Amazon have finally followed through on the new royalty option they first mentioned back in January.
Before I continue, I want to point out the time that Amazon posted this release (about 9AM EST). That's very unusual. I've been getting Amazon press releases for the past couple years now, and they usually post a release just after midnight my time. The fact they didn't post this release at the usual time might be a sign of how rattled they are. I can give you 2 recent examples.
Monday of this week, Amazon announced the new iPad features (release was posted around midnight) and the Android app (release was posted mid afternoon). The first was a planned announcement; the second was a response to what the financial analyst said about Amazon. And last week Amazon dropped the price of the Kindle (release was posted barley 7 hours after the Nook announcement).
The royalty offer is pretty simple:
- title must be in copyright
- Amazon has to get the best price of any format (no more than 80% of lowest selling option)
- title needs to be made available for sale in all geographies for which the author or publisher has rights
- list price must be between $2.99 and $9.99
And this offer is 70% - delivery cost.
Delivery costs are based on file size, and pricing is set at $0.15/MB. At today's median DTP file size of 368KB, delivery costs would be less than $0.06 per unit sold. For example, on an $8.99 book an author would make $3.15 with the standard option and $6.25 with the new 70 percent option. This new option, first announced in January 2010, will be in addition to and will not replace the existing DTP standard royalty option.