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Stone and Silt
by Harvey Chute

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Big Al's Books & Pals 2014 Readers' Choice Awards: Young Adult Nominee

A ruthless murder and a stolen shipment of gold.

At school, sixteen-year-old Nikaia Wales endures the taunts of bullies who call her a “half-breed.” At home, she worries about how her family will react if she reveals her growing feelings for the quiet boy next door.

Those are soon the least of her troubles. Nikaia discovers a hidden cache of gold, and when police find a corpse nearby, her father becomes a suspect. Worse, Elias Doyle is circling, hungry to avenge his brother’s death.

Nikaia desperately searches for clues to save her father. In her quest to find the killer, she learns about the power of family, friendship, and young love....

Author Topic: What do you think about KDP digital delivery costs?  (Read 912 times)  

Offline ilamont

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What do you think about KDP digital delivery costs?
« on: February 06, 2014, 02:10:27 PM »
I don't know if KDP's digital delivery fees are an issue for many of you, but for those authors who publish ebooks that are exceptionally long or have lots of images and receive the 70% royalty rate, you probably have encountered them. Here's how they break down on the official KDP royalty page:

Quote
Delivery Costs are equal to the number of megabytes we determine your Digital Book file contains, multiplied by the Delivery Cost rate listed below.

Amazon.com: US $0.15/MB
India on Amazon.com: INR ₹7/MB
Amazon CA: CAD $0.15/MB
Brazil: BRL R$0.30/MB
Amazon.co.uk: UK 0.10/MB
Amazon.de: 0,12/MB
Amazon.fr: 0,12/MB
Amazon.es: 0,12/MB
Amazon.it: 0,12/MB
Amazon.co.jp: 1/MB
Amazon.com.mx: MXN $1/MB
Amazon.com.au: AUD $0.15/MB

We will round file sizes up to the nearest kilobyte. The minimum Delivery Cost for a Digital Book will be US$0.01 for sales in US Dollars, INR₹1 for sales in Indian Rupees, CAD$0.01 for sales in CAD Dollars, 0.01 for sales in GB Pounds, 1 in JPY, R$0.01 for sales in Brazilian Reais, $1 MXN for sales in Mexican Pesos, AUD $0.01 for sales in Australian Dollars, and 0.01 for sales in Euros, regardless of file size.  For sales in JPY, we will not deduct any Delivery Cost for books 10 MB or greater.

On the monthly sales spreadsheet I download from KDP, the fees are shown as an average. On one of my longer titles, Google Drive & Docs In 30 Minutes, it worked out to about 46 cents per ebook sold in November 2013. In December 2012 it was 70 cents for the same title -- I am not sure if the decrease is related to a drop in price of the book (which used to be $8.99, now it's 4.99) or some other factor, but regardless it cuts my royalty payments by more than 10% on that title.

I understand that Amazon has to pay for Whispernet connectivity, but isn't that going away as the older Kindles are replaced and wifi gains in use? Or are there other delivery charges (unrelated to Whispernet) that longer/larger ebooks should be subject to?

- Ian     

Offline Terrence OBrien

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Re: What do you think about KDP digital delivery costs?
« Reply #1 on: February 06, 2014, 02:32:43 PM »
I think it is a mistake to think there is some relation between the fee and delivery. I simply look at it as a selling fee.  I just add it to Amazon's 30% and don't pay attention to what they call it.
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Offline Vaalingrade

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Re: What do you think about KDP digital delivery costs?
« Reply #2 on: February 06, 2014, 02:39:14 PM »
It's a hilarious ripoff. At worst, one GB (1024MB) costs a dollar, so it really amounts to fudging their take of the book sales by a couple percentage points.

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Offline Terrence OBrien

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Re: What do you think about KDP digital delivery costs?
« Reply #3 on: February 06, 2014, 02:47:23 PM »
Ripoff? I doubt it. That can only be sustained if we insist the delivery cost is limited to certain marginal costs, and insist on defining the otger guy's cost structure for him. But there is no basis for that. They can easily say it includes all kinds of thiings necrssary for delivery. Computers, buildings, software development, etc.
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Offline chrisanthropic

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Re: What do you think about KDP digital delivery costs?
« Reply #4 on: February 06, 2014, 02:48:00 PM »
I can't tell you what I think of them because those words don't show up in this forum.  As someone whose day job is tied to ensuring reliable delivery of streaming content via the web I understand the pricing involved and find the charged absurd.  The worst part is that if they just called it something else I wouldn't care.
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Offline Tia K

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Re: What do you think about KDP digital delivery costs?
« Reply #5 on: February 06, 2014, 02:52:43 PM »
I can't tell you what I think of them because those words don't show up in this forum.  As someone whose day job is tied to ensuring reliable delivery of streaming content via the web I understand the pricing involved and find the charged absurd.  The worst part is that if they just called it something else I wouldn't care.
good point. heh

Offline Lefty

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Re: What do you think about KDP digital delivery costs?
« Reply #6 on: February 06, 2014, 02:58:31 PM »
Maybe they'll waive the delivery fee by instituting a $100 upload fee. Or based on the file size.

Offline PhoenixS

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Re: What do you think about KDP digital delivery costs?
« Reply #7 on: February 06, 2014, 03:29:02 PM »
I've debated this before. Often. And with some of the same folk here ;). Here's the latest...

http://www.kboards.com/index.php/topic,176585.msg2491665.html#msg2491665

Offline Terrence OBrien

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Re: What do you think about KDP digital delivery costs?
« Reply #8 on: February 06, 2014, 03:35:24 PM »
I can't tell you what I think of them because those words don't show up in this forum.  As someone whose day job is tied to ensuring reliable delivery of streaming content via the web I understand the pricing involved and find the charged absurd.  The worst part is that if they just called it something else I wouldn't care.

What costs are covered by the Amazon delivery charge?
« Last Edit: February 06, 2014, 03:40:44 PM by Terrence OBrien »
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Offline Sapphire

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Re: What do you think about KDP digital delivery costs?
« Reply #9 on: February 06, 2014, 03:36:43 PM »
Why is this a point of discussion? It is a cost of doing business with Amazon, and none of us has any say in it. Publish on Amazon and they collect a fee. Publish somewhere else instead and you don't have to deal with it. Which is your choice?


Offline Rayven T. Hill

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Re: What do you think about KDP digital delivery costs?
« Reply #10 on: February 06, 2014, 03:39:31 PM »
If they called ia an administration fee it would be more accurate.
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Offline X. Aratare

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Re: What do you think about KDP digital delivery costs?
« Reply #11 on: February 06, 2014, 03:41:30 PM »
For the comic books we put together, the delivery charge PLUS their 30% cut is steep.  They likely make more than we do per book sold.  B&N only takes a straight 40% cut so we make more there.  I would like Amazon to do the same.  We literally have to cut our books down in size in terms of pages to sell them at something like a reasonable profit.  It's frustrating, because we can't do bundles of books at all either.

Offline Vaalingrade

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Re: What do you think about KDP digital delivery costs?
« Reply #12 on: February 06, 2014, 04:11:36 PM »
They can easily say it includes all kinds of thiings necrssary for delivery. Computers, buildings, software development, etc.

So blatant dishonesty then.

Gotcha.

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Offline Greg Strandberg

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Re: What do you think about KDP digital delivery costs?
« Reply #13 on: February 06, 2014, 04:39:26 PM »
I have quite a few non-fiction books with pictures (some with more than 100) so I get a little bite out of my profits.  I don't like it much, but I do usually charge a bit more for those books.

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Offline Terrence OBrien

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Re: What do you think about KDP digital delivery costs?
« Reply #14 on: February 06, 2014, 05:21:57 PM »
So blatant dishonesty then.

Gotcha.

No dishonesty. People simply decide what the other guy has included in a line item without any evidence. Then they conclude he is dishonest based on their error. Can you tell us what is included in the delivery charge?
« Last Edit: February 06, 2014, 05:23:49 PM by Terrence OBrien »
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Offline Tommie Lyn

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Re: What do you think about KDP digital delivery costs?
« Reply #15 on: February 06, 2014, 05:22:39 PM »
Bandwidth isn't free.
 

Offline Usedtoposthere

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Re: What do you think about KDP digital delivery costs?
« Reply #16 on: February 06, 2014, 05:31:03 PM »
Why is this a point of discussion? It is a cost of doing business with Amazon, and none of us has any say in it. Publish on Amazon and they collect a fee. Publish somewhere else instead and you don't have to deal with it. Which is your choice?
Ditto. There are things to get upset about, but the things I can't change, like Amazon's policies on whatever, aren't among them.

I would assume that anybody for whom the delivery cost is an issue would price to take that into account.

Offline Terrence OBrien

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Re: What do you think about KDP digital delivery costs?
« Reply #17 on: February 06, 2014, 05:36:38 PM »
Quote
I would assume that anybody for whom the delivery cost is an issue would price to take that into account.

God Bless price elasticity.
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Offline Vaalingrade

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Re: What do you think about KDP digital delivery costs?
« Reply #18 on: February 06, 2014, 05:54:22 PM »
Bandwidth isn't free.

It is, however, embarrassingly cheap.

Especially when you're the server provider for a massive chunk of both the corporate and government world. Seriously, Amazon isn't even eating the exorbitant markup that makes bandwidth cast as much as it does.

And this is just storage and transmission. The real financial strain you get with servers is CPU cycles--except books aren't software that runs on the server.

It's like if your local pizza place charged a delivery fee that equaled an entire year's worth of insurance for the delivery guy--only they billed it to the guy that made the pizza.

This is one of those underhanded corporate practices that they keep getting away with because they know no one's going to fight back. If they wanted to make the nickel the honest way, they would have just taken 31% instead of putting the sneaky hand in the cookie jar.

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Offline Lefty

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Re: What do you think about KDP digital delivery costs?
« Reply #19 on: February 06, 2014, 07:05:35 PM »
Maybe they have to make up for the costs of all the free books?

Offline Terrence OBrien

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Re: What do you think about KDP digital delivery costs?
« Reply #20 on: February 06, 2014, 07:09:47 PM »
Quote
It's like if your local pizza place charged a delivery fee that equaled an entire year's worth of insurance for the delivery guy--only they billed it to the guy that made the pizza.

It would be a stronger argument to say the insurance cost for the year was amortized over deliveries for the year. That type of accounting is very common and appropriate. It directly assigns and distributes costs over the activity they support. To make it closer to the Amazon system, they would amortize costs over delivery miles. It would also be reasonable to amortize gas, vehicle depreciation, maintenance, etc.

Quote
This is one of those underhanded corporate practices that they keep getting away with because they know no one's going to fight back. If they wanted to make the nickel the honest way, they would have just taken 31% instead of putting the sneaky hand in the cookie jar.

There is nothing sneaky about it. It is in the open. Nobody fights back because people who understand the situation know there is no issue.
« Last Edit: February 06, 2014, 07:21:53 PM by Terrence OBrien »
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My Web Site: www.OBrienTerrence.com
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Offline Tommie Lyn

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Re: What do you think about KDP digital delivery costs?
« Reply #21 on: February 07, 2014, 03:26:00 AM »
There is nothing sneaky about it. It is in the open. Nobody fights back because people who understand the situation know there is no issue.

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Re: What do you think about KDP digital delivery costs?
« Reply #22 on: February 07, 2014, 05:37:07 AM »
Readers in SA and elsewhere are charged an extra $2 for the Whispernet charge. My 99c books cost $2.99 in SA and with the exchange rate now R11 =$1 it is quite costly.

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Offline ElHawk

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Re: What do you think about KDP digital delivery costs?
« Reply #23 on: February 07, 2014, 05:39:36 AM »
I think: tax write-off.


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Offline jackz4000

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Re: What do you think about KDP digital delivery costs?
« Reply #24 on: February 07, 2014, 05:52:46 AM »
I look at it as a cost of doing business for me--no big deal. Bigger files cost more. All those Free books have no charge and that adds up.