Marketing Fee Structure Punishes Creators Trying to Stay Afloat

[Jolanda]

I’d like to raise a concern about how Zazzle's 50% marketing fee on gross royalties unfairly penalizes creators who adjust their pricing just to offset increasing platform fees.

Right now, the more you charge for your design (by increasing your royalty), the more Zazzle takes in marketing — even if Zazzle's actual marketing effort remains the same.

Here's a real-world comparison for a 3rd-party envelope sale (250 units):

Set Royalty	Sale Price	Gross Royalty	Excess Royalty Fee (5%)	Marketing Fee (50%)	Net Earnings	Net Royalty %
10%	$212.50	$21.25	$0.00	$10.63	$10.63	5.0%
18%	$235.00	$42.30	$2.12	$21.15	$19.04	8.1%
22%	$245.00	$53.90	$2.70	$26.95	$24.25	9.9%

🧾 As you can see:

• Raising the royalty from 10% to 22% increases the creator’s earnings by ~$13.62…
• …but it also increases Zazzle’s marketing take by over $16 — simply because the royalty is higher.
• The marketing fee is not based on performance, actual advertising costs, or conversions. It’s a flat 50% of your gross royalty — no matter what.

🔍Why should a creator who raises prices only to survive platform fee changes end up being penalized by those same fees?

This structure discourages fair pricing, forces creators into low-margin work, and erodes the financial viability of maintaining a Zazzle store.

💡Suggestion:

• Make marketing fees performance-based or capped
• Provide per-sale transparency
• Stop penalizing creators who are adjusting just to stay afloat

Zazzle’s marketing strategy should empower creators — not punish them for trying to earn a livable income.

[Barbara]

"Innocent" question: Does it cost Z more to market a product that has a 20% royalty than one with a 10% royalty?

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[Jolanda]

Great question — and I think you're making a point many of us are struggling with. It absolutely doesn't cost Zazzle more to market a product with a 20% royalty than one with 10%, yet their flat 50% marketing fee takes a bigger cut the more you charge. That extra money should go to the creator, not Zazzle. It feels like we’re being penalized for trying to earn a fair rate for our work.

[Windy]

I had not thought about this particular aspect of the marketing fee before. That is OUTRAGEOUS.

Blooming Outrageous.

[Jolanda]

🧮 What Does Zazzle Really Need From Your Sale?

Let’s break down a recent 3rd-party envelope order I received (250 colored envelopes sold for $235.00 with an 18% royalty):

Item                                                           Amount

Retail Price	$235.00
Set Royalty (18%)	$42.30
What I Actually Earned	$19.04
Zazzle’s Take (from royalty)	$23.26
Est. Production Cost (250 × $0.45)	~$112.50
Remaining Revenue (after full royalty)	$192.70
Estimated Profit (if royalty fully paid)	~$80.20

➡️Even after paying me the full royalty and covering production costs, Zazzle would still keep $80+ in margin on this single order.

So why take more than half my royalty too?

The 50% marketing fee isn’t based on actual ad performance or effort. It just scales with my royalty — effectively penalizing creators for valuing their time and work.

Let’s advocate for a more balanced system — one where Zazzle’s success grows alongside the sustainability of its creators.

[CapriWedding]

Make marketing fees performance-based or capped
Provide per-sale transparency
Stop penalizing creators who are adjusting just to stay afloat
Zazzle’s marketing strategy should empower creators — not punish them for trying to earn a livable income.

I take my hat off to you for what you have exposed.
Needless to say, I completely agree.

[CapriWedding]

Sorry the system automatically published my same comment twice

[Zorinda]

Jolanda, you raise excellent points.  Just to survive Zazzle’s punitive marketing fee tariffs, we all need to raise royalty rates which, based on the new formula, benefits Zazzle dramatically.   With marketing fees as a % of the gross product price as opposed to the base price, as product prices necessarily increase with higher royalty rates, Zazzle massively increases their take.  So they win. Big.  What you don’t mention is that not only do we lose, but CUSTOMERS lose as they will be forced to pay substantially more not to just cover our losses, but to cover the fact that Zazzle inexplicably extracts a hefty fee from the incremental price hike over the base price. Zazzle in effect gets to double dip.  Either the customers pay up, or they are repelled and leave without making a purchase. 

[MadjackGG]

At least with Redbubble they're upfront with their ridiculously punitive 'account fees' and how much they're taking.

I really didn't think Zazzle would fold this way; I've gone from a store that until quite recently was making 1-2 sales per day and which typically returned a 9% actual royalty, to a store that's making next to no sales and if I used the recommended royalty rate, pennies on the dollar on whatever I might sell.  Obviously the economy is a big factor here, but Zazzle's changes have to be a major factor as well. And in typical fashion, Zazzle is saying nothing.

Really disappointed, considering the time and effort I've made over the years to promote and develop my Zazzle storefronts.