Pricing and Royalties ...

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Working out how to price

your e-book Vintage typewriter on a writing bureau with a writing manual and bottle of brandy. How to price your ebook with www.seanchaiepublishing.comcan be a confusing time. Many of the digital retailers offer a different percentage of revenue/royalties based on the list price of the book. For instance Amazon’s KDP pays 35% for e-books listed below $2.99 or above $9.99 and 70% for prices in between.
 
This leaves you with the option of listing your e-book at a lower price with the potential for more sales but less revenue or listing it between the $2.99 and $9.98 pricing structure and earning more revenue on each e-book sold.

 

Evidence suggests that fiction sells better if listed at a lower price and readers are more likely to purchase a lower priced book as opposed to a high priced book. Therefore, if the e-book is priced low - although the percentage of commission that Amazon would take would be higher - the book would be more attractive to customers. This would mean that the e-book is more likely to make significant sales and move up the charts. If the book reaches the top ten of its category Amazon will start to suggest the book to readers who are buying similar books and potentially more readers will see and purchase your book.

 

If you choose the option to price your e-book above the $2.99 threshold you would receive the 70% royalty and earn more money for each book that is sold. The downside to this option is that the higher price could potentially stunt sales.

 

Apple iBooks pay 70% on royalties of all e-books listed irrespective of the list price.

 

Nook and Kobo use a similar commission structure to Amazon.

 

Google Plus do not state how much commission they take and offer discounts to customers. Although this is attractive to consumers and appealing to you as an author - as you will still receive the same amount of royalties despite the selling price - it does have a downside. If the Google discounted list price falls below the listed price for your e-book with other digital retailers the other retailers will lower the listed price for your e-book to match the selling price of Google. Therefore it is imperative that your e-book is listed at a higher price with Google to ensure continuity for your e-book selling price across all digital retailer platforms.

 

If you are struggling to price your e-book and would like to discuss it further please contact us for impartial advice and guidance.

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