Kobo is raising the minimum price for an ebook to qualify for 70% royalties from $1.99 to $2.99 and has dropped the upper range limit, in effect, doubling the royalty offered by Amazon’s Kindle on higher-priced ebooks.
The change represents a 50% increase as, previously, to qualify for 70% payments, an ebook on Kobo Writing Life had to be priced between $1.99-$12.99, with the royalty dropping to 45% for ebooks outside that range.
Amazon pays 70% royalties on ebooks priced between $2.99 and $9.99 and 35% outside that range.
The Kobo changes take effect from October 17 and the company claims “these revisions will help you to increase your unit sales and earnings”.
It looks like a move that could attract a new wave of authors to Kobo. Although Kobo previously offered a wider price range than Amazon to qualify for 70% payments, scrapping the upper limit will be welcomed by niche publishers who feel their ebooks merit a higher price.
The minimum prices internationally to qualify for 70% ebook royalties from Kobo are:
£2.99 in the UK (previously £1.99-£7.99)
$2.99 CAD in Canada (previously $1.99-$12.99)
$2.99 AUD in Australia (previously $1.99-$11.99)
€2.99 in the European Union (previously €1.99-€12.99)
$2.99 NZD in New Zealand (previously $1.99-$12.99)
$15.99 HKD in Hong Kong (previously $15.99-$99.99)
¥80 in Japan (previously ¥80-¥1,040)
Other conditions include:
The ebook price must be at at least 20% below the SRP of the physical edition of the book, if one is available.
The SRP for ebooks provided must also be less than or equal to the lowest price provided by the publisher to any third party.
Ebooks must be made available to Kobo for sale in every geographic location within which the publisher has intellectual property rights.
Public domain ebooks are paid royalties at a standard rate of 20% by Kobo.