What You Need to Know
Both Ingram and KDP have announced changes in pricing in recent weeks.
Changes at Ingram
The good news is that Ingram is getting rid of set up fees for both print and ebooks. This applies to authors using both Ingram Spark and Ingram Lightning Source. This is a substantial change which can save authors $49 or more on the basic price of publishing a book. In addition, there will be no charges for submitting revisions for the first 60 days after a title has been approved for production. After that, revision fees will be charged at approximately $25 per upload (please check on Ingram for your specific charges as this can change and it also can depend on how you make and upload any revisions.)
While this sounds great, Ingram is adding a new fee that authors need to be aware of. This new “market access fee” will be charged for every print book sold through its global distribution network. The fee is 1 percent of the list price. Ingram uses this example: “for a $20 book, the fee will be 20 cents.” This can add up to a significant difference in royalties if you sell a number of books through Ingram.
The Bottom Line
So exactly what does this mean for you, the author? It makes it much less expensive to set up your book on Ingram. I always recommend authors set up their paper books only on both Ingram and KDP. While you may receive slightly less in royalties, the free set up means that unless you sell a large number of books, the costs of Ingram is now reduced.
Authors should keep that 60-day correction window in mind and make sure they make any changes before that date.
Changes at Amazon KDP
Beginning June 20, KDP is making changes to printing costs as a result of increases in both labor and materials. The minimum list price for paper and hardback print books will increase. A chart showing the new costs can be found at https://kdp.amazon.com/en_US/help/topic/GPGVYM9KWTYLD2GD#newcosts
The changes will affect the pricing for both proof books and author copies. Authors’ new minimum list price decrease or increase depending on the book’s trim size, ink type, and marketplace. These changes may affect royalties. If your list price is below the new minimum list price, you will receive zero royalties. If you make updates to an existing print book after June 20, it will need to comply with the new minimum list price in order to publish the updates.
Amazon will be updating its printing costs and royalty calculator https://kdp.amazon.com/en_US/help/topic/GSQF43YAMUPFTMSP by June 20.
The Bottom Line
Authors need to check the pricing on their old books and consider increasing it. KDP promises to have a downloadable list on your Bookshelf of all books that fall below the new minimum list price and earn zero royalties after the printing cost changes take effect. If you do not have a file available on your Bookshelf, it means none of your books fall below the new minimum list price, according to Amazon.
Amazon will have an option for a “bulk pricing update” on your bookshelf. Be advised Amazon is saying to may take several weeks for these changes to be made. Afterall, this change will affect millions of books worldwide.
The new printing costs will affect royalty payments. Your printing costs are deducted from your royalty. So, an increase or decrease in the printing cost will cause your royalty amount to change.
What to Do Right Now
For Ingram, be aware of the new changes in uploading corrections. Try to make all corrections to a manuscript before the 60-day deadline.
For KDP, check now that you will still receive royalties under the new printing cost guidelines.
For Both Sites, now is the time to consider increasing your book prices. Inflation is real and has affected everyone and every product. Make sure your prices are in line.