formatting and creating digital code to get your book published on Amazon

How much do you actually get paid?

The first question I often get asked is “how much should I price my book for?” but what a lot of authors don’t understand is what they actually get paid.

Amazon’s 70% royalty rate sounds very attractive but when you do the maths that breaks down very quickly.

Take the example bwlow, assuming you want to sell your book for £1.99 you actually need to load it to Amazon for £.193 to take into account the 3% VAT.

Unless you fill out lots of paperwork to tell the United States Government that you don’t live in the USA then Amazon will automatically give 30% of your price to the Inland Revenue Service.

If you opt for the 70% option you are accepting that you will pay the ‘delivery fee’ based on the size of your book, I’ve over egged it a little in this example, it’s usually around £0.10 for a fiction book.

Amazon then take their 30% which leaves you with around eighty pence…..not quite the two thirds you were expecting!

To have a play around with some pricing click to download my Estimated Royalties spreadsheet.