We’ll soon be introducing a change to the fee structure for new ArtFire merchants which includes tiered plans and a commission on sales at each plan level. The percentage is variable based on each merchants’ needs and allows us to better fund marketing efforts, bring in more traffic to the marketplace and continue to improve overall site performance.
Collecting commissions on sales is a common practice for online marketplaces as it better economically aligns the partnership between a marketplace and merchants, and is an accurate method for fairly attributing costs to small and larger merchants as in most cases sales volume correlates with site usage, resource allocation and marketing spend.
As part of the introduction of the new tiered plans we've taken into consideration the many suggestions sent to us about ads on ArtFire and have created several plan levels that offer a reduced or eliminated presence of 3rd party ads in shops and on item pages. We’ve also built special conditions and account levels for our legacy merchants.
Newer merchants will have the option to move into or between any of the upcoming plan levels. Some of our longstanding legacy merchants enjoy special promotional pricing and to preserve that benefit we’ve created a special account level that maintains legacy locked base rates. The special Legacy Option account gives our Legacy merchants all the benefits of the the $20/month higher tier base rate account at the lowest commission rate available. If you are happy with your Legacy account the way it is now you can keep it or opt to upgrade it here.
The best way to see the options for legacy merchants and how they stack up against the future plan levels is to share the pricing and features matrix with you. This is a working document that outlines the major components at each plan level that we are currently building. Please keep in mind that this is an internal document we use for reference, this matrix will not be presented to merchants as-is on a plan selection or signup page.
We're in the process of building the infrastructure and components necessary to make this transition successful. Our goal is to release this change along with a new custom shopper experience and on-boarding process for new merchants in June. We are, however, opening up early access to the Legacy Option features for our long standing Legacy merchants who commit to being automatically transferred to the Legacy Option plan in June.
If you choose to select this option your monthly rate won’t change, ads will be removed from your items pages now and commissions on sales will not be assessed until after the new program launches sometime in June.