Showing posts with label Kindle Press. Show all posts
Showing posts with label Kindle Press. Show all posts

Sunday, August 21, 2016

My eBook Strategy

I’m entering the publishing business a step at a time. My first toe in the water was after Ant Farm successfully weathered the Kindle Scout process and Amazon (their Kindle Press group) agreed to publish the eBook. Rather than search for a publisher to produce a print version of the book, I decided to do it myself. I’ve documented that process previously as well as provided my analysis of why I use both CreateSpace (for Amazon sales) and IngramSpark (for all others).

When I took back the publishing rights to Bad Policy from Barking Rain Press, I used the paperback template I had prepared for Ant Farm with a few minor tweaks. I did have to produce eBooks for the first time, and since it had been out for three years, I chose to start by making it available for Kindle only. Why?

Kindle Only or ePub as well?

Living exclusively within the Kindle universe provides two major advantages: (1) The book is included in Kindle Unlimited and the Kindle Lending Library, (2) For a few days within each 90-day renewal period I can put the book on deep discount and still retain the 70% commission, (rather than the 35% commission Amazon usually pays on books priced under $2.99), or alternately, during those days I can offer it for free. The disadvantage is those people who prefer to read electronically using ePub files either don’t get the book or they need to figure out a way to read Kindle files on one of their devices.

While Bad Policy was under Barking Rain Press’s control, it earned over 80% of its royalties from Amazon. The rest came from Apple, Barnes & Noble, Kobo, and others. I gambled that I would balance those lost non-Kindle sales with the extra royalties from Kindle Unlimited.

It’s still early days, but so far Kindle Unlimited has provided 20% of my eBook royalties since I took over from Barking Rain Press. The first promotion I ran for the Kindle eBook met my expectations.

Fast forward to Doubtful Relations. My print strategy remains the same with a minor variation. I had read multiple discussions on the topic of whether white pages or cream pages were better. Everyone had opinions, both sides’ arguments had merit, and people seemed to be evenly split on the issue.

I constructed a Facebook poll to test the question; it also resulted in a 50/50 split on preference. I decided to print CreateSpace with white pages and IngramSpark with cream. When people buy directly from me at bookstore and other events, I’ll offer them a choice and find out what happens. Of course, those who buy on Amazon will get white; those from a bookstore or other online retailer will get cream. Who knows how this will turn out, but it costs me nothing to run the experiment.

For the eBook, I chose the wide distribution approach rather than listing it only with Amazon. I figured most new readers would come to the republication of Bad Policy having read Ant Farm (Kindle only) or through a promotion targeted to Kindle readers. Doubtful Relations, however, follows Cabin Fever, which is available from Barking Rain Press in all formats. People who enjoyed Cabin Fever will likely prefer to read it in whatever format they chose previously (about 15% of eBook royalties weren’t from Amazon). I can change to a Kindle-only strategy sometime in the future to pick up Kindle Unlimited readers, but I don’t want to lose the Nook, Kobo, and iBook readers to the series.


As a special thank you, I’ll send anyone who orders Doubtful Relations by the end of August (and sends me evidence of their purchase) a free new Seamus McCree short story "Power of Attorney" you can read electronically (Kindle, ePub or PDF). You can conveniently find “buy” links to a variety of online retailers on http://jamesmjackson.com/Novels/doubtful-relations.html.

Sunday, November 22, 2015

Amazon and eBook Pricing

It will come as no surprise to any author who pays attention to Amazon and their pricing that they have a strong preference for ebooks priced between $2.99 and $9.99, inclusive. For books using their KDP program and priced in that range, they pay 70% royalties to authors. They pay only 35% for books priced $10.00 or more and those under $2.99.

An independent observer of the digital marketplace might well suggest that Amazon (or any electronic retailer) should earn the same amount on any ebook sold regardless of its price. They have the same infrastructure costs for all ebooks, regardless of whether they are priced at $0.99, $5.00, or $12.99. Retailers traditionally make money as a percentage markup over cost. Yet Amazon has decided to take a whopping 65% for books priced “too high” or “too low.” They do it because with their huge market share of ebooks, they can. They also do it to vex publishers and attempt to sway them to their beliefs about the book market.

Amazon not only sells books; it is a publisher with a plethora of imprints. My Ant Farm is published by one of the imprints, Kindle Press. Kindle Press is an ebook-only publisher, choosing books through the Kindle Scout nomination process. (This blog explains Kindle Scout.) Kindle Press authors range from debut to mid-list. How would Amazon choose to price these books given their contracts provide authors with 50% royalties?

Kindle Press books have been listed at $2.99, $3.49, and $3.99. The chart below demonstrates the somewhat loose relationship between price and page count. Note that sometimes Kindle Press discounts selected books to $1.99 as part of a promotion.




Kindle Press authors generally have low name recognition. I wondered how Amazon imprints price books for the bigger names. (All prices are from early September when I collected research for this blog.) I checked out three titles. Robert Dugoni had Her Final Breath in preorder. His previous book was an Amazon #1 seller. The Kindle book was priced at $5.99 (paperback was listed at $15.95, discounted to $11.90). The Good Neighbor by AJ Banner was the current Kindle #1 seller. Its ebook was priced at $4.99 and the paperback listed for $14.95, discounted to $8.26. PJ Parrish had She’s Not There in pre-release. The ebook was $4.99 and paperback was listed at $15.95, discounted to $11.99.

Given how long the books are, if these folks were Kindle Press authors, Dugoni’s and Parrish’s ebooks would sell for $3.99 and Banner for $2.99. The premium Amazon attaches for their better known authors based on this sample is $1.00-$2.00 over Kindle Press pricing.

Not so for big 5 publishers. On Amazon, Sue Grafton’s X was available in hardcover for $17.63 and $14.99 for the ebook. Sara Paretsky’s Brush Back was $14.64 for the hardcover and $13.99 for the ebook. Louise Penny’s The Nature of the Beast was $16.76 hardcover and $14.99 for the ebook. Their “premium price” over my estimated Kindle Press ebook prices was $10-$11.

What’s Happening with the Supply/Demand curve?

How did the various groups of books sell?

When it comes to the very top name authors, the high ebook prices do not seem to adversely affect sales ranking too much. Grafton’s X was ranked #12 when I wrote this sentence. [Nearly three months after the book’s release it is still #508.] Lee Child’s Make Me was #13. [Two and a half months after release it is still #179.] Louise Penny’s The Nature of the Beast was #79. [Three months after release it is #1,457.] But Paretsky’s Brush Back was “only” #1,626. [Four months after release finds it at 10,936.]

In comparison, Dugoni’s preorder for Her Final Breath was 1,388. [Two months after release it is #179.] But P.J. Parrish’s preorder of She’s Not There was 17,259. [Two and a half months after release it sits at #1,533.]

The Kindle Press authors do not sell as well. About a third have had rankings under 2,000 sometime during their book’s life. Another 20% or so have had rankings under 10,000, leaving well over half who have never cracked the 10,000 level.

The supply and demand curve for ebooks is not a single curve. Readers are willing to pay a substantial premium—$10-$11—for top best sellers. Their brands apparently justify the extra cost for readers. And clearly, the Kindle Press authors do not sell as well as at least some of their other Amazon Imprint brethren, which makes pricing differences between Amazon imprints logical.

Where do relatively unknown self-published authors fit? Based on Amazon’s apparent pricing model, I speculate that $2.99 might be a reasonable price. It’s the lowest price that still provides the author with a 70% take, yet it is still probably low enough for readers who have somehow found the book to make an impulse purchase.

Indie authors, I’m curious: at what price do you list your books, and what is your reasoning?


~ Jim

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