Amazon KDP Is Costing You Money. Here's Why I Switched to Gumroad.
If you’re a self-published author, you’ve probably dreamt of seeing your book on Amazon. Kindle Direct Publishing (KDP) makes that dream accessible, offering unparalleled reach and the prestige of the world's largest bookstore. But while KDP is great for getting your name out there, it might be quietly draining your profits.
After digging into the numbers, I realized that for authors who want to build a sustainable business, there’s a better way. This is the story of why I moved my primary sales focus from Amazon KDP to Gumroad—and how it transformed my earnings.
The Amazon Dream vs. The Financial Reality
Amazon KDP’s promise is simple: upload your book for free and get it in front of millions of readers. But that simplicity hides some significant financial trade-offs that can severely limit how much you actually take home.
The Myth of the 70% Royalty
Amazon heavily advertises its 70% royalty rate for ebooks, but there's a catch. You only get that rate on books priced between $2.99 and $9.99, and only in specific countries. Outside that narrow window, your royalty drops to a mere 35%.
Even worse, Amazon deducts "digital delivery fees" from your 70% royalty based on your file size. It might only be a few cents per sale, but it adds up, chipping away at your already limited earnings.
The Disappointing Math of Print-on-Demand
Hoping to make more from paperbacks? Think again. For print books, you get a 60% royalty, but only after Amazon subtracts the printing cost. For a typical $15 paperback, after printing costs are deducted, you might only walk away with $4 to $6. It’s a slim margin for all the work you put into writing your book.
You Don’t Own Your Audience
This might be the biggest hidden cost of all. When someone buys your book on Amazon, Amazon gets the customer's data, not you. You have no idea who your readers are and no way to contact them directly. This makes it impossible to build an email list, announce your next book, or foster a loyal community around your work. You are completely dependent on Amazon's algorithm to show your book to new readers.
Why Gumroad is a Game-Changer for Authors
Frustrated with these limitations, I started looking for an alternative and found Gumroad. It’s a platform designed for creators to sell directly to their audience, and it solves every major problem I had with KDP.
Simple, Transparent Fees
Gumroad's fee structure is refreshingly straightforward. It starts with a 10% flat fee per sale. That’s it. No hidden delivery fees, no confusing royalty tiers, and no printing costs to calculate. As you grow, you can opt for a paid plan that lowers the fee even further. This transparency means you know exactly how much you'll make from every single sale.
You Control Your Price, Completely
On Gumroad, you have total pricing freedom. Want to sell your ebook for $1, $19, or $99? Go for it. You can also create tiered packages, offer discount codes, or even use a "pay-what-you-want" model. This flexibility allows you to price your work based on its true value, not on Amazon’s restrictive rules.
You Finally Own Your Customer List
Every time you make a sale on Gumroad, you get your customer's email address. This is a massive advantage. You can add them to your newsletter, send them personal thank-you notes, and let them know when you have a new product. You're no longer just an author; you're a business owner building a direct, long-term relationship with your audience.
Ready to Make the Switch? A Simple 5-Step Guide
Moving from KDP to Gumroad doesn't mean you have to abandon Amazon entirely. Many authors use both—KDP for discoverability and Gumroad for direct sales to their existing audience. If you want to start maximizing your profits, here’s how to get started with Gumroad.
- Get Your Files Ready: Prepare your manuscript as a PDF, EPUB, or MOBI file that you can upload directly to Gumroad for your customers to download.
- Set Up Your Gumroad Product: Create a new product on Gumroad, write a compelling description, design an attractive cover image, and set your price.
- Build a Simple Sales Page: You can use Gumroad's built-in product page or create a landing page on your own website that links to the Gumroad checkout.
- Promote Directly to Your Audience: Drive traffic to your Gumroad page through your email list, social media channels, or blog. Offer special discounts to encourage direct purchases.
- Build and Nurture Your Audience: With every sale, your email list grows. Use it to provide value, build community, and announce future releases. This direct line to your readers is your most valuable asset.
The Final Verdict: KDP for Discovery, Gumroad for Profit
Amazon KDP is still a powerful platform for reaching new readers who have never heard of you. But if you’re serious about making a living from your writing, you can't rely on it alone. Its restrictive royalties, hidden fees, and lack of customer data create a firm ceiling on your income potential.
By switching to Gumroad for direct sales, you take back control. You get higher profit margins, total pricing freedom, and—most importantly—a direct relationship with the people who love your work. It's more than just a change of platforms; it's a strategic move toward building a truly sustainable and profitable career as an author.