That makes no sense. Go to the pricing page and take an image of the US price box. Without seeing what you're seeing, none of that makes any sense.
Attached is what I see. It's from the only paperback I have. Right now, it shows a $2.07 royalty at the 60% rate. If it dropped to 50%, I calculate my royalty would be $0.06 which isn't much but is more than zero. But, since it is priced at $19.99, it should not be affected by the change because it is more than $9.99.
Isn't the math wrong?
19.99-9.93=10.06 60% of 10.06 is 6.03. Where is the 2.07 coming from? Am I just missing something obvious?
Amazon deducts the printing cost from your royalty share.
So, 60% of 19.99 is 11.994 minus 9.93 = 2.064 which Amazon kindly rounds up to 2.07.
I guess that's the way it's always been. It would be better for us if the print cost were subtracted from the retail price, and we got 60% of the remainder, which is the way I was doing it. Somehow, I had convince myself that was the way it was actually being done.
That's because that would make the most sense and be the most fair. That was how I tried doing the math initially as well. But, this is Amazon, and authors aren't vendors, we're customers. They promise us great royalties, but then they claw that back if you're using AMS to get those sales in the first place. And, for print, no doubt they are using their own printing facilities so, beyond the cost of paper, ink and equipment maintenance, they are getting a good chunk of the printing cost as well. So, they take it from us all the way around.