# Publishing Your Own Book with Amazon CreateSpace

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Calculating Profit—or Loss

## Calculating Profit—or Loss

When you publish your book, you set the book’s list price. This is the stated retail price for the book; if a retailer sells the book with no discount to customers, it’s the retail price that’s paid.

When it comes to a CreateSpace book, the list price is used as a base to calculate various fees. Amazon charges a sales channel percentage on each book sold; this percentage differs by sales channel, as shown in Table 2.

Table 2: CreateSpace Sales Channel Percentages

 Sales Channel Percentage CreateSpace eStore 20% Amazon.com 40% Expanded Distribution Channel (Pro Plan only) 60%

Think of the sales channel percentage as Amazon’s gross profit on a book. That is, if you sell your book through Amazon.com, Amazon keeps 40% of the list price as its profit. That’s not far off than the profit margin earned by traditional retailers, who typically buy books at 40% or so off list price.

So if Amazon keeps 40% (for Amazon.com sales), you get 60%, right? No, not really. That’s because you also have to subtract Amazon’s fees for printing your book. In particular, Amazon charges a fixed fee per book, along with a per-page charge (for books with higher page counts). Table 3 details these charges.

Table 3: CreateSpace Fixed and Per-Page Charges

 Form Factor Fixed Charge (per book) Pro Plan Fixed Charge (per book) Per-Page Charge (per page) Pro Plan Per-Page Charge (per page) Black and white books with 24-108 pages \$3.66 \$2.15 None None Black and white books with 110-828 pages \$1.50 \$0.85 \$0.02 \$0.012 Full-color books with 24-40 pages \$6.55 \$3.65 None None Full-color books with 42-250 pages \$1.75 \$0.85 \$0.12 \$0.07

Taking these charges into your account, your real profit per copy sold—what Amazon calls your royalty—is calculated as such:

List Price

- Sales channel percentage

- Fixed charge

- Per-page charge (for higher page-count books)

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Let’s calculate a simple example. For this example, assume you’re selling a 250 pp. black and white book with a list price of \$14.95, and sales are through the Amazon.com channel—and that you’re not on the Pro Plan. This book format has a \$1.50 fixed charge plus \$0.02 per-page charge; the Amazon.com channel has a 40% sales channel percentage. The calculation is as follows:

\$14.95 (list price)

- \$5.98 (sales channel percentage – 40% x \$14.95)

- \$1.50 (fixed printing charge)

- \$5.00 (per-page printing charge -- \$0.02 x 250)

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