How To Withdraw Royalties From Amazon KDP

Introduction.

If you’re an indie author or self-publisher on Amazon Kindle Direct Publishing (KDP), understanding how to withdraw your royalties is key. After all, the reward for your hard work is getting paid!

Amazon KDP has made it easier for authors to publish and distribute their books worldwide, but when it comes to receiving royalties, many writers find themselves a bit lost in the details.

With Amazon managing everything from distribution to payment collection, the actual withdrawal process for authors can seem a bit mysterious at first.

In this guide, I’ll break down how Amazon KDP royalties work, how you can withdraw your earnings, and some things to keep in mind to get the most out of your royalties.

Understanding Amazon KDP Royalties

Amazon KDP offers two main royalty options: 35% and 70%. Here’s a quick breakdown of each:

• 70% Royalty Option: Available for eBooks priced between $2.99 and $9.99 in certain markets, including the US, UK, and Canada. This option has a higher royalty rate but comes with a few extra requirements, like setting the book price within specific limits and enabling Kindle lending.
• 35% Royalty Option: Available for eBooks priced outside the $2.99–$9.99 range or sold in regions where the 70% royalty isn’t offered. This option doesn’t have any additional requirements, but the royalty rate is lower.

Amazon calculates royalties based on your book’s list price, minus any delivery fees and taxes. Every month, Amazon tracks your sales, calculates your royalties, and prepares them for disbursement.

However, it’s worth noting that you won’t receive these royalties right away—Amazon typically holds them for a couple of months before they’re paid out.

How Do I Withdraw Royalties From Amazon KDP?

Withdrawing royalties from Amazon KDP isn’t complicated, but there are a few steps to be aware of:

1. Set Up Your Payment Information.

Start by entering your bank account details in your KDP account settings. Amazon supports direct deposits in several countries, so you can get your royalties straight into your bank account if you’re in a supported region. Otherwise, you’ll need to rely on checks or other available options.

2. Meet the Payment Threshold.

Amazon has different payment thresholds based on your preferred payout method and currency. For instance, the minimum payout is typically $100 for check payments and $10 for direct deposits. This means you’ll need to earn at least that amount before Amazon releases your royalties.

3. Understand the Payment Timeline.

Amazon pays out royalties approximately 60 days after the end of the month in which the sales occurred. For example, royalties earned in January will typically be paid at the end of March. This delay is due to Amazon’s sales reconciliation process.

4. Track Your Earnings.

You can keep track of your royalties through the KDP dashboard, where Amazon provides detailed sales reports. This tool allows you to monitor daily sales, royalties earned, and other important details.

5. Withdraw Your Earnings.

Once your earnings meet the payment threshold, Amazon will automatically process the withdrawal. For direct deposits, funds are transferred directly to your bank account, while check payments will be mailed to the address you provided.

Pros and Cons of Amazon KDP’s Royalty System

Like any payment system, Amazon KDP’s royalty withdrawal process has its pros and cons. Here’s a look at some of the main points:

Pros

• Convenient Direct Deposits: Amazon supports direct deposits in many countries, making it easy to receive payments without added fees or delays.
• Detailed Sales Reporting: The KDP dashboard offers transparent, real-time sales reports, so you always know how your books are performing.
• Broad Distribution Reach: KDP makes it possible to reach millions of readers around the world, which can lead to higher sales and royalties for successful books.

Cons

• Payment Delays: The 60-day waiting period means you won’t see immediate payouts, which can be a downside if you’re relying on royalties for regular income.
• Higher Thresholds for Checks: If you’re not eligible for direct deposits, the $100 minimum for checks may mean waiting longer to access your earnings.
• Currency Conversion Fees: If you’re outside of the US, your royalties may be subject to conversion fees, which can eat into your final payout.

Frequently Asked Questions About Withdrawing KDP Royalties

Let’s address some of the common questions authors have when it comes to withdrawing their KDP royalties.

1. How often does Amazon KDP pay out royalties?

Amazon pays royalties every month, but there is a 60-day delay. For instance, royalties for books sold in January will be paid at the end of March.

2. What payment methods does Amazon KDP offer?

Amazon KDP offers direct deposits, checks, and wire transfers in some regions. Direct deposit is the fastest and most reliable option if it’s available in your country.

3. What’s the minimum amount required to receive a payment?

The minimum payout threshold depends on your chosen payment method. It’s generally $10 for direct deposits and $100 for checks.

4. Are there any fees associated with withdrawing KDP royalties?

Direct deposits are typically free, but there might be fees for currency conversions if you’re outside of the US. Check payments may also have fees, depending on your bank’s policies.

5. Can I change my payment method after setting it up?

Yes, you can change your payment method by going to your KDP account settings. Keep in mind that this may affect your payment timeline, so plan accordingly.

Tips for Making the Most of Your KDP Royalties

Here are a few tips to help you maximize your royalties on Amazon KDP:

• Price Strategically: If you’re targeting the 70% royalty rate, aim for the $2.99–$9.99 range to maximize your earnings. Pricing outside this range will drop you to the 35% rate.
• Keep an Eye on Exchange Rates: If you’re an international author, pay attention to currency conversion rates, as they can impact the final amount you receive. Some authors choose to set their prices slightly higher in foreign markets to account for any potential losses due to conversion.
• Review Sales Data Regularly: Regularly checking your KDP dashboard helps you stay on top of trends, allowing you to make informed decisions about pricing, promotion, and marketing strategies.

Wrapping Up.

Withdrawing royalties from Amazon KDP may seem complicated initially, but once you’ve set up your payment method and understand the basics of the royalty structure, it becomes more straightforward.

By knowing the payout timelines, thresholds, and any fees involved, you’ll be able to plan more effectively and make the most of your earnings.

So, now that you’ve learned how the KDP royalty process works, what are your next steps as a self-published author?