June 29, 2010 Cindy O'Neal
Yes, Amazon does keep a copy of every book you purchased from them on the Amazon servers. If you delete any of those books from your Kindle, you can always redownload them from the Archives available on your Kindle. You can also go to your Account and Manage Your Kindle area on Amazon and resend any of the books in your archives to your Kindle.
Amazon does not keep a copy of any of your personal files, or books you have downloaded from other sources and just transferred to your Kindle via your USB cable. One of the nice things about the Kindle is that you can get books for free from many other sources and read them on your Kindle. Make sure you keep copies of your personal files and books you have obtained from sources other than Amazon in a special folder somewhere other than your Kindle. Make a folder on your Desktop, or in your My Documents folder. Name it anything you want, but use it as your main storage area for your non-Amazon ebooks.
You can also create a folder on your computer and the next time you have your Kindle connected to your computer via the USB connector, left click and drag the entire contents of your Kindle to it. This will copy all the folders to your backup folder, leaving the originals on the Kindle. I do this at least once a month so the files on my computer reflect the Kindle files relatively currently. You just never know.