Dont't understand royalties on 3rd Party + Transfert + User Option

UlyssePixel
Contributor

I just had a sale and I do not understand why I have so low royalties on it:

RoyaltiesRoyalties

Normaly my royaties should be : (18.36*14.9%  + 22.95*5%) * 80% (because of 3rd Party) = $3.11; but I only get $0.38.

Is this a glitch on royaties computation or do I miss a computation rule because of 3rd Party or/and User Option ?

Thanks for your help on understanding this.

8 REPLIES 8

PenguinPower
Valued Contributor III

Isn’t there a royalty limit on value phone cases of 5%? 

 

Thanks for your response PenguinPower.

To my knowledge this 5% limit only apply to Samsung cases (and I dont know why).

I already had a few phone cases sales and I alway got my 14.9% royaties ( I never had any Samsung cases sale). I dont know what is "zazzle_valuephonecase"; so I dont know if the 5% limit apply for this product.

BUT:

  • I think that if a 5% limit applied, I whould see 5% royalties rate and not 14.9%
  • Even with 5%, my royalties should be $1.65; much more than what I got.

PenguinPower
Valued Contributor III

I’d agree that you should see that 5%, but the transfer may have goofed something up in the display? It’s all I can think of, as the math clearly doesn’t compute.. not to mention that this product does not appear to have “user options” that add to the cost… the second price looks to be the non-sale price, so I’m not sure what’s happening there. 
I don’t think you are the first person to have weirdness with the royalty on this product. 

I think I undestand how the royalties was computed and where the glitch is.

Normaly, $22.95 is the price of the the final product bought by the client; it not not an option. This product (probably a samsung galaxy case) is, for an unknow reason, limited to 5% royalties. So I should get 22.95 * 5% = $1.15 minus the 3rd Party commissision. This should give me 80% of $1.15; that is $0.92. But I only get $0.38.

So, I bet there is a glitch in the royalties computation on the 3rd Party commission. Computation for  the 3rd Party include the 14.9% on the initial product. So the 3rd Party get: (14.9% * 18.36 + % * 22.95) * 20% = $0.78.

And I get my royalties minus the 3rd Party royalties = $1.15 - $0.78 = $0.37 only one cent diffence with what I got.

The glitch is on the 14.9% royalties on the initial product: it is computed for the royalties of the 3rd Party but not for mine.

I should be happy the product bought does not have a much lower price than the initial product. Otherwise I would have get negative royalties.

It would be nice if the Zazzle could validate my analysis and correct the glitch if there is one.

ColsCreations
Honored Contributor II

Value phone cases, regardless of model, all have a list price of $22.95. With the 20% off sale, they all are $18.36: (8,451 value phone cases, sorted by highest to lowest price)
This because this product has a set 5% royalty the designer cannot change.
Regardless of which phone model you choose or which finish (glossy or matte), the price always remains the same and those are the only choices a customer can make on this product (model and finish). There is no "user-option" available here that adds to the final cost the customer pays. So your customer paid $18.36 for their value phone case.

When a design is transferred from Product A to Product B, neither A nor B's royalty is applied; instead, the default royalty you've set for your account is what is applied to the sale.

This is a really interesting and probably rare case of a design being transferred to another product  (which should earn you your account-wide default royalty which I am assuming is 14.9%) except the product it was transferred to has a specific 5% royalty set by Zazzle. So which rule/royalty takes precedent in such situation?  Either way ...

The customer paid $18.36 for the case. If your default royalty of 14.9% was applied to that because it was a transfer you should have earned $2.19 on this sale. If the standard 5% for this odd product was applied instead, you should have earned $0.73. I have done experimental math six ways from Sunday and can't come to the $0.38 you were credited with.

Will be interesting to see what the official explanation is for this unusual situation.

ValueRoyalty.jpg

 

Store IconStore IconWebsite IconFacebook IconPinterest IconInstagram IconBenable IconNight Cafe IconDiscord IconBuy Me a CoffeeOut of Stock List

Not in my case. I have set a default royalty of 15%, but because "maybe" I transferred a design from one product to another, I will receive a royalty of 1%. According to a member of the the techniclal team, this is correct

Emma
Moderator
Moderator

Hi @UlyssePixel , 

Apologies for the delay on this one. I've passed this along to our Team to check for any possible technical issue here, and will update the thread as soon as the reason for this has been confirmed. Thanks for your patience! 

- Emma 🌻

UlyssePixel
Contributor

Hi @Emma ,

Thanks for your answer