Sweet Spot or Sales Slump? Navigating Royalties in the Age of Marketing Fees

[Susang6]

With the introduction of Zazzle’s marketing fees in April, many of us began reevaluating what our creative work is truly worth. I tried to offset those costs by raising my royalty rate hoping it would balance the equation without disrupting sales.

Instead, my sales plummeted.

I assumed shoppers were passing over my now higher-priced products in favor of similar designs at lower price points.  Longtime gift shop buyers who used to stock my cards and tissue paper disappeared. Then in June I lowered the royalty on my most popular items, and soon after, the orders returned.

Did I discover my “sweet spot”? Not quite. What I found was my long-lost repeat customers and while selling to them again brings joy, earning significantly less for the work I’ve poured my heart into remains discouraging.

So now I’m curious:
Have you adjusted your royalty rate to accommodate the marketing fees?
Did it affect your visibility or sales?
How do you strike that balance between pricing with integrity and staying competitive?

Let’s talk about what’s working, what’s not.

[Jadendreamer13]

I’ve raised my royalty from 10% to 15%, and my views and sales seem to be unaffected by the increase (though I don’t sell in the invitation niche). However, raising my royalty to 15% still does not result in me earning 10% of the sale.

I’m going to let this new rate ride for a while, and then I’m going to raise it again. I don’t know why Zazzle didn’t just raise their prices  instead of taking money out of our pockets. It’s not like designers were making much money from each sale to begin with.

[Susang6]

I agree with you, Jadendreamer13. Zazzle pulling more from sellers through marketing fees feels off especially when there’s a simpler alternative. Raising base product prices (even modestly) could help absorb those costs across the platform, instead of leaving sellers to raise royalties just to keep up. That shift is what’s driving Zazzle’s prices higher not greed, just survival.

It’s frustrating, especially when so many of us are trying to maintain ethical pricing and still earn enough to justify the time and creative energy we put in.

[Van]

My views and sales went down well before "the change" of April 1st. They seem to have begun the spiral around the same time Z asked us to create unique backgrounds for our products and do more to market them. Most of my sales were 3rd party or none. I don't think I've seen a 'none' since April 1st, almost everything seem to be 3rd party. Searching for a sweet spot is made, imo, more difficult by not easily being able to spot if the sale was a regular affiliate or Z.

Before the April 1st change, most of my royalties were set to 14.9, some higher priced items less. I could make zero sense of lowering royalty to 10% as Z suggested when potential marketing fees and higher excess royalty fees were going to cut into what I earn anyway so I raised that to 16.9% to try and get a few extra pennies back. As an experiment I have put a few t-shirts at 20% and was surprised to sell a couple. From what I can tell, even at 20%. I make less than pre-April 1st at 14.9. I cannot see intentionally giving myself a 'pay cut' by lowering royalty to 10% and then potentially having a chunk of that royalty taken back as marketing fees.

I did just make a 'self' sale which is extremely rare for me (I stink at trying to market.) When I tallied the royalty with the referral amount I ended up right at the 35%. My royalty was set at 16.9% and was $1.69 on $16.62 ( which according to my rough math is around 10%...) I'll never be able to wrap my old head around how they are calculating all this.

I'd like to hear more from fellow designers about their experiences with 'none' and 3rd party since I don't have the volume to crunch things. Have all 'none' sales flipped to 3rd party?

I'm with Jadendreamer13 on letting things ride for now to see how it goes. I do wish Z would clearly show if it was a z sale or regular affiliate sale and I also wish we were allowed to change our royalty rates more than once a month in order to feel out the market. 

Susang6, glad to hear your gift shop buyers are back! I thought there was a discount for volume buying but I never even thought about gift shops! (Imagine having a 'private' store with prices specifically for resellers and being able to set one's self up with a good many resellers....)

[Susang6]

You've made some excellent points, especially about the difficulty in tracking where our sales are really coming from. The shift from “none” to 3rd party has been baffling on my end too I wish Z would add clearer attribution so we could actually analyze what’s working. I’ve also been experimenting with royalty adjustments and marketing tweaks, and I relate to that feeling of chasing pennies just to stay afloat.

That self-sale + referral combo is actually fascinating like a glimpse into the math that rarely makes sense up front. I agree, the whole structure seems like it’s shifting beneath our feet while we try to stay balanced. And yes to more flexibility with royalties! One change per month feels rigid when the environment is evolving so unpredictably.

I hadn’t considered the reseller angle either, but that gift shop insight got my wheels turning. It would be incredible to have a way to set volume pricing or nurture reseller relationships more deliberately. Maybe Z will move in that direction someday, especially if more of us share ideas like that.

I was fortunate a few years back when a local gift shop owner featured my work in their store on a Saturday it really reminded me how important it is to market your artwork even after you sign out online. That personal outreach, handing out business cards, chatting with people about your creative journey... communities are often eager to support local artists, and it's a side of marketing that shouldn’t be overlooked.

If it fits here, I’d love to share a photo of my products on display from that day it’s a nice reminder that connection can happen in so many different spaces.

[Susang6]

.I recently lowered the royalty on my tissue paper designs to 10%. I had previously set it at 20.5%, but I started noticing that my pricing was pushing away my repeat customers who once supported me regularly. That higher royalty felt unsustainable, especially with the additional cuts from marketing fees and unpredictable affiliate structures.

Alongside the change, I upgraded the product itself by switching to a larger, premium paper type. The quality boost raised the base price, so even with the lower royalty percentage, the final earnings per sale aren’t dramatically lower—though they're still not what they were.

Why I made the change:

• To stay competitive and reclaim local buyers who found the pricing too steep.
• To test whether premium quality + lower royalty can strike a better balance between value and visibility.
• To open the door for resellers who might be sensitive to per-unit costs.

Pros of the 10% royalty:

• Products now feel more accessible, especially in local markets.
• Resellers and bulk buyers may be more likely to return.
• Sales volume could increase over time, offsetting lower per-unit earnings.

Cons:

• I earn less per sale, especially without affiliate or referral boosts.
• It’s harder to justify creative time when returns feel slim.
• Even with a higher base price, the numbers are still hard to predict

Sometimes pricing isn't just about profit it's about staying visible, staying viable, and staying connected to the people who appreciate our work.  I am hoping that the lower royalty will boost my views and sales. 

[minix267]

I too used to be at 14.9% for most of my items. now I have the majority at 23.9% just to make almost what I was making before.  I used to have more than 50% (prior to April 1) NONE sales.. now 98-99% are 3rd party. i may get 1 -3 NONE in a month of sales and I also had a SELF or tow since April. I have noticed that my NONE sales always seem to be very low priced items like a postcard or card or something.. which is annoying and suspicious. lol  I will say be increasing my percentages my take home pay (except for the horrendous month of April) has gone back to approximately what it was before...  Would I make more sales at lower prices...? Maybe. But if it's not an astronomical amount that wont help me pay the bills.    

[Susang6]

Like you, my royalty was originally set at 14.9% before April 1st. After that, things became unpredictable really expensive items stayed at 10%, while others fluctuated. I had some products at 16.3%, others at 17%. Tissue paper hit 20.4%, and cards climbed to 23.9%.

I waited, and waited but I never bounced back.  I recall you bounced back quickly and I cheered your success from the sidelines. You know how strong my card, download, and tissue paper sales used to be.  I even joked once that I felt like Hallmark! 😄 But despite everything, my stationery business didn’t rebound the same way.

One of my resellers even reached out, saying she couldn’t afford the new prices and asked if I could adjust. So, I lowered the cost of my tissue paper. It’s now back to a 10% royalty but I increased the base price where possible, using the 18 lb. weight and largest size available. That raised the overall cost slightly, letting me earn a few more pennies. Still, for me, it was worth it to give my resellers a price point they could manage.

[NigelSutherland]

I'm intrigued to hear that gift shop buyers buy from this site. That's a whole new market that Zazzle could aim for, perhaps with some kind of trade incentive.

[Jadendreamer13]

If you follow what’s happening on Etsy, becoming known as THE place to buy gifts is their goal. So, it makes sense that Zazzle will also head in that direction….

[Susang6]

I’m so glad you asked there is a bit of serendipity in having the right product at the right time, especially with seasonal items. But I’d say it’s a mix of things that helped attract resellers and repeat customers. Pricing definitely plays a role (especially when wholesale margins are in play), but I’ve put a lot of care into crafting descriptive titles and tags that speak to specific themes like gifting, seasonal décor, or DIY use.

I’ve also found that rotating tags and refining descriptions to align with trends and search behavior really boosts visibility. It’s not just about being found, but being found by the right audience. That’s helped position some of my tissue paper designs in front of  gift shop owners and decoupage crafters who come back each season for more.

And yes I agree, there's huge potential here for Zazzle to support that kind of trade model. Whether it’s through bundled seasonal collections or wholesale-style incentives, tapping into the maker and shop-owner community could open new doors for all of us.

If you’re posting in the Z community, try tagging your tissue paper collection, stationery, or whichever products fit the conversation. It’s a great way to connect with real shoppers, since these threads show up in Google search—and many customers are members too. From what I understand, customers are z members and can browse your tagged items right from the Show Me boards. (note many customers have (wish list collections or collections with products they have purchased)

Just a quick heads-up—if you peek at my store and notice some listings missing descriptions, that’s actually due to a recent bulk-edit mishap. I was trying to add an AI transparency tag, and it ended up wiping out hundreds of carefully written descriptions. I’ve contacted Zazzle to see if they can help restore them, and I’m slowly rebuilding in the meantime. Definitely not how I’d planned it

[Barbara]

I never changed my royalty, keeping the 20% I've always had, so that isn't the reason my sales dropped off. Additionally, it seems maybe some products have been reduced in price. I noticed mugs in particular, so I assume there are other products with reduced prices too. Hasn't made a difference in my sales.

I don't know that our royalties make a huge difference. I think Zazzle itself is in a slump, and, of course, summer is a horrid time to judge sales since it's always been a bad season.

With my morale being currently squashed, I'm not designing for Zazzle at all, anything new being only an afterthought while pursuing my painting hobby as in, "Oh, this might look good on a few products." Not that new designs sell all that often.

I feel sorry for those who have relied on the income from Zazzle.

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[Susang6]

Hi Barbara, I know this season has been discouraging for many of us, and I absolutely respect your creative shift toward painting when inspiration feels distant.

That said, I think we also need to look beyond “summer slump” as the core reason behind low sales. Having run my own business before, I learned quickly that every season offers opportunities if we’re willing to adapt. When things slowed, I’d tweak pricing, run time-specific promotions, or work with community leaders to boost visibility. Sitting back and hoping autumn turns things around wasn’t viable then, and I don’t think it works here either.

Zazzle’s fee structure and reduced sitewide promotions feel like more direct contributors. For example, even with a 20% royalty rate, earnings break down like this on a $25 item after a 15% discount:

Royalty Rate	Customer Pays	Gross Royalty	Marketing Fee (≈50%)	Excess Royalty Fee	Net Earnings
20%	$21.25	$4.25	–$2.13	–$0.21	≈ $1.91
10%	$21.25	$2.13	–$1.06	$0.00	≈ $1.07

So even at 20%, the difference isn’t as dramatic as it seems once fees and discounts are factored in  and that’s assuming the customer is still willing to pay the higher price. If pricing is a barrier, we may be losing both sales volume and revenue.

That’s why I’ve been floating the idea of a “First Monday” deep discount day 40% off sitewide to reinvigorate shopper interest. But I believe it shouldn't stop there. Weekly discounts should remain active and consistent throughout the month to keep customers engaged. Predictable promotions would give buyers incentive to return regularly and help us, as designers, build marketing rhythms that reinforce visibility. (My idea have not submitted it to Zazzle) 

In my experience I have found that strategic momentum matters more than seasonality. We all deserve a platform that meets us halfway with tools that empower rather than obscure. Thanks again for sharing, and I hope we can continue pushing these kinds of practical ideas forward.

[Barbara]

I first noticed a distinct downturn in sales during the pandemic, and I just now took a look at my payments before, during, and after. It was completely clear--for me, anyway. I earned approximately twice as much before the pandemic, then it dropped precipitously during, and it hasn't recovered since. So, I doubt it's the recent phenomenon of tariffs. My notion is that the lockdown changed people's habits. People are social, and when that stopped, why buy stuff to show off? Why buy things for gifts when there were no parties of any kind? Why, even, get married? And then, there are all the people who lost their jobs and even their businesses. I don't know about other countries, but it appears the U.S. hasn't completely recovered yet, and socially, we may have changed.

Zazzle used to have "flash" sales, but at some point and for some reason, they stopped. Maybe they found they were too consistent, and people who would have been buying didn't, waiting for the next sale. This dawned on me very recently when there were a few things I wanted, but I waited for Amazon to have their Prime Days. That's when I made the purchases.

Will things change? Probably, but will it be for the better or worse? I've no idea. All I know is that I'm happier painting than I was sitting at the computer for hours every single day. Essentially, the downturn in sales caused me to reevaluate what I was doing.

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[Susang6]

Hi Barbara, I appreciate you opening up sales slumps are never easy to make sense of. I think the pandemic shook up the way people shop, but not always in the same way for everyone. For me, it was actually a major uptick. During lockdown, facemasks took off I sold thousands. And I wasn’t alone. Global numbers show face mask sales skyrocketed, and in the U.S., online shopping as a whole went way up while brick-and-mortar sales dropped.

I totally hear you on changing habits, though. Still, I believe pricing plays a bigger part in sales than we sometimes give it credit for. With the royalty hikes, a lot of products got more expensive, and let’s be honest online shoppers tend to look for deals. If prices edge past what people are used to paying, it can push them to competitors or bigger platforms like Amazon.

Also, those flash sales Zazzle used to run? I think they helped keep momentum. Waiting on a sale is human nature we all do it.

Like you finding joy in painting again, I’ve leaned into my own creative rhythm. I’m working on an ebook now and hope to publish it soon so even in the slower seasons, there’s still something meaningful in motion.

[Jadendreamer13]

I have a theory that the threat of tariffs may have caused a drop in Zazzle sales, and talks about tariffs seemed to coincide with the announcement of the Ambassador program. So we won’t be able to pinpoint the cause of the drop in Zazzle sales. Keep in mind that I have no expertise in politics or economics, and this is just my theory.

[Susang6]

There’s been a lot of speculation around the root causes of Zazzle’s sales slump, but I believe the clearest factor is pricing. Many designers raised their royalties to offset the marketing fee, which unintentionally pushed prices higher. Combined with the Excess Royalty Fee for anything above 10%, it’s become harder to offer competitive value especially with fewer deep discounts than we used to see.

Like you I would like to point fingers at external factors like political policy or tariffs, but I think that distracts from what we can actually influence. Zazzle’s past success relied heavily on customer value perception, and right now that perception has shifted.

One idea I’d love to float: what if Zazzle introduced a predictable discount rhythm say, the first Monday of each month, 40% off everything sitewide? It would give customers something to look forward to and allow designers to plan, promote or other marketing efforts around it. A consistent cycle like that could help rebuild trust and reinvigorate traffic and repeat customers.

I know the platform is still evolving, and there are promising signs for POD growth overall. But price transparency and promotional strategy are key levers we can and should talk about openly.

[CBolton]

I haven't even changed my royalty at all. Really not looking for big bucks or anything like that I think it's just fun to create designs and put them on products and see where it goes. 
My last NONE was 12/16/ 24, after that everything has been THIRD PARTY. 
My last sale was in March nothing until just recently 7/4/25 ( which I didn't know I had a sale ) was an Invitation and a card. 
I usually get notified of a sale and I wasn't which is weird. My royalty is only like 5% which doesn't bother me, and I don't like paying high price so I figured other's don't either. 
During the pandemic I had a lot more cancelations, but I still was selling almost every month.
Isn't almost all products on Zazzle made in the US? I'm still hoping sales go up more then they have been. 
Good luck to everyone

[Barbara]

Just a note: Depending, of course, on what kind of product it is, even those made in the U.S. often use parts from other countries. I've encountered honest manufacturers who will say "assembled" in the U.S., but they seem rare.

As for the general conversation here, I started growing weary of working on Zazzle products a bit before the pandemic, and as time went on, my weariness increased. So, it's not so much what happens or doesn't happen here that's made me slow way down. It's more that I tend to be, shall we say, a tad fickle with my interests. Right now, I'm testing the pigments in my sets of watercolors, fascinated by their properties and how they react with each other. Besides being fickle, I'm a nerd.

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