Can someone explain what upcharge sales are?
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Not sure, but I think it’s things like envelopes or frames or stuff that the customer added to the product.
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$7.36 x 5% = $0.37
So these are just the same ol’ User Options that have been a thing as long as I can remember.
^ User Options, such as special sizes and embellishments, pay a fixed royalty of 5%.
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Upcharge sales are additional items sold to customer. At McDonald’s you go in to get a burger. They ask you “do you want fries with that?” You say yes. That’s an upcharge sale. At Zazzle when you say yes to a higher grade of paper, for example, you pay an upcharge on that extra thing added on to the basic product you wanted. Designer gets five percent of that extra charge.
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I didn’t realize that the paper types count as an upcharge! For example, say there’s an invitation with the price of $1.92 for the regular matte finish. So if a customer upgrades to the most expensive paper type, instead of getting the full royalty on $1.92 + $1.37 (3.29), we get the full royalty on 1.92 and only 5% on 1.37?
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That brings up another interesting question. If you set the paper type to a more expensive paper through product merchandising, do you receive your full royalty for the more expensive paper vs. only the 5% upcharge royalty? (Or maybe that WAS your question just stated in a different way?)
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No. It doesn’t matter what you set the default marketing to, an upcharge will always be an upcharge. Like with pillows, doesn’t matter if you default market them to zipperless or as any of the more expensive options (cotton, outdoor or polyester w/ zipper), that extra is factored as an upcharge regardless.