Amazon Lowers Minimum Price Threshold for UK Kindle Store
A little over two months ago the UK stopped collecting VAT on ebooks sold in that country, and I have just learned that Amazon may have lowered the UK Kindle Store’s minimum price threshold in response.
Previously Amazon had required a minimum retail price of £0.99 for all ebooks in the Kindle Store. Any ebook priced between £0.99 and £1.99 earned a 35% royalty, and ebooks priced between £2.00 and £9.99 earned a 70% royalty (less Amazon’s punitive "delivery" fees).
Under the new rules, the minimum thresholds has been lowered to £0.77 and £1.77, respectively. (The £9.99 threshold remains unchanged.)
If you have not adjusted your prices in the Kindle Store, now might be a good time to do so. (To be honest I thought Amazon had taken care of that automatically when the change in VAT went through.)
When I first heard about the change, I thought Amazon was responding to the devaluation of the pound. But after talking to Dan Holloway on Twitter, I have to agree that this change is probably the result of VAT cancellation.
Will you be lowering your prices in response?
image by Sean MacEntee via Flickr
Paul Durrant July 10, 2020 um 2:38 am
KDP publishers set the retail price (including any VAT). Amazon can’t change the retail price without the publisher’s agreement.
With VAT, the prices to the consumer are always displayed with the VAT already included.