Kindle e-book Prices
Here are three important considerations that go into e-book prices:
- What list price to set
- What the per-book royalty will be
- What the net royalty will be
These three figures are related by price elasticity.
The general trend is that a lower list price will attract more readers. But more readers doesnโt necessarily translate into a greater net royalty. It depends.
Suppose you price an e-book for $5.99 and would sell 500 copies at Amazon. Assuming a negligible delivery cost, the royalty would be $4.19 per book, and the net royalty would be $2095.
Pricing the e-book instead at $3.99 may reach more readers. The per-book royalty would be $2.79.
- If you sell 1000 copies at $3.99, the net royalty would be $2793. In this case, the lower price is worth it.
- But if you sell 600 copies at $3.99, the net royalty would be $1674. Inโฆ
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