How Authors Earnings From Kindle eBooks: The Royalties Process Explained

Do you want to know how authors earn money from Kindle eBooks and the process for receiving royalties? In this article, we’ll explain the simple and fair system used by Amazon KDP to distribute earnings directly to authors.

Setting Up a Direct Deposit Account

When you publish a Kindle eBook through Amazon KDP, you need to provide a bank account to receive your royalties directly. Many authors create a dedicated account specifically for these earnings, ensuring a smooth financial flow. As your eBook sells, the respective royalty is deposited into this specified account one by one.

The KDP system offers two straightforward royalty options: 70% and 35%. Here’s a quick breakdown:

70%: Available for books priced at $2.99 or higher. 35%: Available for books priced at less than $2.99 (usually 99 cents).

The Payment Process

Each month, Amazon tallies the number of copies of your book sold and sends the corresponding royalties to your specified bank account via direct deposit. If you prefer, you can also opt for a check to be mailed. This ensures timely payments, and the process usually takes about 60 days after the end of the month the sales occurred.

Understanding the 60-Day Delay

The 60-day delay in payment is there for a good reason. Amazon needs to account for potential refunds, reconcile transactions, and close out the books for the month. This process ensures that all sales are accurately recorded and accounted for.

However, you don’t have to wait for months to know your earnings. Amazon provides monthly statements on the author's 'bookshelf' dashboard, detailing your royalty earnings. This is useful for tracking the performance of your promotions.

Cross-Retailer Earnings

It’s worth noting that Amazon isn’t the only retailer for Kindle eBooks. Other platforms like Barnes Noble, Walmart, and Kobo operate similarly. These retailers also offer straightforward royalty rates, ensuring a consistent and fair payment process for authors.

Payment Frequency and International Considerations

Failure to disclose a frequent payment misunderstanding is that authors receive royalties on a monthly basis. Specifically, payments are issued two months after the sale period. Depending on your location, this can result in either a direct bank deposit in your home country or a mailed check.

Additionally, it’s important to note that there are no fees other than standard bank charges for these direct deposits.

In conclusion, the Amazon KDP system is designed to be as fair and convenient as possible for authors. By understanding the process, you can make the most of your earnings from Kindle eBooks.