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Simply Sell More with the New Marketplace Commission Model

Simply Sell More with the New Marketplace Commission Model

Starting March 2nd, Spreadshirt is introducing a new and simplified pricing model for the Marketplace. You will earn a fixed, fair commission for every sale and be able to sell more designs. Learn what’s new and what to do next.

Under the new commission model, there will be standardized design prices as well as a fixed design price for each product type. For example, in the U.S. you will receive a fixed commission of $7.50 for every premium hoodie sold. For a standard T-shirt, you’ll make $3.00 per shirt. We’ve conducted a detailed market analysis to calculate the optimal design price for every product type in our assortment.

What’s new?

Starting March 2nd, 2020:

  • In the Marketplace, there will be a fixed design price for every product type in every country. You can find the design prices for all Marketplace products in this overview.
  • In the Customize Tool, where your Marketplace designs are also available, you will receive a flat rate of $3.00 per design sold, regardless which product the customer selects. You can find an overview of the Customize Tool design prices for each country here.

This new model makes Spreadshirt’s retail prices more transparent and competitive. In the future, it will be easier for customers to find products that fit their budget. The standard T-shirt will always be cheaper than the premium T-shirt. The Marketplace will be more user-friendly and customers will spend less time searching for the right product for your designs. A clearer price structure will strengthen customer loyalty and satisfaction in the Marketplace. In the long run, happier customers become returning customers— and more customers help you make more sales.

What’s in it for you

The new commission model is designed to help you make more sales. You can focus on uploading your creative masterpieces and let us handle the rest. With no extra work required, the new commission model will help you:

  • Take on the competition with optimized prices for over 150 product types in 3 countries
  • Reap the benefits of Spreadshirt’s extensive online marketing strategies that bring customers right to your designs.
  • Attract new buyers thanks to the many exciting new products coming to Spreadshirt’s assortment

New products, new customers

Thanks to the new commission model, Spreadshirt will be able to start introducing exciting new products to our assortment. Under the old commission model, designers were only able to set one price for their design. This caused low-cost products such as buttons or mugs to be disproportionately expensive, which in turn led to low sales and unhappy customers.

For example, let’s say you make an awesome panda design. So awesome that you set the design price at $9. A single sticker featuring your design would have cost over $10 plus shipping under the old model. The result? Your customer looked for their panda stickers elsewhere— and you lost a sale.

With fixed design prices, we will be able to introduce new and inexpensive products. You’ll have the opportunity to reach a whole new customer base: the deal-hunting crowd that was scared off by your overpriced panda stickers. And maybe they’ll even buy an affordable panda T-shirt from your Showroom to match those stickers.

To make sure we’re roping in those new customers and showing off our new prices, Spreadshirt will launch an aggressive marketing campaign on Google and other major online channels. Increased marketing will increase the traffic on our platforms, which in turn will increase your sales opportunities. Design prices and retail prices will vary in response to the purchasing power of each country (see an overview here)

What about promos?

Spreadshirt regularly runs promotions to attract customers to the Marketplace with tantalizing deals. Promotions appear on search engine ads, social media, or via Spreadshirt email newsletters. We have a dedicated team at our headquarters to plan and market the promos that hook your customers.

Come March, you can expect a few changes regarding promos.

  • Spreadshirt will pay the Free Shipping promo out of our pocket— your earnings remain the same.
  • Other discount codes will impact your earnings as well as Spreadshirt’s.
    • Example 1: your customer has a 15% off coupon. Your design price earnings will be reduced by 15%, and Spreadshirt will also waive 15% of its revenue.
    • Example 2: In the case of a fixed customer discount, your share depends on the value of the shopping basket. Let’s say your customer has a $5 voucher: With a basket value of $50, your commission is reduced by 10 percent (5/50 =10%). With a basket value of $100, your earnings are only reduced by 5 percent (5/100 = 5%).

What changes should I expect on external marketplaces

On Spreadshirt, your designs have two sales channels: the Marketplace and the Customize Tool. External marketplaces such as Amazon or eBay are additional channels where your designs may be featured.

We select, publish, optimize and market your designs on the external marketplaces for you. Because of additional marketing costs and resulting fees, the design prices on external e-commerce marketplaces are 15% lower than on the Spreadshirt Marketplace. Find out more detailed information about your design prices on Amazon or eBay here.

What happens next?

The new commission model also changes our Terms and Conditions. We have already sent you the new T&Cs via email. You don’t have to do anything special to accept these changes. Your account will automatically transition to the new commission model on March 2nd, 2020 without any further action on your part.

Do you have any questions about the new commission model? Find quick answers in our FAQ, Blog or forum.

If you choose to refuse the Terms and Conditions, please notify us via email at: opposition@spreadshirt.com. Please note that your Spreadshirt account will be closed upon refusal of the Terms and Conditions. Any remaining credit in your account will be paid out to the Paypal or bank account connected to your Spreadshirt account in the month following your account closure.

If you have further questions, please contact our friendly service team directly. We will be happy to help.

26 comments Write a comment

  1. Wow this hurts. Spreadshirt has become like 99% of the other sites with a fixed price so that Spreadshirt can control making more than the designer every time. No more setting a $20 design price for socks and making more than Spreadshirt + no more free shipping days. hahaha

  2. Years ago I abandoned CP because they decided to pay artists some small change for designs. I focused on Spreadshirt. Now, Spreadshirt has decided to go the way of CP. I will tell you what will happen from the point of view of the artist:

    1. As an artist, you put time and effort into designs.
    2. If you sell your designs across platforms, you do not want cannibalization
    3. If one site pays a small fixed commission, you delete your nice/popular designs, and keep them selling on the platform that allows you to set your own commission. After all, why spend hours creating a design, if you’re going to earn a couple of dollars per sale? If you create nice items, you don’t need volume sales.
    4. Commoditization of prices means you will see commoditization of designs (mass-produced, simple)

    I deleted a number of my popular designs, ones that sells for a nice markup on other platforms. I do not want cannibalization. If Spreadshirt is going to treat artists like employees or contractors as opposed to independent creators, Spreadshirt will see the above happening.

  3. So now as opposed to receiving $10-12 per sale, we are getting $3-5. Anyone with the slightest business sense can see this is more beneficial to Spreadshop/Spreadshirt vs the shop owner. People were very receptive to one of my most recent designs and I sold
    quite a few. I was pretty excited about the sales until I saw how much I was getting for each. Did not notice the change in model until it was too late. Disappointing.

  4. Hello – I have a great idea for wording on a T-Shirt, but I have no design, etc. in mind. How do I go about partnering up with you or someone to get this idea produced and marketed?
    Thanks,
    Andy Howard

  5. Was pretty excited about this change. Leveling the playing field is great. Then I see that spreadshirt is still undercutting us with their free designs, which was the move that drastically cut most of our commission payments in the first place. I was hoping all the designs would be shown together without the design price showing. I can’t think of another POD that does this. I’d rather spreadshirt just show our designs, let people pick the ones they like without us competing against your free designs, and give us a commission based on the end sale like every other site.

    • Hi,
      thank you for your feedback and comment your concerns. What you described is only the case for the Customize-Tool. For the Marketplace there are no free designs you compete with. There were several reasons why we decided as a company to go with this kind of commission model. Read all about the advantages in our blog article.

  6. I am not very happy about this decision as well…

    You guys are essentially deciding for us wat we should get payed for our own product.

    I hope you guys are right with the promise of more sales because, since i am primarily a marketplace seller, i have a tough time imagining my monthly revenue staying the same.

  7. RIP SPREADSHIRT. Now it’s CafePress 2.0 where you used to make reasonable commission but now you are left with pennies and everybody is moving to other platforms… Spreadshirt had a chance to be a leader but ruined it due to greed.

    and they pretend the new commission model is a good news LOL … adding insult to injury

    • Bonjour Havet,
      Attendez l’entrée en vigueur du nouveau système. Vous ressentirez peut-être la différence.
      Et si vous avez votre propre marque, le Spreadshop répond certainement mieux à vos besoins.

  8. My credit for last month(Jan) and this month(Feb.) are still not payout. I can’t get what’s happen? This situation happened for several time. Please payout my credit as soon as possible. Thank you very much.
    UID 997174

  9. You stated we can turn off promotions if we wish not to participate because the discount given to the customer will be shared between the designer and Spreadshirt. I could not find a place to do this deactivation on my Dashboard regarding promotions/discounts.

    After a bit of searching on your site I found this:

    Can I deactivate the promotions for my designs or my Showroom?

    No. The promotions cannot be deactivated for the Marketplace or the Customize Tool. This means that when a discount code is activated for a product featuring your design, your commission from the design price is reduced by the same percentage as the promotion. Spreadshirt’s revenue is also reduced by the same percentage.

    This is very important in my decision to remain, remove most of my designs or just go with my Spreadshirt shop instead of Marketplace. Can I please have some clarification?

    • Hi Millicent,
      for your shop you are in full controll. However for the Marketplace you can not deactivate the promotions. I would suggest to wait until we rolled out the models and than make a decision upon how both models run for you. Just give it some time.

  10. I am curious, currently if I send traffic to my spreadshop, I get paid a referral fee plus whatever commission fee I choose to add. Is this no longer the case? I ask because I am in the process of opening a zero commission shop for a non-profit and was going to use the referral fee as my compensation.

    Also is there a way to bulk adjust pricing based off a commission % such as 20% or 25% rather than setting each product price. It is a MAJOR pain.

    • Hi Alex,

      This is actually not giving me more control and is actually going to cost me money. For instance, in the old model, if I have a Regular Men’s Tee, listed at $15.49, which is the cost without any additional commission, I would get a 20% referral fee. Which is approx 3.09.

      Under the new model, if I was to list that same tee at $15.49 minus the base price, my “margin” is $1.50. So you have effectively reduced my royalty under the old model in half.

      I guess this will be a motivator to get my business license set with the state and move to a production partner and move off this platform. A shame.

  11. This is horrible. Since Spreadshirt poaches all the sales from your Spreadshirt already now they are only gonna pay 3 dollar flat rate instead of 5.50. You are stealing our sales and designs and not paying a proper amount. I will be taking down my designs and finding a new printer for my shirts and designs. You are greedy, first, you steal sales by directing my customers to your site instead of my Spreadshop. Now you are cutting my commission by 45 percent. Disgusting

    • This is also difficult to swallow for me.

      I’m not as talented as most I sell my designs cheaper than 3$. By having every design at the same price I also fear my income might suffer. Not because I will earn less by design (I would earn a little more) but because I fear the competition from better designs will be stronger. Free design pricing should be allowed to correspond to the effort (or in my case talent) of the designer. My competitive advantage was to be cheaper !

      I strongly feel anxious and helpless every time Spreadshirt makes such changes as I fear for my Spreadshirt revenue… which plays a significant share in my household revenue.

    • Hi Ron,
      please check our design price overview. It is not a $3 flat rate. For our Marketplace we set a range of design prices per product. For example for every sold Men’s Premium T-Shirt in the US you will get $4 and for a Men’s Premium Hoodie $7,50. These are just examples from our list. I really recommend to have a look at this list. I also would like to ask you what your issue about redirecting customers is. Can you please expalain this to me? We do activly advertise our marketplace to get the traffic and conversion we need to sell products. For any further questions please do not hesitate and contact us. Thank you.

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