The Brutal Truth of Author Earnings on Amazon

Imagine selling $100,000 in books on Amazon. Sounds like a dream come true, right? But what if I told you that after Amazon takes its cut, you're left with only $35,000? That's a whopping 65% commission. WTF, right?

Let's break it down. Say you sell 10,000 copies of your book at $10 each. That's $100,000 in revenue. But Amazon takes 30% for its cut, leaving you with $70,000. And then, there are the hidden fees - delivery costs, which can range from $2.50 to $5 per book, depending on the format and location. Let's assume an average delivery cost of $3.50 per book. That's another $35,000 gone (10,000 books * $3.50 per book). Suddenly, your $100,000 in sales is down to $35,000.

The Amazon Math Nobody Talks About

Here are the exact calculations:

• $100,000 (revenue) - $30,000 (30% Amazon commission) = $70,000
• $70,000 - $35,000 (delivery costs) = $35,000

That's a 65% effective commission rate. You're essentially paying Amazon $65,000 for the privilege of selling your book on their platform.

Why "Exposure" Doesn't Pay Rent

We've all heard the myth that being on Amazon is all about exposure. But what does that really mean? Let's look at some real data on conversion rates. According to Amazon's own numbers, the average conversion rate for books is around 2-3%. That means for every 100 people who see your book, only 2-3 will actually buy it. And of those 2-3 buyers, you're only taking home 35% of the revenue.

The 85% Alternative

So, what's the alternative? What if you could keep 85% of your revenue, instead of 35%? That's a difference of $50,000 on a $100,000 sale (85% of $100,000 = $85,000 vs 35% of $100,000 = $35,000). That's life-changing.

Look, this is literally why we built AuthorKit - to help authors keep more of their hard-earned cash. By selling direct, you can avoid the hidden fees and commission rates that eat into your earnings.

The Author Tax

Let's call this phenomenon The Author Tax - what you pay for the convenience of being on Amazon versus the ownership of selling direct. It's a trade-off, really. Do you want the ease of Amazon's platform, or do you want to keep more of your money?

The compound effect of keeping 85% vs 35% is staggering. Over time, that extra 50% can add up to hundreds of thousands of dollars. It's not just about the money, though - it's about the freedom to create, to write, and to build a real business.

Reframe: Amazon Isn't the Enemy. But Paying 65% Is.

So, what can you do about it? Start by understanding the math. Know what you're getting into when you sign up for Amazon's platform. And then, explore your options. Look into selling direct, either through your own website or through platforms like AuthorKit.

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