Most interesting to me is that 36% of TF buyers answered “As many support requests as I need”, and 19% said with “As much time as I need”.
Hopefully when an author chooses to refund the customer their money, the customer will be restricted from posting comments on the author’s item afterward. Because the 36% and 18% above are the customers who usually end up abusing support at some point. So it wouldn’t be fair to try and help someone, then end up issuing a refund, and then after all that, having to endure the customer’s wrath in the item comments
Congrats on the launch Damir and everyone else who helped contribute to the project. Looks amazing!
My point is, once items are gone from TF, existing buyers will have no guarantees. Some authors could be selling all/part of their items elsewhere, others might not. On top of that, updates will have to be distributed manually.
Since some support will be purchased, I wonder if Envato would file for a charge-back in a situation where the support obligation is not fulfilled.
That said, Envato differs pretty greatly from Amazon in terms of the control that each gives their sellers. Amazon, for one, allows its customers to set their own price, making it more of a true marketplace where sellers come to sell their own products and pay Amazon as the third party intermediary.
Yeah this is definitely the major difference. Sellers also have direct access to all customers, as I often get “follow up” emails from the seller after making a purchase.
Seems Amazon is probably the best comparison for this, and although it’s hard to find official information about fees + taxes on their site with regards to sellers, from viewing some forum threads, it appears they do it the same way—i.e. report gross, and seller has to claim Amazon’s cut as an “expense”. Does anyone have any experience selling on Amazon?
When I said “we shouldn’t focus on the ‘commission’ part of the argument”, I didn’t really understand VAT completely, and was thinking about how this affected U.S. authors only. But after reading some recent posts, I really feel bad for the upcoming ramifications this is going to have on European authors, as it seems way worse than what U.S. authors are going to have to deal with.
Apparently the terms of service has always said it’s not a commission system and we are the sellers.
When I search my email inbox for the words “envato commission”, dozens of emails say otherwise. But there’s no point in arguing this in my opinion. Because it detracts from the more pertinent issue, which is the fact that no one here is on board with the idea of reporting income that we were never actually paid.
I’m wondering if the “fee” structure was launched this summer without consideration of the new tax reporting policy. And if so, is there any reason why the structure can’t just be changed to put the entire fee on the seller? Wouldn’t that pretty much solve the problem?
This sounds familiar: http://www.microstockdiaries.com/shutterstock-and-tax.html
The difference is people there seem to be opposed to the reporting itself. Whereas here, we have not objection to the idea of reporting our income. What we object to is the fact that the reports won’t be matching our bank account statements.
The solution for this is easy:
- Send all authors 80% on the 15th (or whatever the current author rate is + 10%)
- Require that all authors repay 10% within 3 days
- If the 10% isn’t repaid in time, the funds are automatically seized from the account’s current balance, and the account gets disabled.
The reason why this works is that 99% of all authors will have at least 10% of their previous month’s earnings in their account balance on the 18th of the following month. So it will be very easy for Envato to recoup the 10% if for some reason it isn’t paid back.
Congratulations Mudi Very impressive considering most of the sales are from GraphicRiver!