How to Price Your Ebook on Amazon: A Self-Publishing Guide for New Indie Authors
What’s the perfect price for your ebook on Amazon? That’s a question every new indie author eventually faces, usually right after uploading their manuscript and taking a victory lap around the house.
The truth is, ebook pricing is more than just a number—it’s a strategic decision that affects discoverability, royalties, and long-term success. Set the price too low and you may undermine your value. Too high and you might scare away readers.
In this guide, we’ll break down everything you need to know about pricing your ebook on Amazon. We’ll talk royalty rates, fees, Kindle Unlimited, and even how to sidestep Amazon’s price-matching bots. And yes, we’ll loop in ScribeCount—a tool that can help you track and analyze your pricing performance across platforms.
By the end, you’ll have a firm grip on how pricing works and how to make it work for you.
Ebook Pricing on Amazon: The Basics
When you upload your ebook to Amazon via Kindle Direct Publishing (KDP), you’re asked to set a price. This price determines two critical things:
What your readers pay.
What you earn in royalties.
Amazon allows authors to choose between two royalty rates for ebooks: 35% or 70%. However, there are specific eligibility requirements for the 70% rate.
Royalty Rates Explained
Here’s how the royalty tiers break down:
70% Royalty Option: You must price your ebook between $2.99 and $9.99 (USD) and meet a few technical requirements.
35% Royalty Option: Applies if your ebook is priced outside that $2.99-$9.99 range or sold in countries not eligible for the 70% rate.
ScribeCount users can easily track how much income comes from each royalty tier, making it simple to evaluate the financial impact of pricing decisions.
Fees and VAT Taxes
Even at 70%, Amazon deducts a delivery fee based on file size (usually $0.15 per MB in the U.S.). So if your ebook is 5MB, you’re losing $0.75 per sale just to file delivery. Big images? They cost you.
In some territories, VAT (Value Added Tax) is automatically deducted from your list price, which reduces your royalty. You can’t avoid it, but you can account for it.
Example: A book priced at $2.99 might only earn you $2.04–$2.09 depending on delivery costs and VAT.
International Territories and Currency Exchange
Amazon sells your ebook worldwide. You set your price in USD, and Amazon converts it to local currencies for customers in places like the UK, Canada, Australia, and India. They also let you manually adjust pricing in each territory.
Keep in mind:
Currency exchange rates fluctuate.
Some countries offer only 35% royalties.
Different taxes may apply in different countries.
ScribeCount provides territory-based sales data, so you can assess how your pricing performs globally.
Amazon’s Price Matching Policy
Amazon keeps a close eye on your ebook’s price across the internet. If they find it listed cheaper elsewhere, they may automatically lower the Amazon price to match it.
Want to sell your book for less on your website? You can—if you use a discount code instead of listing a lower price outright. This avoids triggering price matching.
A deeper dive on Direct Sales and discounting strategies can be found in the Author Resources section on ScribeCount.
Sample Pricing Scenarios
Let’s break down what you’d earn at different price points under the 70% royalty model:
$0.99 – Not eligible for 70%, earns 35% = $0.35
$2.99 – Eligible for 70%, minus delivery, earns approx. $2.04
$5.99 – Eligible for 70%, earns approx. $4.10
$16.99 – Not eligible for 70%, earns 35% = $5.94
Factors to Consider When Pricing Your Ebook
Choosing your ebook price isn’t just about royalties. Here’s what to think about:
Your Personal Goals: Are you focused on exposure, reviews, or revenue?
Genre Norms: Romance and mystery often sell at $2.99-$4.99. Nonfiction may command more.
Reader Expectations: Fans expect different prices depending on format and genre.
Book Length: A 120-page novella may not support a $9.99 price tag.
Perceived Value: Does your cover and blurb look premium?
Series Position: First-in-series often priced free or at $0.99 to lure readers in.
Marketing Strategy: Some authors price low to build audience; others hold firm and use ads.
Email List Size: Bigger list = more pricing flexibility.
Getting Reviews: Cheaper books are easier to give away or ask for reviews.
If you plan to run discounts, start at a higher price to leave room for promotional drops later.
Pricing Books in Kindle Unlimited (KDP Select)
When you enroll in KDP Select, your book is included in Kindle Unlimited (KU) and Amazon Prime Reading. Readers pay a subscription fee, and you earn money per page read (around $0.004–$0.005/page).
While KU reads don’t generate royalties from your listed price, that price still matters because:
It impacts perceived value.
It affects visibility during promotions.
Books in KU are exclusive to Amazon, so you can’t sell them on other retailers.
More on Kindle Unlimited economics is covered in our separate article: "How Kindle Unlimited Works for Indie Authors."
Amazon Promotions and Pricing
Amazon offers two key promo tools:
Kindle Countdown Deals (only for KDP Select books)
Free Book Promotions (also exclusive to KDP Select)
You can schedule discounts and track how they affect sales and visibility.
Outside of these, pricing can also be used in external promotions through BookBub, newsletter swaps, and social media.
ScribeCount lets you correlate promotions with sales spikes so you can see exactly what worked.
ScribeCount Tools
Subscribers to ScribeCount have a host of tools to help them determine the best price for their books as well as how much those books will earn. They include:
A Full Read / Full Sale Calculator: This tells you how many page-reads your book will need to rack up in Kindle Unlimited to equal a full sale of that book.
Kenp Royalty Estimator: This tool takes in your price and calculates the royalty rate for every Amazon store/currency.
KDP Print Royalty Calculator: This tool allows you to estimate your return at various prices and marketplaces. VAT is automatically applied.
KDP EBook Royalty Calculator: This tool allows you to estimate your return at various prices and marketplaces. VAT is automatically applied.
Book Sales Estimator: This tool provides an estimate of the number of sales needed to reach a certain best seller rank at Amazon.
KENP Read Royalty Calculator: This feature allows you to see the return on page reads at various KENP rates.
Cost Calculator: This feature allows you to input all the costs associated with creating your book and then calculates the number of sales needed to recoup that expense.
Conclusion
There’s no one-size-fits-all approach to pricing your ebook on Amazon. Every author’s goals and strategies are different. But by understanding royalty structures, territory rules, delivery fees, and marketing context, you’ll be in a strong position to make smart choices.
Here’s a recap:
Aim for the 70% royalty tier when possible.
Use $2.99–$5.99 as your experimental sweet spot.
Consider genre, goals, and book length.
Don’t fear experimentation.
Use tools like ScribeCount to track results and make data-driven decisions.
So take the time to price thoughtfully. Your book—and your royalties—deserve it.
