Most authors, of course, want to sell a lot of copies of their eBook. The difference between selling printed books and eBooks is that eBook pricing can be a powerful marketing tool.
Ebook book pricing strategies aren’t new to eBook marketing and Kindle book marketing. But some authors have moved away from tactics that worked very well for authors and helped them achieve strong eBook sales.
Unlike printed books, it’s easy to strategically change the price of your eBook. Some experts believe in starting high to low, others low to high.
Here’s what this means:
Finding the sweet spot in pricing your eBook isn’t difficult to do. Start with a price at the higher end and every few days drop the price by $1 dollar until you get below a price of $1. For example, you might start your price at $6.99 and incrementally reduce it down to $0.99. Repeat the process one more time, analyze sales data, and find the price at which the most copies of your book sold.
Once you have your “right price,” keep it there.
You can do the same with a low to high strategy. The key in either approach is to allow sufficient time to collect sufficient data upon which you can confidently determine the best price.
But … you need to be aware of Amazon’s pricing policies.
‘Selling’ your book for free used to be a popular eBook marketing tactic. You could ‘sell’ a lot of copies, get a high ranking, and then shift to pricing your book and keep the high ranking. Amazon and other bookselling sites have made this much more difficult.
The key to effectively marketing your eBook is understanding Amazon policies.
First, some things to consider: If you price your eBook at the high end, say $9.99, Amazon rewards you with a higher royalty. Pricing below a certain point reduces your royalty. However, if you sell more books at a lower price and receive a lower royalty, you might end up making more money that if it was a higher priced.
A little confusing? Indeed. Here’s how Amazon explains it:
35% Royalty Option
Less than 3 megabytes, minimum list price of $0.99, maximum of $200
Greater than or equal to 3 megabytes and less than 10 megabytes
Minimum price of $1.99, maximum of $200
10 megabytes or greater
Minimum price of $2,99, maximum of $200
70% Royalty Option
Minimum price of $2.99, maximum of $9.99
So what’s an author to do? Do your homework, study, and test, test and test some more.