Earnings percentages not calculated correctly

Discussion Forums Technical Issues
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I reached out to customer service over a week ago about why the earnings percentages weren’t calculating correctly. I was first given a response about how Zazzle takes a percentage of the earnings when it was promoted via 3rd Party.I already new this but the math still doesn’t make sense why I would be paid a few cents over a few dollars for this sale. Then they gave me a generic example that had nothing to do with an actual sale. I asked them to look again at my example and please explain the math for this actual product.  

No one would respond unless I kept reaching out. Each time I am told thank you for my patience and they are busy with the holidays.  I have also seen a noticeable reduction in sales since I notified them of this. Wondering if anyone else has experienced similar problems?  I would appreciate any insight or if anyone could explain the math for the above sale and/or information on who we can actually go to that will address issues for not distributing earnings properly?  

While this instance would involve only a few dollars lost, lack of transparency and general apathy about not paying out proper earning percentages is very concerning.  I am looking for anyone who has betting insight on this or who can direct me to someone that can help solve the issue. Thank You.

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There is some information in these forums about this which you may be able to find by searching “earnings calculator” and or “user-options”. 

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I did read them before posting. Most of those are just explaining situations with 3rd Party percentages or discounts. That is why I actually posted an image of the sale with my post so that people can see this is not one of those cases. There is math that would justify only receiving 38 cents from the above sale.

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Just went thru 12 pages searching for a post from Mods, I quit at that point,  but did find this post and replies on page 12 of earnings calculator posts which may help you—
https://community.zazzle.com/t5/general-zazzle-discussion/please-help-me-understand-these-royalty-reductions/m-p/1553

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I looked through much of these already. Just as I responded to the other comment. This is why I posted a picture of an actual example. All of these explanations show why there may be some additional cuts for promos, etc. Nothing covers my situation where Zazzle keeps about 90% of the earnings and throws me a few cents. I actual have a recent response where they still did not explain it but know I am at least getting a confirmation that this is an actual error on their part. But no corrections have been made or communication on if they will be made. This is why I posted to see if anyone else is experiencing these issues or if they have found someone to actually help them resolve it.

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What were you thinking the calculation ought to have been? I am not sure I can see all the relevant data about the particular sale you screenshotted.

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Does it not show the screenshot?  The sale was for a phone case at $18.36 with a 14.9 percent royalty, which would equal $2.74. Also, this design was transferred from another product and has an additional 5% from $22.95 which would be another $1.15 Added together this would be $3.88. Even after taking the 20% for 3rd party I would still be left with $3.104.   Instead Zazzle lists the sale and percentage correctly but said the sale only generated 38 cents of which my percentage of that was 100 percent of that at  $0.38.  So really, instead of taking 20% for a 3rd party sale Zazzle took more than 90% of the royalty amount and recorded the sale as only generating 38 cents in royalties instead of $3.88 in royalties to justify doing so.   This is why I am asking if others have had similar issues - they have now admitted there is an issue but it has been over a week and nothing has been fixed and communication is evasive and my sales have suddenly and drastically dropped. I am reaching out - I am reaching out to see if others have experienced anything similar and who they have actually communicated with to get it resolved.

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Hmmm, something is clearly awry here. When royalties are reduced due to 3rd party referrals or because the customer added secondary content (a background) that reduction is reflected in the reports with a lower percentage. But here, the math is just plain wrong.

$18.36 x .149 = 2.735
$22.95 x .05 = 1.147
Total: $3.882

It’s almost like the decimal point got moved or something, because they basically paid you 10% of what the royalty should have been. Seems like a bug of some sort to me. Hopefully someone can sort it out for you, and hopefully it doesn’t become a trend!

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I  have been cogitating on this all day. The closest I can get to the 18:36 figure—
-( disclaimer I am a lefty dyslexic and hate math but here goes)
This is not figuring in third party and sale price—-just using the figures you posted—-
22.95 x.149 = 3.42 
22.95 -3.42= 19.53
19.53 x .05= .98
19.53-.98=18.55
18.55  is NOT  18.36
3.42 +  .38 = 3.80
close but where’s a cpa when you need one…
:thinking:
is the .38 your payment, or is it the amount paid for a change added, like adding a pouch for the ornament?
If . 38 is your payment, it  might be that someone got a very deep discount. I remember years back z employees purchased items for zero, or next to zero. If that were the case you would see evidence of it where the name and location show.

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This is the exact same situation another user asked about back in July and there’s never been a follow up.
Read that thread here.

Here’s the sales each of you posted:

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Yours is cut-off but you said in your post that is was transferred from something else to a value phone case, and that it was third party.  So the same unusual situation. Note that both then and now, the value cases are/were 20% off. They have a list price of 22.95, but are 18.36 with the discount.

@UlyssePixel never confirmed if 14.9 is their default royalty and you haven’t said either but I am going to assume it is for both of you and that’s where that percentage shown is coming from since with design transfers, you earn your default royalty, not the one for either product A or product B.  Except, value phone cases are an unusual product in that they have a set royalty of 5% that you can’t change. So the question is, as said in the other referenced thread, which policy is Zazzle using in this situation?

If they are honoring your default royalty (assumed to be 14.9% here), the net earnings would be $2.19. If they are instead holding to the 5% max they’ve set on this product, the net earnings would be $0.73. (See screenshot in other thread.)

However, some other inexplicable formula is being used in this situation. I couldn’t quite figure it out then but I’ve got it now. What the two line-items posted show is that the full list price of the value case ($22.95) is for some reason being treated as User Option. User Option royalties are 5% x the full $ amount of the User Option. Then the full $ amount of the User Option is subtracted from the total paid by the customer and the remaining balance is what you earn your set royalty on. Then those two royalties are added together to make your gross royalty from which any fees are subtracted.

So it goes like this:

$22.95 (User Option) x 5% = $1.15 royalty
$18.36 (total customer paid) - $22.95 (User Option) = -$4.59 (yes that’s a negative number)
-$4.59 x 14.9% = -$0.68 royalty

-$0.68 + $1.15 = $0.47 gross royalty

$0.47 x 20% = $0.094 referrer fee for it being a third party sale

$0.47 - $0.09 = $0.38 net royalty –> exactly what you both were paid

The math here is correct, it follows the standard formula they apply in calculating royalties with User Options. So now we know HOW they are arriving at only $0.38. The big question that only Zazzle can answer is WHY? Why on earth are they treating the list price of the value phone case as a User Option when someone transfers a design from another product to it?

@SalvageScapes  

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Thanks for confirming that this is happening to others, although that should be even more concerning probably. They have now already confirmed that the calculation is an error - they just won’t follow up with any corrective actions.

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Pleased to meet you.
I have the same problem as you and I assume they both sent the same generic communication.
Only two days ago, after almost 4 years of being here on Zazzle, I realized that the percentage you receive from your earnings, the percentage we chose, is incorrect. I asked for explanations and a little while ago I received a rather basic answer explaining what a percentage of a total means.
I responded now

"Hi Irene

what you unfortunately wrote to me without offense but for transparency does not make sense. Write to me how the percentage is divided, I think I know too. In fact, if you add the total data obtained as a sale or profit and apply the percentage I have chosen, you will also see in the browser which brings you exactly my figures.
Today I saw that there was another payment and I received the royalty percentage of 38% which does not correspond because according to accuracy the 38% of the total of 54.40 is €20.67, mathematics is used to say it is not an opinion, the calculation if you want to do it is the same wherever you do it, on any calculator. Instead you calculated €15.60 as a royalty, which if you allow me there is a difference and it doesn’t come out of any calculator. The calculation is very simple to do. You add the percentage of a total you want to obtain.
Therefore your communication did not respond to what I sent you. And proven to be true.

kind regards"

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Same situation. Not similar. But the same.

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As far as I’m concerned I have not authorized for a 3rd party sale, if the sale is a 3rd party referral or self-referral. My situation is very simple. Precisely because I did not give any authorization in this regard. And I know it’s not a forced choice. I have screenshots showing an inaccurate sales percentage. Of sales. Not a single sale. I have not received any response on this matter. Alone:
“… if the sale is a 3rd party referral or self-referral,…”.
But the “if” can be removed because it is not my case study.

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It’s all clear now. Thanks.