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10-18-2022 10:04 PM
I have had three cases where I've sold around 50 enclosure cards at a very low price. On my Royalty History it shows the total price the customer paid as $2.50 and the personalisation price as $17.50. Therefore, I've earnt a very low royalty as only 5% on personalisation. Is this correct as normally the cost of the item is greater than the cost of the personalisation? The normal cost for 50 is showing as $0.60 per card so each customer had managed to get this price down to $0.05 per card!? Thanks.
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10-19-2022 05:46 PM - edited 10-19-2022 05:53 PM
Your customer paid a total of $20.00 ($2.50 + $17.50).
What you are referring to as "the personalization price" is what is called a User Option. These are options a customer can select (or de-select) on the product page which increase (or decrease) the cost, such as zippers or outdoor fabric on a pillow for example. Adding an envelope or removing the designer attribution on cards are also considered User Options. When you select a User Option, the drop-down box shows you it will be + or - $x amount.
It does not matter what options you have set as your marketing default when publishing; User Options are always considered an "upcharge" and Zazzle policy is that they pay a royalty of 5% on those "upcharges". People tend to think this 5% for "upcharges" is a good thing, that it's in addition to the regular royalty calculated on the total sale. But it is not and when something is deeply discounted, it can even result in you earning less than if the customer selected the less expensive base option because discounts are never applied to User Options.
In your case of enclosure cards, the customer would have bought 50 cards with high-def printing selected, at 50% off. Bringing their total paid to $20.00.
One would think the designer then gets paid whatever their set royalty % is x $20.
But that's not how Zazzle calculates it.
Note the "upcharge" / User Option for high-def printing here is $0.35 per card.
$0.35 x 50 cards = $17.50
So you get $17.50 x 5% ($0.875)
But the customer paid a total of $20.00. So Zazzle calculates
$20.00 - $17.50 = $2.50
and then pays you whatever your set royalty % is on that remaining $2.50 (plus the $17.50 x 5%).
Also note that in this case with this sale, for 50 cards, the per-card price is $0.40. But if you subtract the $0.35 "upcharge" for high-def, you get the $0.05 per card you mentioned. But customers aren't actually paying only $0.05 per card. They're paying $0.40 per card ($20.00 / 50). It's just in the back-end where the"Zazzle math" works out to you earning your set royalty on what works out to be $0.05 per card ($2.50 / 50). As shown above, the other $0.35 per card ($17.50) pays you at only a 5% royalty.
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10-19-2022 02:07 AM - edited 10-19-2022 02:20 AM
I am suggesting that the customer transferred your design to a cheaper product, as the same thing has happened to me.
I thought I had sold three Christmas tree ornaments, according to Zazzle, the sales amounted to £67, but my royalties are £0.66p. There is no indication the customer has done this apart from the sales amount and royalty amount not adding up.
The setting to allow transfer design to another product is found in Advanced settings within your store, and by default is on.
I have disabled it. you will be told you could lose sales, but I am not interested in selling to only receive pennies for my work. I don't doubt people have made serious money on Zazzle, but I am sure they didn't achieve this by selling items for a few pence profit
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10-19-2022 06:13 AM
I'm curious, did your sales report NOT have a Transfer indicator in the royalty history list?
Go to Earnings ---> Royalty History
In that list I can see when something was transferred. It's indicated like the image below.
If these cases didn't indicate a transfer in the list, that would be something Zazzle should check on.
However, the transfer feature can work the other way too.
I've had people turn $9 Pedestal Signs onto a $45 foam core posters, and $3 keychain designs turned into invitations bought by the dozens, etc.
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10-19-2022 05:46 PM - edited 10-19-2022 05:53 PM
Your customer paid a total of $20.00 ($2.50 + $17.50).
What you are referring to as "the personalization price" is what is called a User Option. These are options a customer can select (or de-select) on the product page which increase (or decrease) the cost, such as zippers or outdoor fabric on a pillow for example. Adding an envelope or removing the designer attribution on cards are also considered User Options. When you select a User Option, the drop-down box shows you it will be + or - $x amount.
It does not matter what options you have set as your marketing default when publishing; User Options are always considered an "upcharge" and Zazzle policy is that they pay a royalty of 5% on those "upcharges". People tend to think this 5% for "upcharges" is a good thing, that it's in addition to the regular royalty calculated on the total sale. But it is not and when something is deeply discounted, it can even result in you earning less than if the customer selected the less expensive base option because discounts are never applied to User Options.
In your case of enclosure cards, the customer would have bought 50 cards with high-def printing selected, at 50% off. Bringing their total paid to $20.00.
One would think the designer then gets paid whatever their set royalty % is x $20.
But that's not how Zazzle calculates it.
Note the "upcharge" / User Option for high-def printing here is $0.35 per card.
$0.35 x 50 cards = $17.50
So you get $17.50 x 5% ($0.875)
But the customer paid a total of $20.00. So Zazzle calculates
$20.00 - $17.50 = $2.50
and then pays you whatever your set royalty % is on that remaining $2.50 (plus the $17.50 x 5%).
Also note that in this case with this sale, for 50 cards, the per-card price is $0.40. But if you subtract the $0.35 "upcharge" for high-def, you get the $0.05 per card you mentioned. But customers aren't actually paying only $0.05 per card. They're paying $0.40 per card ($20.00 / 50). It's just in the back-end where the"Zazzle math" works out to you earning your set royalty on what works out to be $0.05 per card ($2.50 / 50). As shown above, the other $0.35 per card ($17.50) pays you at only a 5% royalty.
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10-19-2022 09:11 PM
Thanks all. It's still disappointing!

