All language subtitles for 08-How-Royalties-Work

We're going to talk royalty calculations and specifically guys.

Just to let you know,

there is a,

there's a page.

Let me show you really quickly.

There's a page on Amazon merch.

If you log into your account,

there's like a resources tab up here near the top

next to where it says my account.

And underneath the resources.

There's a lot of really good info that everybody needs

to be acquainted with,

like,

you need to be familiar with this because Amazon doesn't

really play around.

If you break the rules,

they will be there pretty quick,

to kick you off the platform there quicker than Etsy

is to kick you off the platform at these pretty

quick.

So,

I'm going to dedicate the next few videos just to

showing you the ropes / Amazon merch policies that they

specify here in the resources section.

But if you don't like watching the videos and you

prefer to read on your own,

go ahead and do that.

Otherwise,

you know,

I like I know myself,

I like to watch videos rather than read.

So this is basically what I'm to be doing for

you.

So,

in this video,

we're talkin royalties,

and I'm going to read you the introductory.

Paragraph that I'm going to spend a little bit based

on my personal experience,

right?

Royalties.

You earn a royalty on every product sold your royalties

based on your products.

Purchase price,

less any applicable tax and less Amazon cost.

Amazon cost include materials production fulfillment customer service,

returns exchanges and resources required to detect and prevent fraud.

So I mean,

Amazon's doing all that for us,

all we really do need help putting designs in providing,

you know,

what title and some bullets.

So it is a pretty good deal for filming cost

including picking and packing your product,

when a customer orders it and shipping their products to

the customer,

including shipping for Amazon Prime and free shipping for eligible,

orders for the US,

the purchase.

Price includes taxes that are calculated and added at.

Check out the blow calculation.

Example,

does not include those for the EU,

the purchase price.

Displayed on the product detail page and in the below

calculation example,

is already inclusive of taxes,

right?

I'm going to walk you through.

This is going to be geared towards selling in the

US,

by the way,

because that is the primary market.

And,

you know,

a key role of selling,

anything eCommerce.

Or in real life is follow the customers,

at least.

I'm a strong believer in that.

So,

I really think you should focus your efforts on the

US market.

However,

just Make a note of this publishing to the US

is currently paused.

So you can't actually push a new product to the

US market.

So for those of you guys that our new sellers

watching this video trying to upload today,

to the US market not going to let you.

It'll only let you saved as a draft,

but whenever that resumes,

you can publish all the drafts until then though.

There's no harm done and uploading to,

you know,

code .co.uk

or .de

United Kingdom in Germany,

the Germans markets bigger,

by the way,

so maybe you,

lean towards that to get your first product up and

get your first sales.

All right,

so jumping into things,

the standard t-shirt.

This is the most commonly sold product through Amazon merch.

And this is the royalty examples that Amazon Bird shows

us when you go through there,

through the resources page,

and actually what I wanted to really quickly are,

you know,

what?

Now?

Let's go back here.

All right.

So,

the purchase price is that they recommend gear range from

1599 1799 1999,

2199 2399 in 2599.

It should be stated.

I don't know why they don't make this clear that

the current lowest price.

You can sell a t-shirt for standard t-shirt 43.

Amazon murch is $13.07.

All right,

that is the lowest that is the official base cost

of this product.

So if you sell it,

1307 and someone a customer is searching for a

T-shirt and they sort on Amazon by Price low to

high.

It's going to be all of the non Amazon.

Merch shirts that are in that Niche?

Did they searched for that are lower than 13?

07 and then it's going to be you and if

there's no you know what,

you call it a fbm,

if there's no fbm listings,

meaning like non Amazon merch.

Then,

you are eligible to rank at the top of the

search results for that Niche,

when customers search,

by Price low to high.

So,

it's just something that you should consider,

especially as a new cell.

You can defer profitability and price your shirts at 1307

where you won't get any money.

Paid out to you.

You will not collect the royalty,

but then you can focus on tearing up,

right?

That's a concept that's worth considering because obviously,

like me being into your twenty thousand and having 20,000

uploads.

Who's going to sell more shirts,

you know me or you with 10 words,

you want you want to really focus on tearing up

first,

but that's,

we'll talk more about that in another video.

I just wanted to make that clear,

like,

Amazon didn't go below 1599 on the royalty chart that

you can price lower than And then also I'll mention

this again at the end,

but you have the ability with some products like the

standard t-shirt to put designs on the back as well.

That will increase your bass cost and cut into your

royalties.

So that should be stated.

But,

for now,

at 1599 deal,

make a royalty of $2.21

that may not seem like a lot,

guys.

But at scale,

since this is completely scalable,

if you sell one t-shirt today,

it is the exact same from your end in my

end.

If we sell $1 today vs.

If we sell $1,000,

or $10,000

a week,

do the same amount of work,

right,

which is nothing because Amazon is doing all the work

for us.

So if you can sell at 1599,

make $2.21,

royalty purse sale,

and increase your sails by not having too high of

a price that should also be considered as a strategy.

And again,

we'll talk more in depth about the stuff was also

stuff.

I cover in depth in my course.

And then also just worth mentioning.

I'm not going to focus again on UK in the

EU,

but your base cost and you're royalty structures are going

to vary in the UK market and the German Market.

White long-sleeve shirts,

the lowest-cost that they give us a royalty chart for

is $20.99

for long sleeve shirts at a $2.37

royalty.

All the way through 2599.

We will generate a $5.96

royalty.

One thing I should have mentioned it at the wave

royalties work.

It's not like a flat-rate.

It's not just like,

okay,

1307 is the base cost and everything above that.

You just get paid out like a subtraction.

It's not like that.

They take a percentage.

So if you sell a shirt for $1,000

like they're going to get a percentage of the profits.

They're not.

Just going to give you a flat rate after the

13 07.

So that's why it if you're actually doing the math

and looking at each of these price points.

It's it's as real as I'm blocking two of the

prices,

but that's okay.

I don't think you should be charging.

Most likely 2599 or 2599 and standard

shirts in 2599 and long sleeve.

You typically going to stay in the lower end of

the range.

All right,

pullover hoodies,

if you sell it at 29 99,

you get a $3.50

Realty.

I think that's pretty much The Sweet Spot.

You can go.

You know,

when you upload products initially,

by the way,

you can start with a really low price to try

to entice customers to buy and then following the sale,

you can slowly and gradually increase the price.

That's another good strategy again.

We'll talk more about that later,

but worth considering 3199.

You can make a roti of $5.01.

One thing worth noting.

Hoodies.

It is that they used to cost more an Amazon

reduced the base cost.

Right?

And this is what I wanted to mention earlier before

I forgot,

but standard t-shirts used to cost less and then Amazon

increased the base cost.

So,

at 1999 wear today,

we get a $5.23

Realty paid to us.

We used to get $7.19,

paid to us.

So when I had like my most successful single day,

as emerge,

Cellar,

where I made,

when was it?

It was like $700 in a single day and I've

been like,

695 or think.

I got a screenshot of 695 but end up being

over seven hundred,

but I did all that in profit in one day

on March,

but I was also making $7.19

and then every year in January merge seems to revisit

the base costs and sometimes it'll increase them this year.

We got lucky.

They didn't increase the base cost on a The hoodies

are 2999.

Probably sweetspot $3.57

royalty persil.

Zip hoodie.

Again.

I think is a good sweet spot for selling the

zip hoodies at and you get a $2.26

Realty.

Again.

Think about this from the customer perspective and the pricing

psychology perspective,

understand two things,

two main things.

The lower,

your price is the more visibility you're going to get

from the smarter customers that search and that sort their

search results from low to high and number 2 pricing

psychology,

understand that if you pulled a thousand people and said

you want to buy a hoodie for 29 99 or

$30.

You've changed it by an insignificant amount by one penny.

But which one do you think will convert at a

higher rate?

Of course 2999 because the left digit,

the digits to the left of the decimal has decreased

and that's always your benefit.

All right sweatshirts.

I don't sell many of these.

I wouldn't recommend uploading to these unless you've got like

a really popular design,

but at 27 99 you'll make a royalty of $2.12.

Tank tops,

the sell like crazy over the summer and it is

currently June 5th.

So great time to be lifting tank tops.

If only we could list them.

Hopefully we get publishing resume soon,

but 1799 for a tank top.

You'll make a $2.07

Realty.

V-neck shirts,

I believe this is in women fit type only be

cool if they got men's v-neck eventually,

but currently still not a thing at 1799.

Jamaica Road C of $2.10.

Raglan shirts.

So at 2199 you'll make a royalty of $2.36.

One thing about these it's like a light grey or

white and Amazon murch.

I'm pretty sure States outright that darker colored t-shirts.

Like the T-shirt itself.

Is dark color,

which means your design is really optimized to contrast.

Well,

so it would be like a lighter color.

They tend to sell better and all these islands are

pretty much like light background shirts.

So you need like a dark optimize design.

So I don't sell a ton of Raglan.

You can still upload a design.

It's optimized for dark background on them,

but it doesn't look that great.

So,

my opinion,

you'd have to go a little bit.

Extra effort,

optimize your design to look good against a lighter background

and then upload it to all those colors across-the-board.

Alright,

popsocket grips at 1399,

you make a royalty of a dollar $0.56,

The Sweet Spot here for me.

Probably start low,

and then increased to around 1499.

I haven't made any sales for,

I don't think greater than 1499 in my Amazon murch

selling career.

As far as popsockets,

go by the way,

if you're new to merch,

popsockets are super easy to design.

For if you don't think you have design chops.

I've done a video on my YouTube Channel showing you

how easily you can design them by just pulling like

open-source photos and just dropping them and putting them on

a popsocket you.

Maybe I'll do another video about that.

It is part of the miniseries.

All right.

And again,

like I said,

I was going to come back to this,

but there are some additional costs.

This is rare diseases,

only if you choose to,

but you can sometimes do two-sided printing.

It's going to cost.

Like I'm sitting on the back side as well as

the front.

Typically.

You just print on the front but if you print

on the back as well,

you're going to have an increase in $4 of the

cost or $2.96

pound,

sterling,

or $3.33

Euro.

And if you use premium brand shirts,

which I didn't even mention,

because almost nobody sells premium shirts when you upload to

merch by default.

They don't even have got this pulled up right here,

by default.

When you are uploading to merch,

premium won't even be checked.

So it'll look like this basically everything but premium,

so I don't think they even like,

you selling premium and also you can't use the word

premium in your keywords.

So again,

be very careful,

careful there.