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  • Writer's pictureTullipStudio Team

TIME TO GET PAID BY AMAZON

Amazon's Kindle Direct Publishing (KDP) platform has revolutionized the publishing

industry, offering authors a direct route to publishing their books and reaching millions of readers worldwide. One of the critical aspects for authors is understanding how they get paid through KDP. In this article, we'll delve into the intricacies of KDP payment system, exploring its mechanisms, timelines, and considerations for authors.


How KDP Payment Works?


Royalties: When you publish a book through KDP, you earn royalties on sales. These royalties are calculated based on the list price you set for your book and vary depending on the pricing option you choose: 35% royalty option or 70% royalty option.

  • 35% Royalty Option: If your eBook is priced lower than $2.99 or higher than $9.99, or if you choose the 35% royalty option for certain territories, you'll receive a 35% royalty on the sales.

  • 70% Royalty Option: For eBooks priced between $2.99 and $9.99, and meeting other eligibility criteria, you can opt for a 70% royalty rate.

It's essential to consider the impact of taxes and delivery costs on your royalties, especially when pricing your books.


Payment Threshold: Before Amazon initiates a payment, your royalties must reach a

certain threshold. For most authors, this threshold is $100 for electronic fund transfers (EFT) and $100 for checks. Once your accrued royalties surpass this threshold, Amazon will process your payment.


Payment Methods: Amazon offers various payment methods for authors to receive their royalties, including Electronic Fund Transfer (EFT) for most countries and checks for some regions where EFT isn't available.

  • Electronic Fund Transfer (EFT): This is the most common method, offering a quick and convenient way to receive payments directly into your bank account. You'll need to provide your banking information through the KDP dashboard to set up EFT payments.

  • Checks: If EFT isn't available in your country or if you prefer receiving payments via checks, you can opt for this method. However, checks typically take longer to process and may involve additional fees for currency conversion or processing.

Payment Timelines: Amazon has a monthly payment cycle, but the timing of payments can vary based on several factors:

  • Sales Reporting: Amazon typically reports sales and updates royalty earnings approximately two months after the sales occur. For example, royalties earned in January would be reported in March.

  • Payment Processing: After sales are reported, Amazon processes payments within 60 days. So, royalties earned in January and reported in March would be paid out by May.

  • Payment Delivery: The time it takes for payments to reach your account depends on your chosen payment method. EFT payments are usually faster than checks, which may take additional time for processing and delivery.

Conclusion

Understanding how KDP pays authors is crucial for anyone considering self-publishing

through the platform. By grasping the royalty options, payment thresholds, methods, and timelines, authors can effectively plan their finances and optimize their publishing strategy. While KDP provides a transparent and accessible system for earning royalties, authors should stay informed about any updates or changes to the payment process to ensure a seamless publishing experience.

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