Tag Archives: calculation

KDP pricing vs IngramSpark pricing

I’ve just been speaking to IngramSpark [Australia] and discovered that Ingram only charge for the actual print cost of a paperback!!!!

-dance-

No idea why that’s such a big deal?

Allow me to explain. 🙂

When you print [and sell] your paperback through KDP, your royalty is calculated as the difference between the sale price of the book and two things:

  1. the print cost
  2. the cost of distributing [i.e. selling] through Amazon

Amazon’s distribution cost will always be 40% of the List Price [the sale price], but the print cost will vary depending on what, and how, you print. For example, black & white costs much less than colour.

To explain how distribution and print cost affect royalty, I’m cheating a bit and taking the next bit straight out of my KDP how-to book:

Royalty = (List Price – 40% [to Amazon]) – Printing

Or to put it another way, when your paperback sells on Amazon:

  1. Amazon takes its share – 40% – from the total sale price,
  2. This leaves 60% of the total sale price.
  3. From this 60%, Amazon takes the actual print costs.
  4. Whatever is left over is your royalty.

To illustrate this point, let’s say the List Price of a book is $10 and the print cost is $5.

  1. From that $10, Amazon takes $4 – i.e. 40%.
  2. That leaves $6.
  3. From that $6, Amazon takes $5 – i.e. the cost of the printing.
  4. That then leaves $1 as the royalty owed to the author.

 [10 – 4] – 5 = 1

Note: back when you had the option of selling your paperback directly through CreateSpace, the cost of selling through CS was 20% rather than the 40% owed to Amazon, but there was still a charge.

Knowing how Amazon and CreateSpace calculate royalties, I assumed that IngramSpark must have a distribution cost factored in there somewhere as well. But they don’t, and I couldn’t be happier! IngramSpark will distributre your paperback worldwide without charging for the distribution. All they charge is the print cost. Suddenly, the setup fee and the revision fee don’t feel so bad any more.

Until I see exactly how Amazon and IngramSpark function together, I won’t be completely sure of my figures, but I am now itching to try it and see. And of course, you’ll be the first to know what I’ve learned. 😀

cheers

Meeks

 


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