Here is how I track Kindle books so I can buy them when they become cheap or free.
First, set up a Wishlist on Amazon called Kindle (or whatever you wish to name it). I add books as I learn about them but I also browse books sometimes and add whatever looks interesting. If you're interested in any/all books by a particular author, don't add them here - later on you can add an author to your tracking list.
Now go to EReaderIQ.com and register for an account. Click on "My Watch Lists" then "Import Your Wishlist" and follow the instructions. I won't get any more specific because they change the procedures when Amazon changes how their systems work.
I have it set to notify me when a book becomes free, but certain books that I'm willing to pay for I can set a price for.
If you want to track all books by a particular author, go back to "My Watch Lists" and at the bottom of the page is a box for tracking authors. This will notify you of ANY drop in price. It can be a bit annoying if an author's books are frequently discounted for a small amount. I get almost daily notifications for Ted Dekker books at $9.99 so I'm going to drop the author search for him and put books on individually.
Bonus tip for free books:
Amazon has a top 100 bestseller list here. Notice that at the top of the list you can also click to view the Top 100 Free books. Now look at the left side of the screen at the categories. You can click down to see the top free books in any given category -
e.g.
Biographies
Biographies/Historical
Biographies/Historical/United States
Biographies/Historical/United States/Civil War
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