Why Is My Royalty Report Displaying Negative Amounts?

There are a few different reasons there could be negative royalties.

1. Returns- Third party distributors allow returns on eBooks. The negative amounts on your royalty report are a reflection of any returns. It is rare but occasionally a return that happened in one quarter won't show up until the next quarter's report.

2. The author set retail price is not high enough to cover the costs of printing after channel discounts. Example: retail price $10, channel fee 40%=$4, printing fee $6.50. That would result in a -.50 royalty on books sold in-channel.

3. Amazon eBook delivery fee on large eBooks is greater than the profit on the eBook. Example: author sets eBook price at $2.99 on a large eBook. Amazon charges $3.50 delivery fee. Results in -.50 royalty.

Most of these are caught before an author can publish, but some slip by. Authors just need to make sure they set their retail price high enough to avoid these issues.

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