Cafepress Creates Zazzle's Lucky Day

Today Cafepress made a big announcement. A big, fat, STUPID, really-bad-for-business announcement. (Read the announcement here.)

Cafepress is a POD (print-on-demand) company, where entrepreneurs, artists, designers, and anyone who wants to have some custom "stuff" (t-shirts, posters, cards, and more) can upload their designs, and set their own commission rate, and sell the items to all comers, either through setting up custom shops on Cafepress, or through Cafepress's Marketplace which lists all items comingled.

Cafepress makes money from the item's (hefty) base price, and the sellers make their money through commission fees from setting the retail price at whatever is right for them, whatever the market will bear, given the seller's situation.

Today Cafepress announced that starting June 1st, they will no longer let sellers set their own prices. All items sold in the Cafepress Marketplace will be sold at new prices that will be set by Cafepress, and the sellers/designers will only get a 10% commission.

That's right. A seller, who has spent years developing his designs, setting up his Cafepress shop, driving traffic to it, and creating a customer fan base, will now see his commissions reduced -- drastically.

Oh, sure, Cafepress says sellers can still set whatever commission rate they want in their shops, but once buyers learn that they can buy the items they like that they see in your shop for much less simply by going through the main Cafepress home page, aka the Marketplace -- well, how many will choose to pay the higher price?

So now having a Cafepress sellers shop -- which is something that Cafepress charges $$ for -- is almost pointless. All the website design and shop promotion and time that sellers put in to developing their shop's personality, image and following will mostly be for Cafepress's benefit now.

So, what's a seller to do? Well, you can run over to Zazzle, where they will welcome you with open arms.

Zazzle will even give you a FREE SHOP.

Yes, it will be a lot of work - set up a shop, learn a new system, re-upload your images, and edit them to fit the Zazzle merchandise. Not to mention, change all the info and links on your own websites and blogs -- and business cards, and... well, it's a big ole hassle. But that is Cafepress's fault.

At least Zazzle is there. Along with their large selection of items to put your images on. And the freedom to sell at the price you set!

Another option is to make your Cafepress items invisible to the Marketplace listings, and then sell them through your own website, using Cafepress as a drop-shipper. This is the easiest option for those who already have their own websites, or have generated most of their sales through traffic that you drove to your Cafepress site yourself.

But this still lets Cafepress make the hefty base price, so they don't really lose any money from your sales. EXCEPT - that the reason they say they are making this change is SUPPOSED TO BE to enhance buyers experiences -- Jeesh, they must be reading from eBay's playbook -- and we all know how well that's working for eBay!!! -- and when Cafepress's shoppers find LESS selection, fewer quality images, and nothing from their favorite designers and artists -- well, that's not exactly enhancing their experience, now is it? How many will not return, especially once they see all of Zazzle's newest additions.

But if most of your Cafepress sales have been from their Marketplace, not your CP shop, then you have a tough decision to make. Stick it out, and be content with 10% from Cafepress's new pricing. Or... hmmm...

Cafepress is not the only one who will be hurt by this decision.

Cafepress was a great company that allowed 1,000s of artists and entrepreneurs to reach collectors and fans, and make a living doing their "own thing".

Guess now we'll all have to "Zazzle 'em, baby!"

'Tique Talk is published by msdowantiques.com