Merch By Amazon reducing royalties for sellers. Late last year Amazon sent the following announcement.
Since launching Merch on Demand, we have made investments in the program to help you grow your business and reach more customers. From new product types and new locales to multi-product creation and automatic product upload, our focus has been on improving the program for both content creators and customers. This includes keeping our royalty rates flat since 2019, despite rising costs.
However, as costs to support Merch on Demand – including material, production, shipping, and fulfillment – have continued to increase, we are adjusting royalties effective January 3, 2023.
To find out more, please visit our royalty calculation page. We will continue working every day to ensure Merch on Demand remains a great value, and we look forward to our continued partnership.
Royalties
You earn a royalty on every product sold. Your royalty is based on your product’s purchase price less any applicable tax, and less Amazon’s costs. Amazon costs include materials, production, fulfillment, customer service, returns, exchanges, and resources required to detect and prevent fraud. Fulfillment costs include picking and packing your product when a customer orders it and shipping your product to the customer—including shipping for Amazon Prime and Free Shipping eligible orders. For the US, the purchase price includes taxes that are calculated and added at checkout (the below calculation example does not include those). For Europe and Japan marketplaces, the purchase price displayed on the product detail page (and in the below calculation example) is already inclusive of taxes.
Standard T-Shirt Examples – US
Purchase price $15.99 $17.99 $19.99 $21.99 $23.99 $25.99
Royalty $1.93 $3.41 $4.89 $6.37 $7.85 $9.32This new change brings the Standard T-Shirt Royalty under $5 for the first time. Royalty changes affect all of the various products. You may want to review your low price listed items to ensure you aren’t limiting yourself to just a few cents.
While this isn’t great news it still does not change the fact the Merch By Amazon is still a solid platform as there is no cost to you for listing products. I still plan to keep uploading designs to try and increase my monthly royalties.
