Steps
Research competitor prices
Search Amazon for books directly competing with yours. Note the eBook prices of the top 10–15 results. Calculate the range and median. This is your pricing benchmark — most readers expect your book to be in this range.
Understand the 70% royalty threshold
KDP pays 70% royalty on eBooks priced $2.99–$9.99 (USD). Below $2.99 or above $9.99, you drop to 35% royalty. This threshold is the single most important pricing rule. Never price between $10 and $12.99 without a specific strategy — you're losing royalties for no benefit.
Choose your launch price strategy
Option A — Soft launch: price at your target long-term price from day one ($3.99–$5.99 for fiction; $7.99–$9.99 for non-fiction). Clean and simple.
Option B — Low launch: price at $0.99 or $1.99 for 3–7 days to maximise early sales velocity, then raise to target price. Better for generating initial reviews and BSR momentum.
Set your target long-term price
Fiction eBooks: $3.99–$5.99 is the most common and proven range. Book 1 of a series is often priced at $0.99–$2.99 as a funnel.
Non-fiction eBooks: $7.99–$9.99 is standard for full-length books. Shorter books or workbooks typically $4.99–$6.99.
Price your paperback
Find the printing cost in your KDP dashboard (it depends on page count and trim size). Set your paperback price at printing cost ÷ 0.60, rounded up to the nearest $0.99. This is the minimum price for any royalty. To earn a reasonable margin, price $3–$6 above your minimum.
Check competitor paperback prices and stay within $2 of the category average.
Tips
- Ending prices in .99 (not .00) consistently converts better — psychological pricing works in books as in all retail.
- If your book is in Kindle Unlimited, the "price" matters less for KU readers (they read for free). Focus pricing strategy on the direct purchase audience.
- Experimenting with price: KDP allows you to change your price at any time. Changes take 24–48 hours. Test a price increase and monitor for 2 weeks — if unit sales drop by more than the revenue gain, revert.
FAQ
Should I launch at $0.99 or full price?
The $0.99 launch strategy generates more initial reviews and BSR momentum, which can improve algorithmic visibility. The full-price launch preserves per-unit income from day one. If you have an existing audience who will buy regardless of price, launch at full price. If you're unknown and need momentum, $0.99 for the first few days is a proven strategy.
Can I raise my KDP price after launch?
Yes — you can change your price at any time through the KDP dashboard. Changes take effect within 24–48 hours. There's no penalty for changing price, and no limits on how many times you change it.