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hey guys Ryan here welcome back to part
three of my Amazon Murch mini series in
this video we are gonna cover the
royalty calculation for each product
type that you can currently sell through
Amazon merge this is important thing to
understand especially if you're new and
this mini series is really geared toward
those of you that are new to the
platform and I know a bunch of you guys
were just recently accepted I've been
seeing a lot of posts in my Facebook
group and I've been seeing people
reaching out to me via email thanks for
that drop a comment by the way if you
didn't let me know that you were
recently accepted let me know in the
comments of this video but this is
important stuff that we are going to
have to cover as we get better at Amazon
merch as we learn the ropes and begin to
sell more and more shirts alright first
thing before we start I'm Ryan Hogue
I've sold over 1.6 million dollars on
Amazon and if you want to follow the
links in the description I've got a free
seven-day mini course that I deliver via
email if you'd like to sign up for that
I've got a Facebook community dedicated
to helping each other through Amazon
merch learning the ropes you can check
that out too linked in the description I
published income reports each month on
the first or second day of the month if
you want to follow my progress as an
Amazon merch seller currently into your
twenty thousand and I wrote a
50-something lecture full-blown Amazon
merch course if you really want to know
exactly how I approached it and it's not
like a one-size-fits-all thing it's
really based on your tier what tier your
inter name is on merch dictates a lot so
if you want to know my exact strategy to
hit the fast-forward button and really
start making the big bucks as quickly as
possible there's a link in the
description there as well alright back
to the reason we're here we're gonna
talk Realty 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
you know they're pretty quick to kick
you off the platform they're quicker
than Etsy is to kick you off the
platform
he's pretty quick so I'm gonna dedicate
the next few videos just to showing you
the ropes per Amazon merge 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 gonna be doing for
you so in this video we're talking
royalties and I'm just gonna read you
the introductory paragraph then I'm
gonna expand a little bit based on my
personal experience
alright royalties you earn a royalty on
every product sold your royalties based
on your products 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 so I mean
Amazon's doing all that for us all were
really doing is uploading designs and
providing you know a title and some
bullets so it is a pretty good deal
fulfillment costs including 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 for
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 the EU the purchase price
displayed on the product detail page and
in the below calculation example is
already inclusive of taxes all right I'm
gonna walk you through this is gonna be
geared towards selling in the US by the
way because that is the primary market
and you know a key rule 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 making 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 are new
sellers watching this video trying to
upload today to the US market it's not
gonna let you it'll only let you save as
a draft but whenever that resumes you
can publish all the drafts until then
though there's no harm done in uploading
to you know code code at UK or dot de
you know United Kingdom in Germany the
German market is bigger by the way so
maybe you lean towards that to get your
first products up and get your first
sales alright 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 merch shows us when you go
through there through the resources page
and actually what I wanted to really
quickly are you know what though let's
go back here
alright so the purchase prices that they
recommend here range from $15.99 $17.99
$19.99 $21.99 $23.99 and $25.99 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 for three Amazon merch
is thirteen dollars and seven cents
alright that is the lowest that is the
official base cost of this product so if
you sell at 1307 and someone a customer
is searching for a t-shirt and they sort
on Amazon by price low to high it's
gonna be all of the non Amazon merch
shirts that are in that niche that they
searched for that are lower than 1307
and then it's gonna be you and if
there's no you know we would call that
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 load too high
so that's just something that you should
consider especially as a new seller 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 a royalty but then you can focus
on tearing up alright that's a concept
that's worth considering because
obviously like me being into your twenty
thousand and having twenty thousand
upload slots who's gonna sell more
shirts you know me or you with ten
upload slots so this 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 $15.99
on the royalty chart but you can price
lower than this alright
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 base cost and cut
to your royalties so that should be
stated but for now at $15.99 you'll make
a royalty of $2 and 21 cents that may
not seem like a lot guys but at scale
since this is completely scalable if you
sell one t-shirt in a day it is the
exact same from your end in my end if we
sell one share today versus if we sell a
thousand today or 10,000 today we do the
same amount of work right which is
nothing because Amazon's doing all the
work for us
so if you can sell at $15.99 make $2 21
centruy 'el tea per sale and increase
your sales 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 this stuff but it's also
stuff I cover in depth in my course and
then also just worth mentioning I'm not
gonna focus again on UK and de but your
base cost and your royal tea structures
are going to vary in the UK market and
the German market alright long-sleeve
shirts the lowest cost that they give us
a royalty chart for is 20 dollars 99
cents for long sleeve shirts at a $2 37
cent royalty all the way through $25.99
where you'll generate a five-dollar 96
cent royalty one thing I should have
mentioned is that the waive 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 $1000 like they're
gonna get a percentage of the profits
they're not just gonna give you a flat
rate after the 1307 so that's why it if
you're actually doing the math and
looking at each of these price points
it's it's I just realized I'm blocking
two of the prices but that's okay I
don't think you should be charging most
likely $25.99 or yet $25.99 in standard
shirts and $25.99 on long sleeve you're
typically gonna stay in the lower end of
the range all right pullover hoodies if
you sell it at $29.99 you get a three
dollar 50-cent royalty I think that's
pretty much the sweet spot you can go
you know when you 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 a sale you can slowly and
gradually increase the price alright
that's another good strategy again we'll
talk more
about that later but worth considering
at $31.99 you can make a royalty of five
dollars and one cent one thing worth
noting about hoodies is that they used
to cost more and Amazon reduced the base
cost alright 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 $19.99 where today we get a five
dollar twenty three cent royalty paid to
us we used to get seven dollars and 19
cents paid to us so when I had like my
most successful single day as a merged
seller where I made what was it it was
like seven hundred dollars in a single
day it might have been like 695 or I
think I got a screenshot of 695 but it
ended up being over 700 but I did all
that in profit in one day on merch but I
was also making seven dollars 19 cents
and then every year in January merch
seems to revisit the base costs and
sometimes they'll increase them this
year we got lucky they didn't increase
the base cost on us so hoodies $29.99
probably the sweet spot three dollar
fifty seven cent royalty per sale zip
hoodie again I think $29.99 is a good
sweet spot for selling the zip hoodies
at and you get a $2.00 $0.26 royalty
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 gonna get from
the smarter customers that search and or
that sort their search results from low
to high and number two pricing
psychology understand that if you polled
a thousand people and said do you want
to buy a hoodie for $29.99 or $30 you've
changed it by an insignificant amount
you've changed it by one penny but which
one do you think will convert at a
higher rate of course $29.99 because the
left digit the digit to the left of the
decimal has decreased and that's always
to 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
two dollars and 12 cents
tank tops these sell like crazy over the
summer and it is currently
fifth so great time to be listening tank
tops if only we could list them
hopefully we get publishing resumed soon
but $17.99 for a tank top
you'll make a $2 7 cent royalty v-neck
shirts I believe this is in women fit
type only be cool if they got in men's
v-necks eventually but currently still
not a thing at $17.99 you'll make a
royalty of 2 dollars and 10 cents Raglan
shirts so at 20 $1.99 you'll make a
royalty of 2 dollars and 36 cents one
thing about these is it's like a light
gray or white and Amazon merch I'm
pretty sure states out right 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 of these Raglan's
are pretty much like light background
shirts so you need like a dark optimized
design so I don't sell a ton of Raglan
you can still upload a design that's
optimized for dark background on them
but it doesn't look that great so in my
opinion you do 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 all right pops Aki
grips at $13.99 you make a royalty of a
dollar 56 cents the sweet spot here for
me probably start low and then increase
to around $14.99 I haven't made any
sales for I don't think I'm greater than
$14.99 in my Amazon merch selling career
as far as pop sockets go by the way if
you're new to merch pop sockets 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
cropping them and putting them on a pop
socket but maybe I'll do another video
about that as part of the mini series
all right and again like I said I was
gonna come back to this but there are
some additional costs this is rare this
is only if you choose to but you can
sometimes do two-sided printing it's
gonna caught that means printing 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 gonna
have an increase in $4 of the cost or $2
96
pound sterling or $3 $0.33
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 say I've 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 next week
we'll talk more about the content
strategy so in part four we're gonna go
back to the resources page go through
the content policies might be a little
boring but it is extremely valuable
information because if you lose your
account you make zero dollars if you
keep your account sky's the limit
so that's what we're gonna talk about
next time guys thank you for watching
till the end if you found the video
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you
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