Kindle Direct Publishing (KDP) allows authors to release their work direct to users of the Kindle devices and Kindle reading apps.
In December 2011, Amazon launched KDP Select, a new system that enables independent authors to make their works available to the Kindle Owners' Lending Library on Amazon.co.uk, Amazon.com, Amazon.de and Amazon.fr.
Authors can earn a share of a global fund every time their book is borrowed, and borrows from the library also count toward the book's sales rank on Amazon.
Amazon has said that in its full year, KDP Select has paid authors more than £4m from the global fund, and more than 500 books in the scheme have made it onto the top 100 Kindle best seller lists around the world.
KDP Select books have been purchased, borrowed or downloaded over 200 million times, Amazon said. In October alone, UK authors enrolled in the programme earned £1.47 per book borrowed, which is more than many KDP books earn per sale.
As the company is expecting "millions" of Kindle devices to be bought this Christmas, it is adding a £930,000 'Christmas Bonus' for KDP Select authors from December to February.
December's regular monthly fund is already over £435,000, but an extra £435,000 of the £930,000 bonus will be paid out in that month, doubling the total amount available to authors in December to more than £870,000.
The remaining £495,000 of the bonus will be paid on top of the regular KDP Select fund in January and February.
"This Christmas, millions of customers will open new Kindles, and if they're Amazon Prime members they can borrow a book from the Kindle Owners' Lending Library for free," said Jorrit Van der Meulen, the vice president of Kindle EU.
"The unusual thing about KDP Select is that when this happens authors get paid. With record Kindle sales worldwide, and the recent expansion of the lending library to Europe, we expect the number of books borrowed this Christmas to increase significantly.
"We've seen authors experience incredible success with KDP Select - in only a year it's become commonplace to see KDP Select books on our bestseller list."