Quote:
Originally Posted by Barty
So how much approximately does the publisher get from amazon for each hard cover listed at $27.99 vs the ebook at $14.99? For the ebook that's around 70% or $10.49, right?
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This is an important question, I think. I'll give it a shot, but I'm sketchy on it. Others know the numbers better than I do, so I hope they'll chip in with additions and correct anything I get wrong.
But FWIW, my understanding is:
Publishers get:
70% of the ebook price
50% of the pbook price
(They sell the pbook to Amazon for half the list price, and Amazon sells it for whatever they want - taking a cut or making a profit.
They sell the ebook directly to the customer, and give Amazon a 30% cut.)
So, for this book... If my understanding is correct:
Paper book:
Publisher listed it at $27.99
Sold it to Amazon for 50% of that
So the publisher gets $14.00
(Amazon added 28 cents for themselves, so the customer pays $14.28)
ebook:
Publisher lists it at $14.99.
Sell it to us, give Amazon 30%, so the publisher gets $10.50
So the check the publisher would get for that ebook would be $3.50 (25%) less than they'd get for the pbook.
But as for how much they profit, well...
1. Most people say the overhead
(Printing, distribution, returns, etc.) on ebooks is
at least 15% lower than the pbook.
So by the most-generous-to-them numbers, they're really only
making $1.50 less on the ebook... if my math is right.
2. I've been told by authors that their royalties are lower for ebooks. I find that to be incredible, but maybe some or all do.
3. Then there are the long-term considerations - e.g., the lack of competition from resale.
Either way, I think they're making the same or (quite likely) more for the pbook version as they are getting for the ebook version at these prices.
I'd love for someone who's more in the know to help get this rundown tightened up, though.
