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Royalty

mrfe — Sun, 01 Oct 2023 18:06:18 GMT

Can anyone explain why there are 2 royalty rates and why the actual royalty is only 2.75?

Thanks

Re: Royalty

LMGildersleeve — Mon, 02 Oct 2023 12:52:07 GMT

Looks to me like it was a product that sold envelopes. The 10% is the royalty for the card and 5% because they added envelopes.

I could be wrong because I don't know what the product was.

Re: Royalty

Jules — Tue, 03 Oct 2023 18:27:02 GMT

I agree with LMGildersleeve’s speculation that this could be a sale of cards and envelopes. 5% is the fixed royalty amount for an ‘optional extra’; envelopes are always treated like this by Zazzle.

My additional speculation is that Zazzle have calculated the royalty on each card sold separately, rather than in total. Making this assumption, and further assuming that they will have made rounding adjustments on each separate calculation, I get the following result:

25 cards @ $28.50 total, therefore 28.50 ÷ 25 = $1.14 per card.

25 envelopes @ $1.50 total, therefore 1.50 ÷ 25 = $0.06 per envelope.

Royalty per card = $1.14 x 10% = 0.114, rounded to $0.11. Therefore 25 cards @ $0.11 = $2.75 royalty.

Royalty per envelope = $0.06 x 5% = 0.003, rounded to $0.00. Therefore 25 envelopes @ $0.00 = $0.00 royalty.

I could be quite wrong here. But that is the only way I could get the figures to come out at a total royalty of $2.75.

Re: Royalty

1234Shine — Tue, 03 Oct 2023 18:44:45 GMT

@Jules Bravo! You are so analytical.

Re: Royalty

ColsCreations — Tue, 03 Oct 2023 18:53:23 GMT

Envelopes are $0.17, the option to "Remove Independent Creator Credit" is $0.06. So they bought 25 cards or postcards (congrats on the sale!) and opted to remove the credit for a total of $1.50 more, which is your User Option line there at 5%.