This post is really aimed at any writers out there thinking about publishing their work on Kindle; the information has filtered down to me (via a writer friend) from the head honcho at electronic publisher Untreed Reads.
Apparently, for any work priced at less than $2.99 (or the £ equivalent in the UK, presumably), Amazon takes back a hefty 65% on every sale. For titles over $2.99, Amazon check regularly and if they find it for sale at a lower price anywhere else they will automatically reduce the Kindle price to match and only pay royalties on the lower price.
It's worth bearing this information in mind, especially for anyone hoping to put out single-title short stories on Kindle, as it will have a big effect on the amount of income you can expect from your sales.
There's always a downside, isn't there?