Why is Spreadshirt changing its commission model?
The market for print-on-demand products has exploded in recent years. There are more designers, more retailers and more competition. We’ve taken a close look at how we can better serve both you and our customers in today’s competitive environment.
The results are:
- a simplified and fair commission model for you as a designer
- attractive and transparent prices for our Marketplace customers
To build long-term customer trust and loyalty, our platform must become more transparent and competitive. Under the new model, our customers will be able to rely on getting their money’s worth: a higher retail price will reflect a higher-quality product. For example, the standard T-shirt will always be cheaper than the premium T-shirt. The Marketplace will be more user-friendly and it will be easier for customers to find the product they’re looking for. This will help build customer satisfaction and loyalty. In the long run, the new commission model will lead to happier customers, and happy customers mean more sales.
In addition, we will be able to expand our product range. The fixed design price will allow us to include lower-priced products such as stickers. A broader product range is sure to attract a broader range of customers and offer them more variety.
Why can’t I set the design price myself?
The Marketplace and the Customize Tool need to attract more customers. This requires a price structure that is as simple as possible for our customers. A fixed design price makes our prices clearer, more consistent and more transparent. At the same time, it saves you time and effort. No need to worry about your prices, calculations or marketing— we handle all of it. If you just want to get creative and sell your designs on a straightforward and easy-to-use platform, you’ve come to the right place.
Why don’t I get a percentage of the sales price?
We want to value your work as a designer. To stay competitive, we also need to expand our product range to include lower-priced items such as stickers. With a percentage-based model, your commission rate would decrease dramatically the cheaper the product is. With high-quality, expensive products, the sales price would be too high and therefore unattractive for your customers. Because of this, we find a fixed design price per product to be the fairest solution.
What is the base price per product?
The prices for our Marketplace products are subject to fluctuation based on raw material prices, purchase prices from our suppliers and seasonal demand. We reserve the right to adjust our base prices according to these fluctuations. Therefore, we cannot make any binding statements about our base prices and do not publish them.
Will my income decrease?
According to our calculations, commissions for 90% of Marketplace designers will not change. The new design prices are based on the design price average before the introduction of the new commission model. We anticipate that the majority of designers will earn approximately the same amount.
Why are there different commission models for the Marketplace, the Customize Tool and the external marketplaces?
Each sales channel is aimed at different customer groups, each with its own market and cost structures. In order to be able to offer competitive prices and fair commissions on each sales channel, we have developed a separate commission model for each sales channel.
From March 2nd, 2020, the following applies:
- On the Marketplace, there is a fixed design price for each product type in each country. The design prices for all Marketplace products can be found in this overview.
- In the Customize Tool, where your Marketplace designs are also available, you will receive a flat rate of $3 per design sold, regardless of the product your design is placed on. The commission in the Customize Tool can vary from country to country.
- Spreadshirt selects, markets, publishes, optimizes and markets your designs on external marketplaces such as Amazon and eBay. The design prices for the external marketplaces are lower than on the Spreadshirt Marketplace because of additional marketing costs and fees on these platforms. See the design prices for external marketplaces in detail here.
How much have I earned with my designs on the various sales channels?
You can find all the information you need about your sales and credits in your Partner Area. Find out how much you’ve earned on your individual sales channels in your sales statistics. Check the status of your sales and filter your bestsellers by sales channel, designs, products and supplier countries. For more information on how to make money with Spreadshirt, visit our help pages.
What is the design price for my Marketplace products?
You can see the prices in detail in this overview.
Why do similar Marketplace products have different design prices?
Your designs and products should appeal to as many target groups as possible – from bargain hunters to impulse buyers to customers with expensive taste. With different design prices for each product, each design can appeal to many target groups.
In addition, we will now be able to offer lower retail prices for our standard products. Spreadshirt will market these lower prices on major channels to increase traffic on all Marketplace domains. Increased traffic will increase your chances of making sales. Design prices, as well as retail prices can vary according to the purchasing power of each country (see overview).
How much can I earn per sale?
Your commission per design sold depends on the design price set for the country domain it was sold in. Further information can be found in our help center.
Why does my actual income payout amount differ from the information in my statistics overview? (Withholding tax)
Your actual income payout may differ from your statistics due to withholding tax. Please see our help article on commission taxation.
Why is the same design sometimes compensated differently?
The design price can vary in two ways:
- In the Marketplace, design prices vary from product to product. This means that the same design receives a different design price on a cup than on a hoodie.
- Design prices vary from country to country. For example, the design price commission in the the United States is different from that in Australia or Canada.
In your sales statistics, you can see exactly on which product and in which country your design was ordered and how high the commission is there. This also applies to designs that you sell in the Customize Tool.
Why is the commission different for two identical products with the same price?
There can be two reasons for this:
- Your design was sold on two identical products on two different Marketplaces (e.g. Canada and the US). The design price varies from country to country.
- A discount code could have been activated for one product and not for the other.
Who pays for the promotions?
The “free shipping” discount is always paid by Spreadshirt and does not influence your earnings. For all other promotions, we share the costs. If a customer redeems a discount code, this discount will be deducted from your design price and from Spreadshirt’s revenue.
For example: With a 15% promo, your earnings from the design price are reduced by 15%. Spreadshirt also waives 15% of its income. In case of a fixed discount amount, your commission reduction is a percentage of the total shopping cart value. For example, let’s say your customer has a $5 discount voucher: With a cart value of $50, your commission is reduced by 10% ($5/$50 = 10%). With a cart value of $100, your earnings are only reduced by 5% ($5/$100 = 5%). Spreadshirt’s earnings are reduced by the same percentage.
Do promotions affect my earnings?
Yes. If a promotional code is redeemed for your designs, the costs of the promo are shared by you and Spreadshirt. For example, when your customer applies a 15% off promo, your design price earnings are reduced by 15%. Spreadshirt’s revenue is also reduced by 15%.
We run regular promo campaigns to attract more customers to the Marketplace and increase your sales volumes.
Are there also free promotions?
Yes, the costs for the “free shipping” promo are completely covered by Spreadshirt. These promos don’t affect your earnings.
Where can I find out how high the promotional costs for my sales are?
You can see whether a promo has been activated for each sale and how your commission is affected in your sales statistics and in your monthly earnings statement.
How do I find out about upcoming promotions?
Promotions are an integral part of our marketing strategy and are automatically offered to different target groups. Find out which promotions were applied and when from the sales statistics in your Partner Area and from your monthly earnings statement.
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.
Will the new commission model influence my designs’ ranking?
No. The commission model is not related to the ranking on the Marketplace. However, it is quite possible that you will make more sales under the new commission model and thus improve your ranking.
How do I accept the new Terms & Conditions?
You will receive the new Terms & Conditions by e-mail. You do not need to take any additional action.
How can I object to the new Terms & Conditions?
You will receive the new general Terms & Conditions by e-mail and can object to them by sending an e-mail to opposition@spreadshirt.com. If you require assistance, we will be happy to help.
If you do not agree with the terms of the new commission model for the Marketplace but would like to continue operating your Shops, please deactivate the Marketplace sales channel for your designs.