June 12th, 2009 Posted in The Rest | No Comments »
CafePress’ promised/ threatened changes in their MarketPlace took effect on June 1st. They are now controlling the selling price of all merchandise there, and paying the designer a paltry 10% royalty. In addition, they are doing extensive testing of price points on all merchandise types. It may well be that most shoppers won’t realize that the t-shirt selling for $22 right now was $18 an hour ago, and might well be $25 next hour. So there may be limited shopper displeasure and confusion- which was part of CP’s official rationalization for their drastic rebuilding of their MarketPlace pricing.
But the frequent changes mean that designers who have products that sell frequently are seeing sales reports that look like the Dow Jones average on a busy day. And there are sales being made in their MarketPlace at prices as high (or higher) than any designer has posted in their CP shops; the sub-directories displaying our designs that we can (for a fee) customize and set selling prices. But the average designer is getting from 40 to 70% less for a MarketPlace sale. Or, in other words, a huge influx of revenue for CP that is, supposedly, being used just to increase the promotion of their MarketPlace.
All these things have contributed to the feelings of anger, hurt and outright betrayal on the part of most designers. Some have added shops at, or moved all their designs to, other POD firms. Some are continuing at CafePress but ‘opting out’ of the CP MarketPlace and keeping their Shops open. Each designer has to decide how to move forward in light of these drastic (understatement) changes and their own situations.
The following was originally posted at the CafePress forums in response to suggestions that I am supportive of the new CafePress MarketPlace.
“Not one of my posts here (the CP forums), on my blog, or in the other forums where CafePress’ business practises are being discussed has stated any support for them. I believe their business decision about their MarketPlace to be unwise if not self-destructive, short-sighted and a personal insult to the stated support for the community of designers that once made this place something more than any other firm. Even should economic factors not cut sales volume, I will lose somewhere around 45% of the revenue I made at CafePress in the last 12 months. And, although I have more than a dozen shops at other sites, they are not yet producing as much.
“But none of that means I am going to ignore the reality that CafePress’ new MarketPlace, contrary to many opinions expressed here and elsewhere, is not anti-capitalistic, communistic or an attack on the free market system. In fact, it epitomizes Capitalism. CP has decided to use the strength of their brand, their volume, their marketing knowledge and supplier relationships to grow their company. And because this is a somewhat free market system there are competitive firms you can decide to use. Or you can set up your own firm.”
There are plenty of others writing about what is happening. One great post about this, with links to a variety of CP Shops where shoppers can support independent designers, is at: EatingTheLotus.