This small adjustment can mean the difference between making a few cents or a few dollars per sale.
5. Price Strategically to Stay in the 70% Royalty Tier
Pricing is one of the most critical factors in maximizing royalties. Keeping ebooks priced between $2.99 and $9.99 ensures access to 70% royalties instead of 35%. However, within that range, small adjustments can lead to better profits.
Pricing a book at $4.99 instead of $2.99 increases the royalty payout while still keeping the book affordable for most readers. Testing different price points can reveal the sweet spot where demand and profitability balance out. Regularly monitoring sales trends and adjusting prices based on performance ensures books remain competitive while maximizing earnings.
Maximizing Amazon royalties isn’t just about setting a price and hoping for the best. Smart strategies around file optimization, bundling, distribution, printing choices, and pricing can significantly increase earnings. By making informed decisions, authors can ensure they keep more of what they earn and build a profitable self-publishing career.
Final Note
With Amazon royalties explained, you can be sure about the prices and percentages Amazon keeps. With this massive ecommerce market, it’s not just about percentages; it’s about strategy. From optimizing eBook file sizes to dodging tax withholdings, every decision impacts your bottom line. Remember: pricing between 2.99and2.99and9.99 unlocks 70% royalties, print costs can slash profits by half, and KDP Select’s exclusivity might be your golden ticket. Whether you’re a debut novelist or a seasoned author, these insights ensure you keep more of what you earn. Ready to maximize your royalties? Start by calculating your next book’s profit with Amazon’s KDP tool—and watch your author income grow.
frequently asked questions
Amazon royalties depend on format, price, and distribution. For eBooks:
- 70% Option: (List Price × 70%) – Delivery Fees (0.15/MB).∗Example∗: A0.15/MB).∗Example∗: A4.99 eBook with a 2MB file earns (4.99×0.70)–(4.99×0.70)–(0.30) = $3.19.
- 35% Option: List Price × 35% (no delivery fees).
- For print books:
- Royalty = (List Price × 60%) – Printing Costs.
- Use Amazon’s KDP Royalty Calculator for precise estimates based on page count, trim size, and ink type.
Delivery fees apply to eBooks in the 70% royalty tier and are based on file size. To minimize fees:
- Compress images to 72 DPI and use JPEG format.
- Avoid embedded fonts or excessive formatting.
- Use tools like Kindle Create or Calibre to optimize file size.
- A 3MB eBook costs 0.45indeliveryfees—trimmingitto1MBsaves0.45indeliveryfees—trimmingitto1MBsaves0.30 per sale.
KDP Select offers two perks:
- Kindle Unlimited (KU): Earn 0.004–0.004–0.005 per page read (lucrative for long series).
- Promotional Tools: Run Countdown Deals or Free Book Promotions.
- Trade-off: You can’t distribute eBooks elsewhere (e.g., Apple Books). Best for genres like romance or thriller with voracious KU readers. Test exclusivity for 90 days, then reassess.
Print costs destroy margins if not managed. A 5 to print, leaving a $3.99 profit. Reduce costs by:
- Choosing 6×9 trim size (standard and cost-effective).
- Using black-and-white interiors (color prints cost 4x more).
- Trimming page count with tighter formatting.
Non-U.S. authors face 15–30% tax deductions. To reduce this:
- Submit a W-8BEN form via KDP to claim tax treaty benefits (e.g., 0% withholding for UK authors).
- Set up a U.S. LLC (complex but can eliminate withholdings).
- Consult a tax professional to ensure compliance.
