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26 August 2026

What you keep on a £4.99 ebook sold direct: Payhip, Shopify, Gumroad and BookFunnel against KDP's royalty bands

Direct sales get talked about as though the margin is the whole argument, and the margin is real, but the numbers are rarely put next to each other. So here is one £4.99 ebook, sold through five different routes, with every fee taken out.

All the sums below assume a UK buyer paying with a UK card. Cross-border cards cost more everywhere, so treat these as the best case rather than the average.

The KDP number you are trying to beat

On KDP, a £4.99 ebook sits inside the 70% band, and the 70% band charges a delivery cost of £0.10 per megabyte in the UK store. A 2MB file therefore returns £3.49 minus £0.20, so £3.29. Push the same book to £10.99 or drop it below the band's floor and you fall to 35%, which is £1.75 with no delivery cost deducted. The 35% band is also what you get in territories where the 70% option is not offered.

So £3.29 is the figure a direct sale has to clear.

What each route takes out of one sale

Payhip's free plan charges 5% and lets you connect your own Stripe or PayPal account, so you pay their card fees directly. Stripe's published UK rate is 1.5% plus 20p on UK cards, rising to 2.5% plus 20p on EEA cards and 3.25% plus 20p on cards from further afield. On £4.99 that is 25p to Payhip and 27p to Stripe, leaving £4.47. Payhip's paid tiers cut the platform fee to 2% at $29 a month and to zero at $99 a month, which take the same sale to £4.62 and £4.72 before the subscription.

Shopify Basic is £25 a month in the UK, and Shopify Payments charges 2% plus 25p on that tier, so you keep £4.64 per sale. Digital delivery needs an app on top, either Shopify's own free downloads app or something like BookFunnel.

Gumroad charges 10% plus $0.50 and, as merchant of record since January 2025, adds its own processing of roughly 2.9% plus $0.30. That stacks to about £1.23 on a £4.99 sale, leaving around £3.76, and currency conversion on payout shaves that further. Gumroad also holds your balance until it hits a minimum before paying out, reported at $100 for unverified accounts as of 2026, so low-volume sellers may wait months to see the money. Payhip, by contrast, pushes each sale straight into your connected account.

BookFunnel is not a checkout, so it takes no cut. It delivers the file after a sale you have processed elsewhere. Worth clearing up a common mix-up: direct sales delivery is included in BookFunnel's plans, and the $50 a year Direct Integration add-on covers mailing list integrations on the Mid-List tier, taking that plan to $150 a year in total. BookFunnel repriced in February 2026, so check the tier you are actually being quoted.

Five, twenty and a hundred sales a month

At five sales a month, Payhip's free plan nets £22.33 against £16.46 on KDP's 70% band and £8.73 on the 35% band. Payhip Plus at $29 nets about eight pence. Shopify Basic loses you £1.80.

At twenty sales, Payhip free returns £89.31, Payhip Plus £69.31, Shopify Basic £67.80, Gumroad £75.13 and KDP £65.86.

At a hundred sales, Payhip free returns £446.56, Shopify Basic £439.02, Payhip Plus £438.54, Gumroad £375.63 and KDP £329.30.

Where the monthly fee starts earning its keep

Moving from Payhip's free plan to Plus saves 15p a sale, so the $29 fee needs roughly 154 sales a month at this price to pay for itself. Pro needs about 313. Shopify Basic keeps 17.5p more per sale than Payhip free, so £25 a month needs about 143 sales, and adding £10 a month of delivery tooling pushes that past 200.

The pattern holds at any price point: percentage plans win until volume is high, and volume is the thing most authors do not have on day one. Start on the free tier and let the sales move you up.

The costs the per-sale maths misses

UK ebooks have been zero-rated for VAT since May 2020, so £4.99 from a UK buyer is £4.99 gross. Sell to EU consumers and VAT applies from the first sale, which is why merchant-of-record platforms charge what they charge. Check whose name is on the tax obligation before you build a shop around it.

KDP's terms also expect your book not to be cheaper elsewhere, so most authors match the Amazon price direct and compete on bonus content rather than discount.

The fees decide what a sale is worth. They do not decide whether anyone arrives to buy, and that part sits with your mailing list, your back matter and your author site. •BulletPoint Publishing's Toolchest puts the site, the list, direct sales, ARC delivery and the press kit on one flat monthly fee, so the maths above stops being a stack of separate subscriptions. Have a look at what is in it.

Questions, answered

Do I earn more selling an ebook direct or on Amazon KDP?

On a £4.99 ebook, KDP's 70% band pays £3.49 minus a delivery cost of about £0.10 per megabyte, so roughly £3.29 for a 2MB file. The same sale on Payhip's free plan with your own Stripe account leaves about £4.47 after the 5% platform fee and card processing. Per sale, direct wins by more than a pound, but Amazon supplies the traffic and you have to supply your own.

How much does Gumroad take on a £4.99 ebook?

Gumroad charges 10% plus a $0.50 flat fee, and because it acts as merchant of record it also adds card processing of roughly 2.9% plus $0.30. On a £4.99 sale that comes to about £1.23, leaving around £3.76 before any currency conversion on payout. The fixed fees hurt cheap products most, so low-priced ebooks lose a bigger share than higher-priced ones.

Is Shopify worth it for selling ebooks direct?

Shopify Basic costs £25 a month in the UK and its payment fees on that tier are 2% plus 25p, so you keep about £4.64 on a £4.99 sale. Compared with a free percentage-fee platform, that extra margin only covers the subscription at roughly 143 sales a month, and more once you add a delivery app. Below that volume, a free plan with a higher percentage fee usually leaves you with more money.

Does BookFunnel take a percentage of direct sales?

No. BookFunnel handles delivery of the file after the sale, not the checkout, so it charges an annual plan fee rather than a cut of revenue. Direct sales delivery is included in its plans, and the separate $50 a year Direct Integration add-on covers mailing list integrations on the Mid-List tier, taking that plan to about $150 a year. BookFunnel changed its pricing in February 2026, so confirm the current tiers before budgeting.

Do I have to charge VAT on ebooks I sell from my own website?

UK ebooks have been zero-rated for VAT since May 2020, so a UK buyer's payment is not reduced by VAT. Sales to EU consumers are a different matter, as VAT is due at the buyer's local rate from the first sale, which either means registering for the EU's one-stop-shop scheme or using a platform that acts as merchant of record and handles it for you. Check which of those applies before you launch a shop, and take advice if your sales are international.

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