Amazon.com · Standard t-shirtHow Merch by Amazon royalties are calculated
Amazon pays a royalty on each product it sells for you. In Amazon's words, the royalty is your product's price less any tax and less Amazon's costs (making, shipping, returns and customer service), with a multiplier for your royalty group. In practice, each product has two numbers per marketplace: a minimum list price, where your royalty is zero, and a royalty rate, the share you keep of every dollar above that minimum. PopSockets grips and phone cases (outside Japan) work differently: they pay a flat share of the whole price.
The calculator holds those two numbers for every product in seven marketplaces. Pick Target royalty to get the list price for the royalty you want, or List price to see your royalty at a price. The table under the calculator shows every product of the marketplace at once.
What changed: royalty groups on Amazon.com
Sales on Amazon.com now pay one of three royalty groups. Creator is the standard rate. Plus pays 2 times the Creator rate to sellers who bring at least 15% of their unit sales from their own traffic (ads on or off Amazon, or social media). Premium pays 2.16 times the Creator rate from 35%. Both need at least 10 sales a month in the US store, and Amazon updates your group each month from your last two months. Sales in other marketplaces keep their earlier rates. Choose your group in the calculator when you price for Amazon.com.
Worked example: a standard t-shirt at $19.99
| Marketplace and group | List price | Royalty per sale |
|---|---|---|
| Amazon.com, Creator | $19.99 | $2.44 |
| Amazon.com, Plus | $19.99 | $4.88 |
| Amazon.com, Premium | $19.99 | $5.27 |
| Amazon.co.uk | £15.99 | £2.59 |
| Amazon.de | €16.99 | €2.07 |
For the Creator group, the math is 37% × ($19.99 − $13.40) = $2.44. To earn $5.00 per shirt instead, list it at $13.40 + $5.00 ÷ 0.37 = $26.91. These figures come from Amazon's Merch on Demand royalties page, checked on November 14, 2026. The calculator matches every example on that page to within 3 cents.
Notes by marketplace
- Amazon.com: prices exclude sales tax, which Amazon adds at checkout. Your royalty group changes the rate.
- UK, Germany, France, Italy, Spain: list prices include VAT, so the same price pays less than in the US. Children's clothing has no VAT in the UK, so kids' sizes there pay a higher royalty at the same price.
- Japan: prices are in yen and include consumption tax. Fewer products are sold there.
Pricing mistakes to avoid
- Pricing with old rates. If you priced US shirts before the royalty groups, check what you earn in the Creator group now.
- Listing at the minimum. At the minimum list price you sell for a royalty of zero.
- Copying prices between marketplaces. Each one has its own minimum and rate.
To reach the Plus group you need traffic of your own. Our guide on how to advertise Merch by Amazon covers the options. Before you set a price, the Podly Merch Database shows what similar best-sellers charge, and the Etsy fee calculator does the same math for Etsy.
Facts checked and page updated on .
