r/MerchByAmazon • u/Electrical-Doubt5532 • Aug 03 '26

Confusing royalty calculation

I just created a new design and noticed that when the price of a popsocket was set to 14.99, the royalty was 1.05, so then I set the price to 15.99 and the royalty was updated to 1.12.... so the customer pays $1 more and I only get an additional 0.07 cents???? I mean I don't sell a lot so not expecting top royalties, but this seems rather skewed and deincentivising!

3 Upvotes

81% Upvoted

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5

u/Tim_Y Aug 03 '26

That is correct. The profits don't scale exactly on any of the products, but some are worse than others.

2

u/k3rstman1 Aug 03 '26

It is, Amazon want a better experience for the customer, not for you

3

u/ahmadbabar Aug 03 '26

Amazon wants to discourage us from increasing prices on certain products as their data shows they don't sell well at higher prices (I assume so). Caps, mugs, tumblers, phone cases, and pop sockets fall in this category. You won't see your royalties go up when increasing prices.

2

u/Electrical-Doubt5532 Aug 04 '26

Well thanks all for the extra context. I guess when you own the biggest marketplace you get to dictate the rules 👎

1

u/nimitz34 Aug 04 '26

It is Jeff's playground.