Understanding how the new account fee may apply to you
by Redbubble, April 19, 2023On May 1st, we are introducing new artist account tiers and an account fee for Redbubble Standard accounts. As we enter the next stage of Redbubble’s growth, this will enable us to invest in improving the experience for artists and their customers, and manage the costs associated with operating the marketplace.
For a more detailed overview of the changes please see our introduction to the new account tiers and fees. In this article we’ll take a closer look at the fee structure and outline how the changes may impact you.
From May 1st, all accounts will be classified as either Redbubble Standard, Redbubble Premium, or Redbubble Pro. Your account tier can be found on a new Account Tiers and Fees page which is linked from the Artist Dashboard. If your account is in the Standard tier, a new monthly account fee may apply. Premium and Pro accounts are exempt from the fee, as recognition for positive engagement and investment in the marketplace.
When developing the new fee structure, a guiding principle has been to ensure artists continue to earn a fair profit from selling their products through our marketplace. A detailed competitive analysis of other marketplaces was undertaken to inform our approach.
The account fee is a flat fee based on your monthly earnings and only applies if you make a sale. If you make no sales during the payment period you will not be charged a fee, so artists are never out of pocket. The monthly earnings period will begin with orders shipped from the 1st of May, 2023 and end on the last day of the month.
Here is an example of how it works for Redbubble Standard Accounts
Your artist earnings are calculated at the end of the pay period.Say you sold products worth a retail price of $300 in total, and made $75 (avg. 25% margin) during a payment period. Your account fee is based on the total earnings of $75 and is a flat rate of $28 (see the fee table below). This is deducted from your total earnings before your monthly payment is processed, so your payment amount is $47.
How are fees applied when I do not meet the payment threshold?
If your final payment amount is under the monthly threshold of $20, your payment rolls over. If your earnings roll over from one month to the next you will only be charged for the new earnings. Here is an example:Let’s say you earn $15.50 in May. Then you will be charged $6.15 as an account fee. Your earnings for May are ($15.50 – $6.15) = $9.35.
Let’s say you earn $87 through new sales in June. You will be charged $31 as an account fee. Your earnings for June are ($87 – $31) = $56.
You will be paid out $9.35 (May) + $56 (June) = $65.35 in the next pay run.
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