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You can choose between 2 royalty options for each of your Digital Books, the 35% royalty option and the 70% royalty option, described below.

1. Royalties

 

35% Royalty Option

70% Royalty Option

A. Available Sales Territories

If you choose this Royalty option for your Digital Book, it will apply to sales of your Digital Book to customers in any territory.

If you choose this Royalty option for your Digital Book, it will apply to sales of your Digital Book to customers in the following Available Sales Territories:

Andorra
Australia
Austria
Belgium
Brazil*
Canada
France
Germany
India*
Italy
Japan*
Liechtenstein
Luxembourg
Mexico*
Monaco
New Zealand
San Marino
Switzerland
Spain
United Kingdom (including Guernsey, Jersey and Isle of Man)
United States
Vatican City

Your Royalty on sales to customers outside the Available Sales Territories will be as provided under the 35% Royalty Option (i.e., at the 35% Royalty Rate calculated as indicated for that Royalty option).

B. Royalty Rate

35%

70%

i. Royalty Calculation for List Price

The 35% Royalty Rate times the Digital Book's List Price.

35% Royalty Rate x List price = Royalty

See Matching Competitor Prices below for exceptions.

The 70% Royalty Rate times the amount equal to the Digital Book's List Price less Delivery Costs, for sales to customers in the Available Sales Territories indicated above.

70% Royalty Rate x (List Price - Delivery Costs) = Royalty

See Matching Competitor Prices below for exceptions.

ii. Royalty Calculation for Promotional List Price

The 35% Royalty Rate times the Digital Book's Promotional List Price set under the Kindle MatchBook program.

35% Royalty Rate x Promotional List Price = Royalty

See Matching Competitor Prices below for exceptions.

The 70% Royalty Rate times the amount equal to the Digital Book's Promotional List Price less Delivery Costs, for sales to customers in the Available Sales Territories indicated above.

If your Digital Book is eligible to earn the 70% Royalty Rate based on sales of the Digital Book at the List Price, the same 70% Royalty Rate will apply in calculating royalties based on sales of your Digital Book at a Promotional List Price set under the Kindle MatchBook program.

70% Royalty Rate x (Promotional List Price - Delivery Costs) = Royalty

See Matching Competitor Prices below for exceptions.

C. Delivery Costs

Not applicable - we don't deduct Delivery Costs when calculating your Royalties.

Delivery Costs are equal to the number of megabytes we determine your Digital Book file contains, multiplied by the Delivery Cost rate listed below.

Amazon.com: US $0.15/MB
India on Amazon.com: INR ₹7/MB
Amazon CA: CAD $0.15/MB
Brazil: BRL R$0.30/MB
Amazon.co.uk: UK £0.10/MB
Amazon.de: €0,12/MB
Amazon.fr: €0,12/MB
Amazon.es: €0,12/MB
Amazon.it: €0,12/MB
Amazon.co.jp:
JPY1/MB for files less than 10MB, no charge for files equal to or over 10MB
Amazon.com.mx: MXN $1/MB
Amazon.com.au: AUD $0.15/MB

We will round file sizes up to the nearest kilobyte. The minimum Delivery Cost for a Digital Book will be US$0.01 for sales in US Dollars, INR₹1 for sales in Indian Rupees, CAD$0.01 for sales in CAD Dollars, £0.01 for sales in GB Pounds, ¥1 in JPY, R$0.01 for sales in Brazilian Reais, $1 MXN for sales in Mexican Pesos, AUD $0.01 for sales in Australian Dollars, and €0.01 for sales in Euros, regardless of file size.  For sales in JPY, we will not deduct any Delivery Cost for books 10 MB or greater.

D. Matching Competitor Prices

From time to time your book may be made available through other sales channels as part of a free promotion. It is important that Digital Books made available through the Program have promotions that are on par with free promotions of the same book in another sales channel. Therefore, if your Digital Book is available through another sales channel for free, we may also make it available for free. If we match a free promotion of your Digital Book somewhere else, your Royalty during that promotion will be zero. (Unlike under the 70% Royalty Option, if we match a price for your Digital Book that is above zero, it won't change the calculation of your Royalties indicated in C. above.)

If we price-match your Digital Book, your Royalty will be:

The Royalty Rate indicated above, multiplied by the price at which we sell the Digital Book, less taxes and Delivery Costs, for sales to customers in the Available Sales Territories.

Royalty Rate x (Amazon price - taxes and Delivery Costs) = Royalty

By "price-match" we mean where we sell the Digital Book in one or more of the Available Sales Territories at a price (net of taxes) that is below the List Price to match a third party's sales price for any digital or physical edition of the Digital Book, or to match our sales price for any physical edition of the Digital Book, in any one of the Available Sales Territories.



*70% Royalty in Brazil, Japan, Mexico, and India. Digital Books enrolled in KDP Select will be eligible to earn 70% royalty for sales to customers in Brazil, Japan, Mexico, and India. The List Price you set for Brazil, Japan, Mexico, and India must also meet the 70% List Price requirements for sales to customers in Brazil, Japan, Mexico, and India. If your Digital Book is not enrolled in KDP Select or you do not meet the 70% List Price requirements, you will earn 35% royalty.

2. Royalty Calculation Examples

A. 35% Royalty Option.

i. Example:
• U.S. Dollar List Price = $0.99.
• We aren't matching a free promotion on another sales channel.
• Your Royalty per sale to a customer in any location from Amazon.com is:

0.35 x $0.99 = $0.35
Royalty Rate x List Price = Royalty

ii. Example:
• Same as above but we're matching a free promotion on another sales channel.
• Your Royalty is zero.

iii. Example:
• JPY List Price = ¥100.
• We aren't matching a free promotion on another sales channel.
• Your Royalty per sale to a customer in any location from Amazon.co.jp is:

0.35 x ¥100 = ¥35
Royalty Rate x List Price = Royalty

iv. Example:

• Same as above but we're matching a free promotion on another sales channel.  
• Your Royalty is zero.

B. 70% Royalty Option.

i. Example:
• UK Pounds List Price = £1.49.
• UK Delivery Costs = £0.10/MB
• Book's file size is 1 MB
• We don't price-match your book.
• Your Royalty per sale to a UK customer from Amazon.co.uk is:

0.70 x (£1.49 - £0.10) = £0.97
Royalty Rate x (List Price - Delivery Costs) = Royalty

ii. Example:
• Same as above except we price-match your book to a competitor's tax- inclusive price of £1.39.
• Your royalty per sale to a UK customer from Amazon.co.uk is:

0.70 x (£1.39 - £0.04 - £0.10) = £0.87
Royalty Rate x (Amazon price - taxes - Delivery Costs) = Royalty

In this example, we deduct £0.04 for taxes, equal to 3% of the sale price. Effective January 1, 2012, when we sell a Digital Book to an EU customer from one of our EU websites, the price includes value-added tax at the rate of 3%, the statutory Luxembourg rate. Tax rates for sales in other countries and from other Amazon websites may vary.

iii. Example:
• JPY List Price = ¥149.
• Book's file size is 1 MB
• We don't price-match your book.
• Your Royalty per sale to a JP customer from Amazon.co.jp is:

0.70 x (¥149 - ¥1) = ¥104
Royalty Rate x (List Price - Delivery Costs) = Royalty

iv. Example:
• Same as above except we price-match your book to a competitor's price of ¥139.
• Your royalty per sale to a JP customer from Amazon.co.jp is:

0.70 x (¥139 - ¥1) = ¥97
Royalty Rate x (Amazon price - taxes - Delivery Costs) = Royalty

C. 35% Royalty Option for Promotional List Price..

i. Example:
• U.S. Dollar List Price = $1.99.
• U.S. Dollar Promotional List Price = $0.99.
• We aren't matching a free promotion on another sales channel.
• Your Royalty per sale to a customer in any location from Amazon.com is:

0.35 x $0.99 = $0.35
Royalty Rate x List Price = Royalty

ii. Example:
• Same as above but we're matching a free promotion on another sales channel.
• Your Royalty is zero.

iii. Example:
• Same as above but book is listed as a Free Book Promotion through KDP Select.
• Your Royalty is zero.

D. 70% Royalty Option for Promotional List Price..

i. Example:
• U.S. Dollar List Price = $5.99.
• U.S. Dollar Promotional List Price = $1.99.
• U.S. Delivery Costs  = $0.15/MB
• Book's file size is 1 MB
• We aren't matching a free promotion on another sales channel.
• Your Royalty per sale to a customer in any location from Amazon.com is:

0.70 x ($1.99 - $0.15) = $1.29
Royalty Rate x (List Price - Delivery Costs) = Royalty

ii. Example:
• Same as above but we're matching a free promotion on another sales channel.
• Your Royalty is zero.

iii. Example:
• Same as above but book is listed as a Free Book Promotion through KDP Select.
• Your Royalty is zero.

3. Changing Your Royalty Options

If you would like to make changes to your Royalty options, just visit your Bookshelf. It may take up to 48 hours for your change to be effective.

4. Setting Your List Price

You must set your Digital Book's List Price (and change it from time-to-time if necessary) so that it is no higher than the list price in any sales channel for any digital or physical edition of the Digital Book.

But if you choose the 70% Royalty Option, you must further set and adjust your List Price so that it is at least 20% below the list price in any sales channel for any physical edition of the Digital Book.

By "list price in any sales channel," we mean the suggested or recommended retail price or, if you sell your book directly to end users, your own sales price, for an edition of the book available outside of our Program.

When you set your List Price for our EU websites, you have to factor in the additional 3% value-added taxes (the Luxembourg statutory rate effective January 1, 2012) we will add for EU customers, so that your List Price complies with this section after adding these VAT taxes.

5. Additional 70% Royalty Option Terms and Conditions

i. Book Eligibility: Books that consist primarily of public domain content are not eligible for the 70% Royalty Option.

ii. Distribution Territory: If you select the 70% Royalty Option for a Digital Book, you must make it available to us for distribution in each territory for which you have appropriate distribution rights, and you must comply with any other restrictions or requirements we may provide from time to time for the 70% Royalty Option in the Program Policies.

iii. New Features: Any new feature incorporated into the Program will apply to all Digital Books distributed under the 70% Option even if we make the feature optional for other Digital Books.

iv. Non-Compliance: If at any time your Digital Book does not meet the requirements for the 70% Royalty Option, the Royalty for the Digital Book will be as provided in the 35% Royalty Option and we can adjust previously reported or paid Royalties based on the 35% Royalty Option.

6. Other Pricing Terms

i. Minimum and Maximum List Prices: To be accepted in the Program, Digital Books must have List Prices within the range of minimum and maximum List Prices indicated here.
Note that if your Digital Book is eligible for the 70% royalty option, your Digital Book will earn 70% on each sale of the Digital Book at a Promotional List Price set under the Kindle MatchBook program regardless of whether the Promotional List Price is within the maximum and minimum list price requirements for the 70% royalty option.

ii. Price Matching Determinations : If you notify us through Contact Us (by selecting the topic Pricing & Royalties – Price Matching) that you believe we have made an error in price-matching your Digital Book, we will review the issue and make best efforts to correct the error, if any, going forward as soon as practicable.
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