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[CAFEPRESS] 4/22: Announcing Marketplace Changes

 
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Old April 22nd, 2009 Apr 22, 2009 11:15:27 AM -   #1 (permalink)
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Default 4/22: Announcing Marketplace Changes

Cafepress is making major changes to the Marketplace. I'm interested in other CP shop owners opinions about these changes.

This is a quote from the Cafepress 4/22 Annoucement:

"The CafePress Marketplace launched four years ago as a way to showcase shopkeeper designs to a broader online retail audience. Since then our catalogue has grown to over 300 million products, and each month over 11 million shoppers visit CafePress to find unique and expressive products.
While our Marketplace growth has benefited many shopkeepers, others have seen commissions flatten or decline as the Marketplace becomes more saturated with redundant content. It is clear to us that to continue growing our Marketplace, we need to deliver a higher-quality shopping experience to customers, continue to invest in customer acquisition, and maximize conversion.
To do this we’re making two key changes:
  1. Beginning today: We’ll be making changes in our search platform and algorithmto ensure we’re better delivering the designs and merchandise shoppers are looking for. This includes bringing the best designs to the front, and reducing redundant designs.
  2. Beginning June 1st: We’ll start setting prices in the Marketplace, and Shopkeepers will receive a 10% commission off the final retail prices from all Marketplace sales. This change provides our shoppers with consistent pricing that’s competitive with other online retail stores. It also allows us to better invest in a quality retail experience and continued growth.
These changes DO NOT impact the pricing, markup, or sales you are driving in your own shops. By separating our Marketplace pricing from the prices you set in your shops, we’re able to preserve shop base pricing and continue to support shopkeepers who drive their own sales.
On June 1, 2009 the current Shopkeeper Agreement, Shop Services, and Pricing Policy will change to reflect the new changes to the CafePress Marketplace. The major changes are to the Shop Services and Pricing Policy. You can review the new Seller Services (currently Shop Services) and Shop Pricing Policy (currently Pricing Policy).
If you have questions, please email us at [email protected]. Depending on the questions, we’ll either answer them directly or publicly at Shopkeeper News & Announcements page."
 
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Old April 22nd, 2009 Apr 22, 2009 11:57:27 AM -   #2 (permalink)
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Default Re: 4/22: Announcing Marketplace Changes

I was coming here to post the same thing!
This is absurd!!!!! So many shopkeepers ar PO'd and leaving.
I am leaving also! My work is worth a LOT more than 10%
 
Old April 22nd, 2009 Apr 22, 2009 12:05:52 PM -   #3 (permalink)
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Default Re: 4/22: Announcing Marketplace Changes

Quote:
Originally Posted by BrendaR
I was coming here to post the same thing!
This is absurd!!!!! So many shopkeepers ar PO'd and leaving.
I am leaving also! My work is worth a LOT more than 10%
I agree it is absurd. Are you moving to another POD? I am looking at Zazzle, but not sure if I want to pull all my designs from CP. This whole situation is so frustrating!
 
 
Old April 22nd, 2009 Apr 22, 2009 12:44:21 PM -   #4 (permalink)
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Default Re: 4/22: Announcing Marketplace Changes

so, for a basic $20 shirt that's a whole $2. What a shame. That totally diminishes our role as SKs at CafePress. Do we get the option of turning off the Marketplace?
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Old April 22nd, 2009 Apr 22, 2009 12:45:40 PM -   #5 (permalink)
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Default Re: 4/22: Announcing Marketplace Changes

Those are some pretty big changes
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Old April 22nd, 2009 Apr 22, 2009 12:54:41 PM -   #6 (permalink)
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Default Re: 4/22: Announcing Marketplace Changes

Quote:
Originally Posted by stuffnthingz
so, for a basic $20 shirt that's a whole $2. What a shame. That totally diminishes our role as SKs at CafePress. Do we get the option of turning off the Marketplace?
Yes, I think there's always been an option of opting out of the marketplace.

Not saying this is the perfect decision by cafepress, but I'm curious, as a shopkeeper, is $0 by opting out of the marketplace better than the $2 that you may not have had with the marketplace promotion done by cafepress?

From what I understand, this is only for the sales that Cafepress is generating, not for any promotion the shopkeeper is doing to drive sales to their individual store.
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Old April 22nd, 2009 Apr 22, 2009 2:22:48 PM -   #7 (permalink)
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Default Re: 4/22: Announcing Marketplace Changes

As I am a homeless person and can't work on my store enough to get much direct traffic, just about all my sales come from the marketplace.

I was making enough to live on and people were happy to pay $6 mark-up. Now I will be closing my shops at CP and moving to others. My Printfection and Zazzle stores have been gaining in sales over the past few months so I will be working on those stores instead.

Bye Bye CP


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Old April 22nd, 2009 Apr 22, 2009 2:40:40 PM -   #8 (permalink)
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Default Re: 4/22: Announcing Marketplace Changes

And I thought dumping the volume bonus program at CP made the shopkeepers angry. They must have steam coming from their ears right about now. 10% is an absolute joke.

Personally I don't make jack over there anyway, so I probably won't opt out or anything, but I will maximize my effort towards zazzle and printfection over CP instead of the other way around from now on.
 
Old April 22nd, 2009 Apr 22, 2009 5:28:30 PM -   #9 (permalink)
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Default Re: 4/22: Announcing Marketplace Changes

Quote:
Originally Posted by username25
I agree it is absurd. Are you moving to another POD? I am looking at Zazzle, but not sure if I want to pull all my designs from CP. This whole situation is so frustrating!
Yes, I am moving all of my stuff to Zazzle. I have no clue what I am doing there but I am learning. I started a shop at SpreadShirt also. I am staying with CP until I get these others up and running. IF I stay I will opt out of the MP. I guess $2 is better than none but not when I feel I am getting ripped off. Yes, CP does marketing and most of us make most of our sales through the MP but if it weren't for our sales through the MP, CP wouldn't be making any of that money either.
I do have a lot of Shop sales because I market the heck out of my stores but a really good chunk comes from the MP. This is hitting a lot of SK'ers really hard!
 
Old April 22nd, 2009 Apr 22, 2009 5:41:50 PM -   #10 (permalink)
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Default Re: 4/22: Announcing Marketplace Changes

10% is not just a joke it is kinda theft by cafepress. Cause in the "marketplace changes FAQ" the want to set the retail price for a "Mens Light T-Shirt" between $20 and $25. The base price is $14.99. That could mean a markup between $5 and $10 by cafepress for the marketplace. The shopkeepers who make the designs get $2 to $2.50 for a marketplace sale. What again means that cafepress will make $7.50 more on a light shirt. Yeah sure that is fair.

I have no problem with the changes in the marketplace to fight tag spam and make some more quality designs show up in the first few pages. I also have no problem with setting prices per product in the marketplace by cafepress. But if they going to markup $10, than I want $10 and not $2.50

I think this will take a big piece out of cafepress income cake. Why should people stay at cafepress for 10% and pay for a premium shop every month if they can get their markup and a shop for free at other pods?
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Old April 22nd, 2009 Apr 22, 2009 5:42:54 PM -   #11 (permalink)
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Default Re: 4/22: Announcing Marketplace Changes

Hi

I have been looking at both Cafe Press and Zazzle. I like their excitement of their sites.

I had no success with what I wanted to do, but I think that was my own fault.

I am looking at the deconetwork system. I used their shops and they are much more detailed, but I thibk the Zazzle and Cafe press sites are huge on volume. I think that huge volume may have lost my offerings there. Their own success foils the opportunity to be seen.

What sort of success are you having at Cafepress and Zazzle. I tried for over a year and only sold to my friends and family anyway. That was not bad -but it was not the business that I want to create.
 
Old April 22nd, 2009 Apr 22, 2009 8:10:46 PM -   #12 (permalink)
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Default Re: 4/22: Announcing Marketplace Changes

Basically it is bad news for shops that rely on market place sales. I simply opted out of the market place, and removed all tags from my images. I'll keep my own pricing structure and markup thank you...

Since I started on CP, I have always treated my store as a web site all it's own. I promote it, market it and generate traffic and qualified buyers to it. NOT the market place. Sure, I've seen a few sales come from the market place but nothing near what I do from my own marketing efforts. Furthermore, in my particular niche I think my designs are far better than what the market place has in it.

Having said all that, I'll survive on CP until I research other POD options. I'll make a move by the end of the year. With the move they just made, all their good designers are going to bail and the whole site is going to be a joke. I'd rather not take part in that.
 
Old April 22nd, 2009 Apr 22, 2009 8:29:27 PM -   #13 (permalink)
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Default Re: 4/22: Announcing Marketplace Changes

I'm going to spend most of my energy at Printfection now. They don't have the range of non-apparal products but their printing quality is supurb.

Rowan

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Old April 23rd, 2009 Apr 23, 2009 8:13:05 AM -   #14 (permalink)
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Default Re: 4/22: Announcing Marketplace Changes

We used to sell through CP exclusively but several months ago set up our own site apart from CP and now sell most of our tees through our own site. We had left our designs on CP since we were making some money from the marketplace, but now, with this change, we will be removing all of our designs from CP. I am not willing to let them pay out a comission of $1-$2 for my designs, even if I made an extra $100/month through MP, it wouldn't be worth it.

I hope more SKs leave over this, this is a bad move on CPs part. It's bad for the SKs and only good for CP.
 
Old April 23rd, 2009 Apr 23, 2009 9:14:21 AM -   #15 (permalink)
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Default Re: 4/22: Announcing Marketplace Changes

Quote:
Originally Posted by tshirt4you
Why should people stay at cafepress for 10% and pay for a premium shop every month if they can get their markup and a shop for free at other pods?
This is probably not a popular opinion by me, but if CafePress is spending 100% of the money, time, effort to generate sales for the marketplace. Sales that the shopkeeper would not have had without the marketplace, it does make some sense that they would need to make sure they continue to have a budget to drive those sales.

My guess is that the marketing/advertising budget for the marketplace isn't covered by the premium shop fee or the base price. Maybe they could previously cover it when the marketplace first started, but I think the marketplace outgrew their expectations and costs more to manage than it did when it originated.

I always considered marketplace sales (for any fulfillment company) to be just gravy on top of the main sales that the t-shirt seller has to do on their own to drive traffic to their individual stores.

Yes, it's a mutually beneficial relationship (cafepress needs designs to even sell in the marketplace and shopkeepers need cafepress to keep spending big money on the marketplace to drive sales to get any money from the marketplace).

But like in a traditional retail outlet (like a brick and mortar store), CafePress is actually taking on most of the risk (overhead, advertising, printing, hosting, etc). In both situations, the party that's taking on the most risk stands to make the most of the profit.

Let me just say that I don't know if this was the best move for CafePress. It probably could have been handled better, explained better, or lead up to better. I don't know their financials, so I can't say if there would have been a better way to keep generating advertising dollars to keep the level of sales from the marketplace that so many shopkeepers benefit from. Could it have been done by raising base prices? Raising premium shop fees? Creating an "advertising costs" fee for marketplace sales? I'm not sure. But I can see both sides in this messed up situation.

One part I don't understand is that they are trying to make the pricing less confusing for the buyers, but having one pricing in the marketplace and one pricing in the store for the same design seems confusing as well.

By contrast, Zazzle has always been more marketplace focused and for the longest time they only paid 10% as well for those marketplace sales. Just recently they've added the ability for their sellers to increase their markup commission. I'm guessing by listening to feedback from the sellers. It does seem weird that cafepress would go in the reverse direction.
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