My Merch Pricing Strategy For 2018

The thaw has begun and we are now seeing daily uploads and tier ups on multiple accounts.

This is great news! Especially since we have January 15 approaching rather quickly.

What’s so important about Jan 15, 2018? It’s the day of the fee increase in regards to Merch by Amazon.

Here is the exact update from Amazon:

11/17/17: We have seen an increase in the costs to support Merch, including storage, fulfillment, transportation, raw materials, customer service, and the resources required to detect and prevent fraud. As a result, we will be adjusting the royalty on Merch by Amazon products. This change will take effect for sales of all new and existing products starting January 15th, 2018. If your product is priced below the new minimum price, it will be automatically updated to the minimum price.

Standard T-Shirt Examples

Currently

List price

$15.99

$17.99

$19.99

$21.99

$23.99

$25.99

Royalty

$3.79

$5.49

$7.19

$8.89

$10.59

$12.29

As of January 15, 2018

List price

$15.99

$17.99

$19.99

$21.99

$23.99

$25.99

Royalty

$2.36

$3.87

$5.38

$6.89

$8.40

$9.92

Long Sleeve T-Shirt Examples

Currently

List price

$22.99

$24.99

$26.99

$28.99

$30.99

$32.99

Royalty

$2.04

$3.74

$5.44

$7.14

$8.84

$10.54

As of January 15, 2018

List price

$22.99

$24.99

$26.99

$28.99

$30.99

$32.99

Royalty

$2.50

$3.75

$5.00

$6.25

$7.50

$8.75

Additional costs will be incurred for 2-sided printing as well as using a premium brand t-shirt

2-sided printing

+$4.00

Using premium brand t-shirts

+$1.50

It’s a pretty big shift and it’s something that you need to start preparing for now.

Since the thaw began, I have been uploading my max every day and I have also been spending a ton of time updating the prices of my older designs (and optimizing them if some fell through the cracks).

Here is my new pricing strategy for 2018:

All of my old designs on a standard t-shirt that have sold at least one copy: $17.99 (up from $15.99)

All of my old designs on a standard t-shirt that have not yet sold (with at least 18 days left before removal): $14.99 (up from $12.99)

All new designs on standards shirts: $15.99 (up from $12.99)
All new designs once a sale is made: $17.99 (up from $15.99)

All premium t-shirts: $19.99

All long sleeve t-shirts: $24.99

With hundreds of designs to update, it takes some serious time to make these a reality.

I did some testing with my account and I actually saw an increase in profit with very little impact on the number of sales with this new pricing model (which is great news).

I hope this shines some light on my plan as we start 2018!

CW (Chris Wilkey)

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