Book & eBook Marketing Book Pricing & Royalty Strategies 2 — Questions and Answers
Question 1: Which psychological pricing principle explains why $9.99 consistently outsells the same product priced at $10.00?
- Scarcity pricing
- Charm pricing (odd-even pricing) (Correct answer)
- Bundle effect
- Anchoring bias
Correct answer: Charm pricing (odd-even pricing)
Charm pricing uses prices ending in .99 or .95 because consumers perceive them as significantly lower than the next round number, even when the difference is minimal.
Question 2: What is the primary benefit of enrolling a book in Amazon KDP Select?
- Higher print royalties on paperback sales
- Access to Kindle Unlimited readers and exclusive promotional tools (Correct answer)
- The ability to sell in more international currency markets
- A higher maximum permissible list price
Correct answer: Access to Kindle Unlimited readers and exclusive promotional tools
KDP Select enrollment provides access to the Kindle Unlimited subscription royalty pool and exclusive tools like Free Book Promotions and Countdown Deals.
Question 3: What royalty rate does Amazon KDP pay for eBooks priced below $2.99 or above $9.99?
- 20%
- 35% (Correct answer)
- 50%
- 65%
Correct answer: 35%
Amazon KDP pays a 35% royalty rate for eBooks priced outside the $2.99–$9.99 sweet spot, which is why most authors target that middle range.
Question 4: What is 'price anchoring' as used in book promotions like Amazon Countdown Deals?
- Locking in a price for a fixed period across all platforms
- Displaying a high original price alongside a discounted price to make the sale seem more valuable (Correct answer)
- Anchoring your price exactly to a competitor's price point
- Using the identical price across every retailer to avoid confusion
Correct answer: Displaying a high original price alongside a discounted price to make the sale seem more valuable
Price anchoring presents the higher 'before' price alongside the discounted price, making the savings feel substantial and encouraging purchases.
Question 5: Which price range is most commonly recommended for fiction eBooks to balance sales volume with the highest royalty tier?
- $0.99–$1.99
- $2.99–$4.99 (Correct answer)
- $5.99–$7.99
- $9.99–$12.99
Correct answer: $2.99–$4.99
The $2.99–$4.99 range qualifies for Amazon's 70% royalty tier while remaining an impulse-buy price point attractive to most genre fiction readers.
Question 6: What is the main restriction an author accepts when enrolling in Amazon KDP Select?
- They cannot publish a print edition of the same book
- They cannot sell or distribute the eBook on any other platform during the 90-day enrollment period (Correct answer)
- They must price the eBook above $2.99 at all times
- They must release a new title every 90 days to maintain enrollment
Correct answer: They cannot sell or distribute the eBook on any other platform during the 90-day enrollment period
KDP Select exclusivity prohibits the eBook from being sold or freely distributed anywhere else during the enrollment period, including the author's own website.
Question 7: Which eBook distribution aggregator allows authors to upload once and reach retailers like Kobo, Apple Books, and Barnes & Noble simultaneously?
- BookBub
- Draft2Digital (Correct answer)
- Reedsy
- Canva for Publishing
Correct answer: Draft2Digital
Draft2Digital is a leading aggregator that distributes eBooks to multiple major retailers from a single upload, simplifying wide distribution without individual platform setups.
Book & eBook Marketing Book Pricing & Royalty Strategies 2
Which psychological pricing principle explains why $9.99 consistently outsells the same product priced at $10.00?