I think these changes are going to have a negative impact on Zazzle itself, despite their short-term gains by taking so much in Marketing fees. Creators are already increasing their royalty percentages to offset the new excessive fees, and will continue to do so, making products all across the site more expensive for consumers. Eventually, Zazzle will get priced out of the market, especially as we have been suffering from runaway inflation for a couple years now, and the cost of living continues to increase, meaning consumer spending continues to drop. It will especially impact the Digital Downloads market, which in economic downturns usually thrives. Creators will either remove the digital option altogether, or increase the royalty to the max. either way, customers lose out, and Zazzle does, too.
“Creators are already increasing their royalty percentages to offset the new excessive fees, and will continue to do so, making products all across the site more expensive for consumers.”
I think that it could be a win / win for zazzle to have designers raise royalties and prices in many cases. They grab even more cash as those designers just try to make up for lost revenue. Many buyers are more price inelastic than you think; not all are looking for the cheapest price. Obviously that depends on the category, competition and quality / originality of designs.
I used to think that about changes at sites. But there are a lot of people that have money, spend with purpose, and value the custom experience. For example, look at the heart shaped walmart cake fight on social media. That is a case of 2 different types of buyer and their behavior.
I was selling on Etsy around the credit crunch, and people were saying to the same thing about costs and postage going up - buyers still buy. I was still shipping internationally even though it was customs taxed.
Digital here currently is not what “digital products” are out on other site. IF they were Zazzle would make a lot more sales on those products. I asked, along with other users, when they were going to get real digital products the way the rest of the world uses the term outside of Zazzle’s site.
Time will tell though.
This sudden emphasis on marketing over creating is going to impact the quality of the offerings here too. I used to encourage so many creatives to sell their amazing work here and now I definitely am hesitant to talk Zazzle up with the way our earnings are suddenly and sharply decimated and the games we have to play to figure out how our earnings are calculated.
Absolutely. This does not bode well at all. Complicated calculations, behind the scenes shenanigans, 3rd party ghosts, bare minimum data, marketing lines to push… more fees. And it’s not any better on the other options. It’s getting bad everywhere at the same time. How convenient.
If Zazzle had said, “Yes, we are now charging Marketing Fees, but before anyone gets upset, let us assure you that with that revenue we will be significantly increasing our own marketing efforts with tv ads, google ads, etc. that will bring a lot more traffic and sales…” that might have justified this somewhat.
If I knew these MFs were going toward something that would bring increased sales volume, I could justify making less per sale if I was making a lot more sales. And when I typed MFs I admit it brought to mind another meaning than Marketing Fee and this alternate meaning will be my new ‘affectionate’ nickname for these unjust charges.
typing MF has been bringing me joy. 😄
@klstock @Connie
One thing that I have already mentioned and posted about Z salary increases,in another thread:
Decided to elaborate further here: The probability of Z building in salary increases for their employees, board members, CEO, etc., without transparency/i.e. showing that info, since they are a private company, we have no way of knowing what is really included in the latest formula. (just remembered, I have a copy, in my old files, Zazzle,_Inc._Board_Packet_1.pdf, dated 2016)Unless of course we were included in their daily/weekly/monthly meetings. Interesting read. And before anyone asks, no I won’t send it to you, or post it here, I checked and it is not searchable on Google, so don’t get stressed MODS, Just wanted to mention that I have it and it exists.
I believe and am hearing from other SKs, that we as shops are financially deeply affected by/in the changing formula Z builds out. I feel that we SKs are being pushed into an untenable position, royalty wise. That’s why I am bringing up the point about Z employee salary and its possible role in the formula Z has/is constructing.
It is something for us as shops to consider, along with all the other variables involved in this issue.
I’m going to start using MFs too!
It’ll be a win/ win for Zazzle at first, IF most sellers follow suit and raise their royalties, but I think eventually they’ll lose customers because there are so many other marketplaces out there with similar offerings.
I didn’t realize it was Marketing Fees. My very first (and only) thought was your “alternate meaning”!
I think the biggest problem that is causing everyone (hopefully undue) stress is the fact that the new calculations are just too difficult for designers to understand and grasp easily (at least that’s the case for me).
So, instead of panicking, my plan is to sit back and wait for Zazzle to process everyone’s concerns and then rework and simplify their new Terms and Conditions and express them in a way that everyone can easily understand.
Doing unnecessary things, for example, like renaming the Associates Program into the Ambassador’s Program is just one of several issues that muddy the water.
We just need basic information that’s clearly written in a simple format that everyone can understand easily, so each designer can decide for themself if Zazzle will be a viable income source going forward.
It is all very confusing. I have written several emails after so much reading as testing. No answers. I buy many of my products for may art shows to sell them there (not raising the prices) to promote my Zazzle store. Since April 2025 I am receiving no referrals. I have expressed my concerns because I market a bit differently with all my shows. I have been with Zazzle since 2014 and an totally frustrated.
I think I’m with you there, I think there is a lot of worried artist and z needs us, so I’m hoping they revise or simply things for us. My plan is to sit back and wait hope things get better soon, feel so disheartened this last few months 
It has impacted how I use Zazzle in a huge way. I really hope things change. There have been so many changes since I have been on their platform. Only two orders since April as well. I have very disheartened like you Kelly-Marie.
Can definitely see the massive reduction in Royalties.
In one sale I sold 5 shirts for $109 at 20% commission.
Previously the Royalty would have been $21.80 - $1.09 excess royalty fee = $20.71.
Now, it’s $21.80 - $7.63 (35% Marketing fee for clothing) - $1.09 = $13.08.
As of 1 April I’m losing over a third of my Royalties.
If you sell Wedding or Stationery products, you’ll lose half of your Royalties.
The only way just to recover the Royalties you used to make before 1 April, is to drive every single sale yourself, through referral links.
If you’re having to do that anyway, then setup and direct them to your own Shopify store, where you can generate a 100-200% margin - e.g. you can make $10 per shirt, not $13 for five.
Even Etsy’s better than Z now.
Two years ago 60% of my profits were through Z.
Now it’s 11% Z, 20% Etsy, 63% Shopify, 6% other.
My options are to focus on marketing for Z, to get back the 10% of total income I’ve already lost; or spend that effort driving customers to Etsy and Shopify, and get an increase of 20-50%.
In the words of Butch Coolidge: “Zed’s dead baby, Zed’s dead”.
…cue credits.
And note, that the Self-Referred Royalties are on Net Revenue.
So the Self Referred commission on a Wedding item (nominally 50%) is 50/150 times the sale price, i.e. 33% of the Gross Revenue.
Clothing is 35/135 = 25.9% of Gross Revenue.
But when Z take out their new Marketing Fee, that’s off your Gross Royalty.
Examples:
Wedding : for a $100 sale.
Self Referred:
Royalty = 50/150 x 100 = $33.33
Or else (if Royalty maxed at 50%):
Royalty = 33.33 - (33.33 x 50/100) - (33.33 x 5/100) = 15.00
That’s Nominal Royalty, less 50% Marketing Fee, less 5% Excess Royalty Fee.
So for a 50% margin on the Net sale price, you only get 15% of the Gross sale.
For a Nominal Royalty of 10%, you’ll only be paid 5%.
Clothing : for a sale of $100
Self Referred:
Royalty = 35/135 x 100 = $25.9
Or else (if Royalty maxed at 35%):
Royalty = 25.9 - (25.9 x 35/100) - (25.9 x 5/100) = 15.54
So for a 35% margin on the Net sale price, you only get 15.54% of the Gross sale.
For a Nominal Royalty of 10%, you’ll only be paid 6.5%.
Effectively, you need to max out all your Royalties, and then Z limit your Royalty payout to 15%.
Previously the Royalty would have been $21.80 - $1.09 excess royalty fee = $20.71.
Now, it’s $21.80 - $7.63 (35% Marketing fee for clothing) - $1.09 = $13.08.
As of 1 April I’m losing over a third of my Royalties.
That’s not a totally fair comparison as the $20.71 is for a None sale whereas the $13.08 is for a Referred sale.
In both cases, your Net Royalty on a None sale is the same $20.71.
The Net Royalty on a 3rdParty sale is $16.35 vs $13.08, so a difference of only $3.27.
As you say, if these shirts had been in the wedding category, it would have been a bigger hit as a Third Party sale - $16.35 vs $9.81, so $6.54 less.
So it seems on the surface like wedding designers are being punished with the highest fees but on the flip side it’s also the highest pay out (50%) if a self-promoted sale. Which is what Zazzle is pushing hard for us to do and why they call it “an opportunity”. It’s all a numbers game depending on your royalty % and what bracket you’re in, but it is possible to be making more under the new system. People doing wedding invites at only 5 or 10% to “stay competitive”, if they were in the Promoter Program (35% on self-referrals), that means their earnings were 40 or 45%. Now on the same self-promoted sale, they’ll be making 50%.
It’s actually t-shirt sellers who took the biggest hit under this new system. If their royalty was 14.9% and they made the 35% referral commission under the PP program, they were earning roughly 50% of the total sale. Even if they were selling at the minimum 5% royalty, plus the 35% PP referral, that’s 40%. Now they are capped at total earning of 35% if a referred sale. So no matter how successful they are or have been at self-promoting, there is no where for their earning to go on a referred sale but down. Instant Downloads also fall into this unfortunate scenario of earning less now (way less in their case) as a self-promoted sale because of the earnings cap applied to them.
So comparing same-to-same:
* A self-referral under the old Promoter Program at flat 35% vs the variable self-referral under the new AProgram:
There are some cases where your total earnings could be more now than before, but there are many cases where because of the cap, you’ll earn significantly less. And there’s the middle area where you’re earning just a little bit less, like in the above 50% example, it’s just $1.09 less
* 15% self-referral vs 15% self-referral (now ‘Cross-Promo link’ meaning you used your RFID):
I haven’t looked a whole lot at this category of numbers but from what I have, you’re most likely to earn less here as the 15% referral commission isn’t enough to make up for the 35-50% royalty carve-out that used to be a flat 20%. Note that in the special case of Instant Downloads, because of the total earnings cap on self-promoted “clean link” sales, you’re better off promoting these with your RFID. (Link)
* 3rd party sale vs 3rd party sale:
Total earnings will always be less now because of the higher carve-outs w/o making any of it back as a referral commission.
* None sale vs None sale:
Nothing has changed here, earnings will stay the same (unless the royalty happens to be between 10.01 and 14.9 in which case you’ll now incur the transaction fee you didn’t have before.)
The new fee structure does stink especially since most are reporting a much higher percentage of 3rdParty sales because this new system is purportedly tracking things better. BUT I have to say this … I never had any interest in joining the Promoter Program because I do very little promoting and when I do I prefer to gamble on getting 15% of everything rather than 35% of just mine or nothing at all. But now that by default I have this, uhm, “opportunity” to make the higher self-promo variable rate on “clean” referrals, I have gotten a couple of very unexpected sales/referrals at the “clean” rate even though I haven’t been intentionally putting clean links out there, thus earning me much more than I would have before as a None or 15% RF sale. So knock on wood but as crazy as this new system is, it does have some surprise benefits.
Let’s face it. Z is in the business to make $ and I’m sure they are smart and know exactly what the numbers crunched mean for their profits and ours. Z is WAY smarter at promoting and I’m sure has a trove of resources and channels we are not knowledgeable about. So to date when they were promoting our products… they did so very successfully and it benefited both Z and the designers because though it was costing them $ to advertise, just by virtue of increasing the volume of sales the designers were making helped Z itself as well…it was a win win till now.
What has now changed and I’m hoping they are going to either rethink the strategy or adjust it… they have probably decided that since they were paying for the ADV of products they should make more of the cut of the sales on those they are responsible for bringing in the business for. This is not a statement of knowledge… it purely a guess.
I do what I do here because I LOVE what I do and I felt a value for my time and talent. But when I have to change my focus away from designing and struggle with trying to learn how and where to promote… it’s not fun. I’m not making excuses…it’s my fault for not learning this earlier but now it’s being forced on me (by my stupid decision to join the associates program) and in the meantime while I’m trying to learn the ropes it’s a game of trying to see how much time I need to spend on which task to survive. I still need to create fresh content on a regular basis… but when?
I wish you all continued success… in promoting