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Amazon’s Incentives for Lower e-book Prices

chrismcmullen

Low Prices

LOWER PRICES

Amazon and Hachette settled their months-long dispute over e-book prices.

The agreement includes incentives for Hachette when the publisher chooses to deliver lower e-book prices to customers.

Simon & Schuster reached an agreement with Amazon last month, which also included an incentive for delivering lower e-book prices to customers.

How low? That’s a good question.

Kindle Direct Publishing (KDP) has provided such an incentive for years: e-books prices above $9.99 pay a royalty of 35%, whereas book prices between $2.99 and $9.99 pay a royalty of 70% (minus delivery costs).

The terms are no doubt different for the big publishers. The percentages won’t be the same, for one. But the KDP model offers some idea for what to expect.

Don’t expect bestselling traditionally published e-books to dive down to $2.99 or 99 cents. I’m thinking closer to $9.99.

Who wins?

  • The readers win with more affordable e-book prices…

View original post 393 more words

About The Owl Lady

Viv Drewa is a Michigan native who has enjoyed reading and writing since 1963. Though she studied medicinal chemistry at the University of Michigan, her passion has always been writing. She had been awarded third place for her nonfiction short story about her grandfather's escape from Poland. Later, she rewrote this story and was published in the "Polish American Journal" as "From the Pages of Grandfather's Life" and has republished it on Amazon.com as a short story. Viv took creative and journalism courses to help in her transition to fulfill her dream of becoming a writer. She worked as an intern for Port Huron's 'The Times Herald", and also wrote, edited and did the layout or the Blue Water Multiple Sclerosis newsletter "Thumb Prints." She also has a business promoting authors. Owl and Pussycat Book Promotions. Viv, her husband Bob and their cat Princess, live in Fort Gratiot, Michigan.

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