Shopkeeper reaction:

Since I started -
1) Shop Section Size Limited.
2) Volume Bonus Gone.
3) Fixed Pricing on Marketplace Sales.

What’s Next -
4) CP Hires Own Designers and Copycat (steals) Most Popular Designs.

Shopkeeper reaction:
Wow. Just wow.

And I just opened up a new premium shop today, too. Then I came to the forums, read the news, and promptly closed the new shop! In the comments section I made sure to tell them, in no uncertain terms, WHY I was closing my just-opened shop.

Well, time to start workin’ double time at those other PODs.

Shopkeeper reaction:

Lets do the math. A base price for a shirt for $14.99 and CP sells it in the MP for $24.99. You make $2.49 and the remainder, $7.51, goes to CP for doing such a great job. Another pay cut for me and another fat check for a CEO.

Shopkeeper reaction:

Has anyone else noticed how many people are currently logged into the forums now? 288 last I saw. That is the most I have ever seen in my 4 years here.

I was JUST looking at that and was coming to comment on it. It’s impressive! Sadly for CP, they are all saying the same thing. CP just screwed themselves.
It’s up to 315 and you’re right … not one CP employee is logged in. That’s sick!

Shopkeeper reaction:

As of the change I’ll be opting out of the MP. Not to mention spending all of my time at the competition. Then likely closing these shops when I get caught up in other places.

Have no choice. I refuse have my products sold at two different prices. Low in the MP and high in my shops is pretty much like committing suicide. Past customers will hate you. New customers will be nickels and dimes.

Shopkeeper reaction:

Here is an interesting thought.
What happens to CPs ranking on Google if a significant number of Shop Keepers change all of the links on their personal websites to another POD?
That is what is going to happen if this ends up significantly reducing top SKs income.

Shopkeeper reaction:

Come June 1st, I’ll be so gone from CafePress. When I think about all the hours I put in here and for what? I really feel for all of you who depended on CP for your main income. It’s just not right. Way to go CafePress! Not.

Shopkeeper reaction:

Maybe CP needs to start selling lubricant so it goes in easier. I am SO PISSED!

Shopkeeper reaction:

OMG! They can’t be serious?! There will be no one here. I know I will be closing my shops. I haven’t worked for those kinds of wages since I was in art school some 30 years ago. I was hoping to supplement and income on this and I’m only up to making about 200-400 a month now. I won’t get any check. Ya know, we kill or selves to eek out a living, and then this. I think CP just cut off their nose to spite their face.
It’s been fun guys!

Shopkeeper reaction:

Since they took away the bonus from MP sales, we expanded out to several other places. What we found out over the last year is that it is OUR designs that sell, not just the fact they were here on CP.

If it comes down to making a couple of bucks here, why would I want to keep my designs here that I am making 3-4 times as much on at other places? Why would I want to compete with myself?

Shopkeeper reaction:

Regarding the announcement:
For those of us who make a living on CP or who have come to depend on CP income, this is devastating.

I was one of those people who always wanted to give CP the benefit of the doubt. I cannot do that now. This is just SO wrong on so many levels. I really am totally “aghast”.

Since Cafe Press has abandoned any semblance (in my view) of being fair (25% or 30% I might, just might be able to live with), I honestly am not motivated to upload one more design (and mine are unique) even if I may be shooting myself in the foot. I also will be directing my web site links to my home pages on another POD where I will now be spending all my time.

*Thinking sadly to self “I never thought I’d have to learn to live with a knife stuck in my back from an entity I cared so much about.”

Cafepress Shopkeepers are revealing their feelings on New Blogs such as TMCNet.com
A small sample of some of the posts:

Pricing and Designer commission structure changes in order to offer their customers consistent and competitive prices and invest in their site experience- They fail to mention that they are literally putting many of their top shopkeepers out of business with this latest (and supposedly greatest) endeavor forcing us to accept a pittance of 10% over cafepress base pricing. (which by the way amounts to only about $1.80 per shirt) This is Unacceptable by most of their top shopkeepers who put their heart and souls into their work and like me depend on this as their total income – Cafepress is losing may of us who are going to set up shop at Zazzle.com – who has beefed up their customer service in the last 24 hours to help new artists get started in the new galleries opening up. This is a sad day for loyal artists who have trusted Cafepress and worked hard to put Cafepress where they are today- a real knife in the back – One shopkeeper describes it as the sinking of the Titanic with the 10% being the iceberg and the shopkeepers jumping ship- I have to agree.

More Focus on Buyer Needs? – no more focus on Cafepress Income and NADA for the hard working artists who have come to depend on the CP paychecks to pay their mortgage and bills.

CafePress’ consistent and competitive pricing idea fails to take into account the fact that people aren’t shopping there for the products — they’re shopping for the designs. The current structure allows the designers to compete against each other, and now they’ll be competing against CafePress itself. Not smart.

Cafepress is feeding the need for greed. This is a slap in the face to their shopkeepers. The shopkeeper used to provide art, now its called product. Fred and Maheesh used to talk to the Shopkeeper’s ( Where are you now guys?) This is the second “strategy” that has taken money out of the pocket of the shopkeeper and put into CP coffers. This is not for the consumer, this is just greed. The shopkeepers are leaving in droves to Zazzle thus there will be less products for the consumer. Fred/ Maheesh did you hire AIG execs to come up with this? Obama will not bailout Cafepress.

(My personal Favoirite:)

As a cafepress shopkeeper since 2004 and this being my sole income, my business will no longer survive under their new terms.

We designers have been dealt such a series of blows over the past year that it raises some serious questions as to the true viability of Cafepress’s ‘bright’ future, and makes me question if they are having serious financial problems behind the scenes.

First were changes to their affiliate program, significant raises in the base prices of some goods (some items like buttons nearly tripled in base price?), and drastic reductions in the volume bonus program conveniently just before the election product sales boom. Now, dropping commissions for marketplace sales across the board to 10%, whether someone spent 10 hours on a design or 10 seconds.

It also appears likely, according to their own statements, and avoidance of directly answering questions, that they will also be removing links in the marketplace designs to the actual designers’ shops, which is minimized as it is. They are doing everything they can to discourage the buyers from entering a designer’s shop or even knowing who created the design. They already stopped allowing shopkeepers to put shop links in their design descriptions for exactly this purpose.

I predict that although a lot of less talented shopkeepers who can’t get away with charging large markups on their designs anyway will most certainly stay, it is the real and true artists and designers that draw buyers to high-quality and unique designs who will opt out of the marketplace or leave altogether, ultimately taking their unique niche customers with them.

I can only hope that print-on-demand competitors like Zazzle take advantage of Cafepress’s suicidal business decisions and learn from their mistakes by not treating their designers in the same fashion. Put on your seatbelts folks, the Print-on-Demand world is about to be rocked!

This top shopkeeper will not be a CP shopowner after May 31. I simply will not be undercut by Cafepress’ marketplace and pay a $60 shop fee on top of that. I’m not getting value for my $60 shop fee and I’m being undercut price wise. If I have to generate my own traffic I can do that with a Zazzle store and my own websites. Up yours Cafepress.

Well I started this blog with the intention of helping people out of the bad economy by making and selling t-shirts via Cafepress and Zazzle, and Printfection with the header being my $10K check from Cafepress -
Which BTW had these sales been in June of this year upcoming the check would look more like $1,000 due to a new agreement policy:
Here is the announcement just sent out and let me tell you – there are Plenty of Pissed off shopkeepers that will be leaving Cafepress and or removing their items from the marketplace.

Read the announcement from Cafepress – no matter how they try to sugarcoat it it still is SCREW YOU to the shopkeepers.

4/22: Announcing Marketplace changes

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 algorithm to 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 marketplacequestions@cafepress.com. Depending on the questions, we’ll either answer them directly or publicly at Shopkeeper News & Announcements page.

FAQs

Marketplace Evolution

What’s changing?

We’re launching the next generation of the CafePress Marketplace. Through these changes, we’ll increasingly deliver a more positive experience for shoppers – all while poising ourselves for the next burst of growth. Specifically, we’re paving the way for a more streamlined shopping experience. This includes changes to the search platform and site merchandising. It also includes adjustments to pricing and updating to our commission model. Each of these changes is designed to foster continued growth and further promote our offering. Additionally, we’ll also be making enhancements to help Shopkeepers enjoy a stronger brand presence for their own shops.

* Search Platform and Marketplace Algorithm Changes
* New commission structure for Marketplace sales
* Increased Shop Branding

Search Platform and Marketplace Algorithm Changes

1. What search platform and algorithm changes will be rolling out over the next few months?

All changes we’ll be making to the search platform and algorithm will be gradual, rolling out over the course of many months. These changes aim to achieve the following goals:

* Help shoppers more easily find products they’re looking for, through search and site navigation
* Better expose those quality designs on the first few pages of search, by securing “premium shelf placement” for quality and innovative designs
* Reduce design redundancy

In early May you’ll see new Marketplace navigation. This new navigation will give customers more clarity about the types of physical merchandise we sell. In addition, the new navigation structure will better expose the vast topic areas available in our catalog.

2. How does CafePress know what buyers want?

Based on search and sales data, we know what items shoppers gravitate towards. We’re now taking a more proactive role in making sure that these products are easier to find.

3. What do you mean by reducing redundancy?

A simple search on any popular search term, like “army”, is a great example. Chances are you’ll get 20 or more very similar designs in the first few pages. Some of the designs are likely to be high-quality, but the shopping choice often lacks diversity. Reducing redundancy means pushing the most unique assortment of designs onto the first pages, so that customers can find what they’re looking for within the first few pages of search results.

4. What topics are considered saturated or redundant?

Topics that are typically popular or mainstream tend to be saturated with many designs. A few examples: search for “dog” and you come up with 630,000 designs; “army” you get 102,000 designs, “Christmas” you get 268,000 designs, etc…

5. Do these changes address tag spam?

Yes, this is a step towards addressing tag spam. As you can imagine, tag spam cannot easily be fixed with one solution and we will continue to address it in the coming months.

6. Will my designs continue to show up in the Marketplace?

Just like today, if your designs are tagged, they will show up in the Marketplace.

7. How will this impact my placement in the Marketplace?

Placement in the Marketplace will vary from design to design, depending on many factors. A design on page one of a popular, saturated topic may not appear on page one after these changes roll out. In contrast, many quality designs that have had poor placement may now see higher placement in search results.

8. Is CafePress confident this change will improve a shopper’s experience in the Marketplace?

We are confident that we’re taking the right steps. The most immediate changes will give shoppers consistent pricing and less redundancy for popular/saturated topics. We will continue to work to improve the shopping experience in the Marketplace over the next few months.

This change is all about listening to our customers. They tell us we’re making it way too hard for them to find relevant, quality designs. We are confident that these changes will improve the overall shopping experience

9. Will there still be a link to my shop from the Marketplace?

We realize that different pricing for the same product in the Marketplace, and in your shops, could cause customer confusion. We are working on a solution for customers to quickly see, within the Marketplace, other designs and products you offer. Look for these changes in the upcoming months.

New commission structure for Marketplace sales

1. Why is CafePress setting the pricing in the Marketplace?

Inconsistent pricing on the same product makes shopping confusing for customers. Customers need to know that they can find quality designs at a great price – always. Also, by taking control of the pricing, we can ensure we’re seasonally competitive and that we can respond to market conditions along with other online retailers. It also lets us offer timely promotions and sales that can maximize conversion during key seasonal retail periods.

2. Why change the commission structure for Marketplace sales only?

We’ve recognized that the economics of the Marketplace are different from the shop platform. With the Marketplace, we spend a great deal of resources to drive quality traffic through marketing and search engine marketing. However, with the shops platform, shopkeepers invest time and money to generate their own traffic and sales. By separating Marketplace pricing from Shop pricing, we are able to maintain competitive base prices for shops – while avoiding the need to ask our shopkeepers to help fund growing Marketplace traffic.

The 10% commission structure gives us the ability to take a more proactive role in managing a good retail experience, and to make a continued investment in customer acquisition (search engine marketing, advertising and other marketing initiatives) that will grow our Marketplace.

3. Are there plans to change the commission structure for Shops?

No, we have no plans to change the commission structure for basic or premium shop

4. Did CafePress consider other options before deciding on the new commission structure?

Yes, we considered many other options. We understand these changes impact sellers and our decision was made only after careful consideration. These changes are critical to the vibrancy of our long-term business.

5. How did CafePress determine the commission rate of 10%?

This decision was a combination of what was realistically affordable, what we thought felt was right, and what industry experts recognize as a fair design licensing fee. A 10% commission is lower than the average seller margin in the Marketplace, but fair – relative to current retail design licensing models. Most importantly, it affords us the ability to take a more proactive role in managing a good retail experience, driving customer acquisition (search engine marketing, advertising and other marketing initiatives) and continuing to grow our Marketplace over time.

6. Is the commission for Marketplace 10% of the retail price?

Yes. Commission for Marketplace sales will be 10% of the retail price.

7. Will surcharges, such as second side printing and larger sizes, be included in the commission?

Yes, we will determine commission based on the total retail price, including surcharges for second side printing and larger sizes.

8. Does the new commission structure apply to all products?

No, there are a few exceptions:

* Books will maintain the mark-up commissions as assigned by the Shopkeeper
* CDs will maintain the mark-up commissions as assigned by the Shopkeeper
* Flip Mino and Flip Mino HD will earn a flat $10 commission for Marketplace sales.

9. Why are Books and CDs exempt?

Books and CDs are exempt from these changes because sellers of Books and CDs are largely responsible for driving their own traffic and sales of their proprietary content.

10. What are the planned retail prices for Marketplace products?

Over the course of the next few months we’ll be testing prices to determine the optimal price points for our customers and conversion. Retail prices in the Marketplace prices will not remain static, and will change from time to time as we test. Our tests will fall within a “Low to High” range for each product.

A few examples:

Product

Sample Price Range

Men’s Light T-Shirt

$20.00 – $25.00

Women’s Zip Hoodie

$35.00 – $40.00

Keepsake Box

$22.00 – $28.00

Small Mug

$12.00 – $18.00

Large Poster

$18.00 – $25.00

11. How does the new 10% commission work with coupons?

As it is today, coupons will not impact the retail price or shopkeeper commission.

12. Will retail pricing in the Marketplace always remain the same?

No, retail prices will fluctuate depending on seasons, special events, or special promotions. In fact, shortly after June 1, we will be doing a round of price testing to determine optimal Marketplace retail price points. This means that retail prices of the same product may vary from one day to the next.

13. If the retail price of a product varies, does that mean my commission will also vary for the same product?

Yes, your commission can vary for the same product. It will depend on the final price at customer checkout. For example, a White T-Shirt sold in the Marketplace for $22.99 will receive a commission of $2.29. The same White T-Shirt sold during a promotion for $19.99 would result in a commission of $1.99.

14. If I don’t markup my products, will I still make a commission when my design sells in the Marketplace?

Yes, all products in the Marketplace will have the same prices, including those that are not marked in shops. All Marketplace sales will result in a 10% commission of the retail price. However, if you don’t markup your products, you will not earn commission for sales through your shop.

15. Will this in any way affect the pricing in my shop?

No. This change will only affect Marketplace retail prices and commissions.

16. Is the economy a factor in these changes?

No. Creating a quality experience and growing the business are things that should be done in any economy. This is a change to improve the long-term vibrancy of the CafePress business.

Increased Shop Branding

What enhancements are being made to further promote my shop brand?

* We’re moving CafePress branding from the top of your shop, to the bottom of your shop.
* Customer’s purchase receipt emails will highlight shop names, indicating where those purchases were made.
* Customer’s receipt will show the name of the shop where purchases were made, at the top of the receipt.

Zazzle Print on Demand

Quoted from:
Mass Customization & Open Innovation News

He had some very interesting points about the importance of the experience of customizing a product and how that can be as important as the product itself.

Niching the niches: The unique vale proposition of Zazzle comes from utilizing the broadest possible scope of needs. Each day, about 50K new products are being created, most addressing a very tiny demand – but in total, this sums up. This also allows them to operate with almost no clear definition of target groups or target customer segments: While the “soccer mom” is the single largest customer of Zazzle, it is by far not its majority. The platform is build to cater to all different groups and clients.

Read the entire story and all 10 observations: