Mobile // Mobile Devices
04:52 PM

Amazon Boosts Kindle Royalties

Authors can almost double the amount they receive from sales of digital books priced 20% or more below the list price for the physical book version.

Amazon has launched higher royalties for digital books from do-it-yourself authors and publishers, opening up a new front in the battle among online booksellers.

Amazon on Wednesday increased to 70% the royalties paid to participants in the retailer's self-publishing Kindle Digital Text Platform. The change means authors can almost double the amount they receive from book sales.

However, the offer has a catch that's tied to Amazon's overall strategy of using price to attract more customers than competitors. To qualify for the new rate, participants will have to sell their books for between $2.99 and $9.99 and the price must be at least 20% below the lowest list price for a physical book.

In addition, the Amazon-carried title must be available in all geographies where the book is sold and the price has to be at or below the price offered by competitors.

The new royalty option is available only for books sold in the United States. Amazon is still offering a less-restrictive standard royalty of 30%. Both options are less electronic file delivery costs of 15 cents per megabyte.

Amazon announced in January plans to launch the new royalty rate. The offer is much higher than that for printed books, which Amazon says is often in the 7% to 15% range.

Amazon's latest offering is higher than Google's Editions program, which is scheduled to launch this year with a 63% royalty offering. Amazon's offer is in line with Apple's iTunes App Store, which offers app publishers -- many of whom have turned their books into apps -- 70% royalty.

Yet to be seen is how Barnes & Noble will respond. The bookseller plans to launch its self-publishing platform, Pubit, this summer, but hasn't announced royalty rates.

Comment  | 
Print  | 
More Insights
Newest First  |  Oldest First  |  Threaded View
Building A Mobile Business Mindset
Building A Mobile Business Mindset
Among 688 respondents, 46% have deployed mobile apps, with an additional 24% planning to in the next year. Soon all apps will look like mobile apps and it's past time for those with no plans to get cracking.
Register for InformationWeek Newsletters
White Papers
Current Issue
Top IT Trends to Watch in Financial Services
IT pros at banks, investment houses, insurance companies, and other financial services organizations are focused on a range of issues, from peer-to-peer lending to cybersecurity to performance, agility, and compliance. It all matters.
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on for the week of July 17, 2016. We'll be talking with the editors and correspondents who brought you the top stories of the week to get the "story behind the story."
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.