Redbubble takes a base price for each product, and the artist sets their markup on top of that. Redbubble then takes a commission from the total sale price, which ranges from 5% to 30% depending on the product type and volume sold.
Additionally, the base price for each product varies depending on factors such as the type of product and the manufacturing cost.
This means that artists can adjust their markup accordingly to ensure they are earning a fair profit while still offering competitive prices to potential customers.
In the following sections, we’ll delve into the specifics of Redbubble’s commission structure, including how to calculate potential earnings and tips for optimizing your pricing strategy as an artist on the platform.
Redbubble’s commission structure:
From an artist’s perspective one of the important factors is the commission structure, which determines how much of the sale price they earn as their profit. In this section, we’ll explore how the commission structure works on Redbubble, including the base price, markup, and potential earnings for artists.
The base price refers to the cost of manufacturing and producing each product. This includes the material cost, labor, and other expenses incurred by Redbubble. The base price varies depending on the type of product, size, and other factors. For example, the base price of a t-shirt might be $10, while the base price of a canvas print could be $50.
The markup refers to the percentage of the base price that an artist adds as their commission. For example, if an artist sets a markup of 50% on a t-shirt with a base price of $10, the sale price would be $15 ($10 + $5). The artist would earn a commission of $5, which is 50% of the base price, while Redbubble would take the remaining $10 as their profit.
The markup percentage can vary depending on the product and the artist’s preference. However, Redbubble has set a minimum markup of 20% for most products, which ensures that artists earn a fair commission on their sales. Artists can set their markup higher than the minimum to earn a higher commission, but this might affect the competitiveness of the product’s price.
The potential earnings for artists depend on several factors, including the product type, markup percentage, and the number of sales. Some products have a higher markup potential than others, such as stickers, which can have a markup ranging from 100% to 200%. This means that an artist could potentially earn double or triple the base price as their commission on a sticker sale.
For example, if an artist sets a markup of 150% on a sticker with a base price of $2, the sale price would be $5 ($2 + $3). The artist would earn a commission of $3, which is 150% of the base price, while Redbubble would take $2 as their profit. If the artist sells 100 stickers with the same markup, they could earn $300 in commission.
Comparing Redbubble to other marketplaces:
When deciding which online marketplace to use, it’s important to compare the commission rates and features of different platforms. For example, Society6 and TeePublic have similar commission structures to Redbubble, while Zazzle’s commission rates can be as high as 97.5% for certain products.
Other factors to consider include the audience size and demographics, the types of products offered, the level of control over pricing and branding, and the tools and resources available for promoting your work. For example, some platforms may offer more marketing and promotion tools, while others may have a more niche audience that is more interested in your specific type of art or design.
Ultimately, the right choice will depend on your individual goals and priorities as a seller. Don’t be afraid to experiment with different platforms and strategies to find the right fit for you.
Before you move on to the next section, it is wort giving a read about the differences between Teespring and Bonfire.
Pros and cons:
There are both advantages and disadvantages to selling on Redbubble. Some of the pros include its wide audience reach, easy-to-use interface, and variety of product options. With millions of users around the world, Redbubble can be a great way to reach a global audience and build your brand as an artist or designer.
However, there are also some potential drawbacks to consider. For example, there is high competition from other sellers on the platform, which can make it challenging to stand out and get noticed. Additionally, the commission structure can eat into your profits, particularly if you are selling low-priced items.
It’s also worth noting that you have limited control over pricing and branding. While you can set your own markup and upload your own designs, you are still working within the framework of the platform, which can limit your ability to differentiate yourself from other sellers.
Tips for maximizing earnings:
If you’re looking to make the most of your reselling experience and maximise your profits, there are several tips and strategies you can use to increase your revenue. In this article, we’ll explore some of the most effective ways to tweak your markup and commission percentage to boost your earnings.
Research Your Products
One of the most important steps in maximising your profits is to conduct thorough research on the products you plan to sell. This includes looking at the current market trends, identifying popular and high-demand items, and finding reliable suppliers who offer competitive prices.
By doing your research, you can identify which products have the highest profit margins and adjust your pricing strategy accordingly. This will help you avoid overpriced items that won’t sell and ensure you’re offering products that customers are actively seeking out.
Set the Right Markup
The markup is the difference between the cost price and the selling price of a product. When selling on Redbubble, you have the flexibility to set your own markup, so it’s important to strike the right balance between profitability and competitiveness.
Setting a higher markup may result in higher profits, but it could also make your products less attractive to customers. On the other hand, setting a lower markup could make your products more affordable but may not generate enough profit to sustain your business.
To set the right markup, consider the competition, your target audience, and your desired profit margin. Start with a reasonable markup and adjust it based on your sales and customer feedback.
Utilise Discounts and Sales
Discounts and sales can be a powerful way to attract customers and increase your sales. By offering discounts or running sales, you can create a sense of urgency and encourage customers to make a purchase.
To make the most of discounts and sales, consider offering them during peak shopping seasons, such as holidays or special events. You can also create exclusive offers for your followers or use social media to promote your discounts and drive more traffic to your store.
Focus on Customer Satisfaction
Finally, one of the most effective ways to maximise your profits is to focus on customer satisfaction. Happy customers are more likely to make repeat purchases and refer others to your store, which can significantly increase your revenue over time.
To ensure customer satisfaction, make sure you offer high-quality products, provide accurate product descriptions, and offer excellent customer service. Respond promptly to customer inquiries and address any concerns or complaints in a timely and professional manner.