Monday, 2 August 2010

Amazon Kindle - publisher commission

I've just noticed the commission rates on Kindle Amazon.com. If we load up an e-book in Kindle format on Amazon.com we can retain 70% of the sale price. The remainder goes to Amazon. As a consequence we were able to bring the e-book price right down and still maintain a reasonable margin. However if someone from outside of the USA downloads the same e-book we as publishers are only given 35% commission on that sale.
The "effort" on the part of Amazon for the sale is no different if the customer is based in the UK or the USA, there is no logic with their pricing.

Ho hum, I guess we'll have to increase the price of the Kindle versions of the book to make a reasonable recovery rate. So the customer suffers. There are other e-book distributors who do not play games with commission rates, we'll make the lower price version available there in other e-book formats. Amazon should learn that in the digital book world the logistics equation is rather more flexible.
Alaric

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