Royalties

Online bookstores apply different sales models: Wholesale - Agency - Lending and Subscriptions (the latter two are more or less the same: in both there is no download, because the reader reads from the app but does not download the files; it is a read in streaming and the payment of the reveneue to the author depends on the reading level of each article - eg: the more a book is read, the more I pay you, within a certain limit).

The Agency model

According to the Agency model, the bookshop retains 30% of the cover price which is set by the independent publisher / author.
Most of the active bookstores apply the Agency model, with the exception of those indicated further on in the Wholesale section.

The Wholesale model

According to the Wholesale (or Reseller) model:

1. the publisher / author establishes the so-called list price;
2. the store establishes at what price to sell the book to its customers, starting from the list price chosen by the publisher / author;
3. for each sale the publisher / author receives a percentage of the list price, regardless of the sale price chosen by the store for the end customer.

Below is the list of stores that apply the Wholesale sales model

  • Google Play

Withholds a commission equal to 30% of the list price in all countries of the world. Your profit on Google sales is therefore 60%. Exceptions are South Korea, the Philippines, Japan, Hong Kong, India, Indonesia, Singapore, Taiwan, Thailand and Vietnam where the Google commission applied is 48%.

  • Kobo

If the sale is made from a country outside the European Economic Area, the store retains a commission equal to 50% of the list price.

Amazon sales models

Sales on Amazon comply with the different conditions of sale for authors and publishers. You can learn more in this Help Center article.

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