Starting September 1st, we will be introducing a new fee for Redbubble Standard and Redbubble Premium accounts called the Excess Markup Fee, in addition to an updated platform fee. Over the past year, we’ve seen a challenging economic landscape, changes to consumer demand, and rising operational costs in supporting higher-margin products on Redbubble.

If you have a Redbubble Standard or Redbubble Premium account, an excess markup fee will only apply to product markup above 20%, and only on the earnings from that additional portion at point of sale. You will keep 50% of what you earn beyond the 20% markup.

Here’s an example of how that works.

Let’s say T-shirts have a base price of $20 in the US, and you set a markup of 30%. This would mean your margin not including the fee would be $6. Since the new excess markup fee only applies to product sales with a markup above 20%, the difference of 10% will now be subject to the 50% excess markup fee.

Your Excess Markup : 30%-20% = 10%

Margin subject to a fee : 10% x $20 = $2

Excess Markup Fee : 50% x $2 = $1

Your remaining margin after fees : $6 – $1 = $5

If you are in the Standard or Premium tier, no fees are applied to product markups at or below 20%. To manage your product markups, visit the Product Pricing page on the Artist Dashboard.

How is this different from the platform fee?

The platform fee is a percentage of monthly earnings applicable to accounts in the Standard or Premium tiers. The platform fee is calculated at the end of the pay period, whereas the excess markup fee is calculated at the point of sale. If your product markups are set to 20% or below, you will only be subject to the monthly platform fee.

Your cumulative artist earnings are calculated at the end of the pay period and any applicable fees are automatically deducted before your monthly payment is processed. Account fees are charged in the currency you selected to be paid in.

In any given month, a strict fee cap is enforced and you will NOT be subject to more than $150 in account fees. Account fees that exceed $150 will be credited back to your earnings within the same pay period. For more information on how your payments are calculated, see our Help Center article here.

If you have a Redbubble Pro account, you are exempt from the platform fee and excess markup fee.

Why this fee exists

This new fee reflects changes to the economic landscape and consumer demand, and rising operational costs in supporting higher-margin products on Redbubble, with the goal of increasing sales and overall earnings to artists on Redbubble.

Redbubble takes a flat service fee on each transaction to cover the operational costs to facilitate sales on the marketplace. When fewer transactions occur, often as a result of higher margins, there are fewer service fees collected, however the underlying operational costs remain.

The Excess Markup Fee is designed to encourage artists to keep their products competitive and help support a healthy marketplace ecosystem for both artists and their customers.

Featured Image : Cosmic Cotton Candy – Pink Stardust | Designed and sold by VertigoA