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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.

13 comments Write a comment

    • 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.

  1. 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

  2. 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.

  3. 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.

  4. 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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