Amazon KDP is Cutting Royalties. Here’s what Self-Publishing Authors Can Do About It.
In June 2025, Amazon introduced a significant change to its royalty structure for print books on Kindle Direct Publishing (KDP), forcing many authors to reevaluate their publishing and marketing efforts. Previously, authors earned a 60% royalty on the list price (minus printing costs) for paperback and hardcover books. Now, for books priced below $13.99 CAD (or $9.99 USD in the United States), the royalty rate has dropped 10%, down to 50%.
Many self-published authors are now wondering: Is it still financially viable to publish through Amazon KDP? Of course it is! Amazon is where most readers go to purchase books. But if you’re a self-published author seeking to make a living by selling your books on Amazon, doing so profitably in 2025 demands a deliberate and informed strategy.
As founder of Foglio, Toronto’s premier self-publishing service for new and established authors, I believe it’s more pressing than ever before to have a clear understanding of Amazon KDP’s royalty structure, methods of adapting, and alternative venues for the sale of your books. My goal here is to give you a clear breakdown of the upcoming changes and some useful strategies to ensure your self-publishing venture remains worthwhile.
What Changed on Amazon KDP?
Amazon has changed its royalty structure for print books, effective June 10, 2025. For all paperback and hardcover titles priced below the threshold of $13.99 CAD or $9.99 USD, the royalty rate has decreased from 60% to 50%. For instance, a book priced at $8.99 with a print cost of $2.65 previously earned a royalty of $2.74 per sale. After these changes take effect, that royalty will drop down to $1.85, which is effectively a reduction of 32%.
While Amazon attributes the change to rising operational costs, the reailty is that many authors interpret this as a means of protecting corporate margins at the expense of independent creators. Regardless of motive, the reality remains the same: authors must now adjust their pricing and publishing strategy to maintain profitability.
What do these changes mean for authors
Many self-published authors choose to price their books under $10 to stay competitive, attract casual buyers, and position themselves for impulse purchases. However, the revised royalty structure undermines this model by punishing low price points with reduced returns. The consequence is especially pronounced for debut or early-career authors who have yet to build a sizable backlist or loyal readership.
This shift also highlights a broader vulnerability, namely overdependance on a single platform. Although Amazon offers robust distribution, market access, and unparalleled consumer trust, it’s absolutely essential that self-publishing authors branch out and explore other vendors for the sale of their books. No matter what, you want your book to be on Amazon, as it remains the largest marketplace for books worldwide. However, making your book available on platforms like IngramSpark and Draft2Digital will not only widen your distribution but also strengthen your overall marketing strategy by increasing visibility in bookstores, libraries, and niche online retailers.
Three Strategies to Sustain Revenue on Amazon KDP
1. Reevaluate and Adjust Your Pricing Model
The most straightforward way to offset reduced royalties is to increase your book's list price above the threshold. For Canadian authors, this means setting your paperback price at $13.99 CAD or more. While it may seem counterintuitive, readers often associate higher prices with higher quality. A modest price increase—from $12.99 to $14.99, for instance—can preserve your margin without significantly reducing sales volume.
Amazon offers a royalty calculator that lets you experiment with pricing scenarios and assess their financial impact. We encourage authors to use this tool in conjunction with competitive market research to identify pricing tiers that align with reader expectations and perceived value.
2. Build a Catalog and Maintain Consistent Output
Authors with a robust backlist tend to earn more consistently. The reason is that each new release generates not only direct revenue, but also refreshes interest in earlier titles. Series of fiction and nonfiction works that address a common theme or audience are especially effective for maintaining reader engagement over time.
If you are preparing your first book, it is wise to plan for future titles that complement your initial work. Foglio’s self-publishing packages are designed to help authors launch not just a single book, but a scalable publishing career by developing a cohesive author brand. Building an author brand starts with elements like cover design, but is diffused across all aspects of book design (like typesetting and ebooks), as well as marketing materials like banners, posters, social media posts, etc.
Even if you’re only getting started in publishing, it’s important to have a robust and creative backlist-centred mindset from the start. Earlier titles can be sold a discount as a meaningful promotion for a new book. You can also revive interest in previous titles by releasing audiobook, ebook or signed special editions if you don’t already have these available. Reviving your backlist can help boost your revenue with minimal effort. In short, you don’t always have to write a new book to sell more books.
3. Expand Distribution Beyond Amazon
While Amazon remains the dominant platform for self-published authors to sell their books, it's important that authors adopt a wider distribution strategy. Platforms such as Draft2Digital, Kobo Writing Life, and Apple Books allow you to reach readers outside the Amazon ecosystem, including library and academic markets. These platforms typically offer competitive royalty structures and often allow for greater pricing flexibility.
Authors should also consider direct-to-consumer sales via their own websites. Selling directly gives you complete control over pricing, marketing, and customer engagement. It also lets you capture reader emails and build long-term relationships with your audience. At Foglio, we help authors design custom websites that enhance discoverability and streamline e-commerce.
Additional Methods for Maximizing Self-Publishing Income
To diversify revenue streams, authors should consider offering their work in multiple formats. Ebooks, print-on-demand paperbacks, and audiobooks each appeal to different segments of the reading market. Audiobooks, in particular, have seen rising popularity in recent years, and as I mentioned earlier, producing an audiobook version of an older title is a great way to revive your backlist with minimal effort.
Services like IngramSpark can help authors distribute physical copies to bookstores and libraries, expanding reach beyond digital storefronts. Meanwhile, platforms like Patreon and Substack offer opportunities to monetize community-building and serialized content.
Marketing also plays a critical role. Authors should be proactively promoting their work through social media, newsletters, public readings, in-person/online seminars, and interviews. Local engagement, i.e. offering a workshop at a local library or getting featured in a community newspaper, can generate organic sales and reviews.
A Strategic Pivot, Not a Setback
The recent changes to Amazon KDP's royalty structure present a challenge, but also an opportunity. By understanding the new rules, evaluating your pricing, expanding your catalog, and exploring new sales channels, you can continue to build a successful author business.
Foglio supports authors in a multitude of ways, not just in publishing a single book, but in establishing a sustainable writing and publishing career. If you are navigating these new changes and want professional guidance, we invite you to schedule a free consultation.
