Glossary of Terms
Product Price | The production cost of a product. This does not include tax, or delivery, or commission, or discount. It is 100% cost. |
Markup | The amount that is added to the Product Price to determine what the buyer will pay (i.e. the Subtotal). As the owner of the image, you get to set this amount. |
Subtotal | The total price a buyer pays for the product minus shipping. |
Discount | The amount of savings shown to the end buyer before they make the purchase. A Discount would be set by Format and applied across all Format Prints Marketplace listings. You have no control over this. |
Shipping | The amount of shipping costs for the total order. This is calculated by our fulfillment parter based on where the buyer is. |
Taxes | We do not calculate taxes on sellers behalf |
How does Prints Marketplace pricing work?
[ Product Cost ] + [ Markup ] - [ Discount ] = Subtotal
Buyer Pays = [ Subtotal ] + [Shipping Charges]
What is my payout (how much do I make from each sale)?
Your profits from each sale will vary depending on which Format Portfolio plan you are on. The formula to determine your profit is as follows:
[ Subtotal ] - [ Product Cost ] - [ Marketplace Commission ] = Your Payout
Marketplace Commission is a % of the Final Price
Example:
You are on a Format Pro plan, which has 15% Marketplace Commission
Product Cost of $100 Framed Canvas
You set the Markup to $100
End buyer applies 10% off Discount Code
End buyer pays $180
[ Product Cost ] + [ Markup ] - [ Discount ] = $100 + $100 - $20
Your profit is $50
[ Subtotal ] - [ Product Cost ] - [ Marketplace Commission ] = $180 - $100 - $30
How do Taxes and Shipping charges affect my profit?
They don't. Shipping charges are added to the Final Price.
User pays = [ Subtotal ] + [ Shipping Charges ]
Are Shipping costs included in the Final Price?
No, shipping fees are extra. They added to the Final Price during checkout.
They vary depending on the shipping address.
Shipping costs do not impact your markup or profits.
Why does Format charge Marketplace Commission?
Format uses proceeds from the Marketplace Commission to advertise the marketplace, to attract buyers for your work, cover the costs of payment processing and marketplace hosting fees.
What are the Marketplace Commissions per plan?
Pro monthly/yearly | 15% |
Pro Plus monthly/yearly | 5% |