How much will it cost to sell my patterns?

We want to make sure we’re supporting designers as much as possible, and that includes keeping our fee structures fair and affordable.

The great news is that it’s free to list your patterns on LoveCrafts. When you make a sale, there is a payment transaction charge on every sale. When you meet our minimum threshold of sales, there will also be a seller fee per pattern. But there is a maximum threshold of sales at which point we will stop charging the seller fee

Transaction costs and Seller Fees

From 1st June 2022, the fees detailed below will apply to all sales.

The transaction cost applies to all sales. Whereas the Selling Fee is applicable only if your monthly sales are more than £30/€35/$40 and under £1,500/€1,800/$1,900.

Some FAQs on fees

→ So, what does this look like in action?

Here is a working example, based on a pattern priced at £4.50, with different quantities sold in a month by different designers. All prices in the example are NET of sales tax:

*Only applicable over £30 and not charged over £1,500

**Assuming that the total amount is >£30

→ Will I be sent a separate invoice in order to pay my fees?

Nope! The fees are automatically deducted from your sales total before we pay you and the money you receive is all yours.

→ My prices include VAT, how do you calculate the fees?

If you have VAT inclusive pricing we deduct the VAT first, then calculate the fees.

Getting paid for your pattern sales

Designers are paid a month in arrears for their pattern sales, on the 25th of the month or the next working day. E.g. for sales you made over the month of June, you will receive payment on (or around) the 25th July. This payment is made direct to your PayPal account. You will receive an invoice for these sales, normally the day before the payment, on or around 24th of the month.

It is vitally important that you make sure both your email contact address (where invoices will be sent) and your PayPal email address (the account to which your money will go) are kept up to date in your Designers account, so that you can be paid successfully.

Dependent on the Pricing Preferences you have set in your Designer account, you will be paid in £GBP, $USD or €EUR to your PayPal account.

Sales & downloads information

Sales & downloads dashboard

In your Designer account there is a “My Sales & Downloads” tab. Here you can see your sales information, your last payment date and the number of downloads you have had on free patterns

FYI If your paid patterns have been downloaded with £0.00 revenue this means customer who has previously purchased the pattern has downloaded the pattern from their library without a new sale.

Sales summary emails

Sales summary emails will be sent to you weekly and contain a short summary of the number of sales and the amount earned on paid patterns, as well as the number of downloads for free patterns from the previous week.

The email show downloads per unique user, so a customer who downloads the same pattern multiple times will show as 1 download.

You will not receive this email if you haven’t made sales or had any downloads in the previous week.

Tax

Sales tax

Sales tax is applied on sales in the European Union (EU) and certain other regions in the world. Sales tax is known as VAT in the EU,  GST in New Zealand and Australia and JCT in Japan.

Customers in the US will be charged sales tax if LoveCrafts is registered in that state

When you sell your patterns through LoveCrafts, you’re conducting a business-to-business transaction with us and we conduct a business-to-consumer transaction with the customer buying your pattern. As LoveCrafts is the one carrying out the transaction with the customer, we are responsible for managing the sales tax for pattern purchases.

You are able to set pricing preferences when you sell with LoveCrafts to include whether your pattern prices exclude or include sales tax.

Pricing your patterns Excluding sales tax

Pricing your patterns excluding sales tax means you set a base price and let us add the appropriate sales tax based on the buyer’s country. The prices will vary depending on the sales tax rate in the buyer’s country and in some locations there will be no sales tax applied. The amount you receive will be the same and will not depend on the buyer’s location.

This is the default sales tax preference setup. However, if you’d prefer to price your patterns including sales tax you, go for it!

An example of sales tax-exclusive pricing:

• Let’s say you set the price of your pattern at £5.00
• If this pattern sells to a customer in Germany, where sales tax is charged at 19%, the price the customer will see and pay is the Euro equivalent of £5.95
• When a sale of this pattern is made, we’ll pay you this £5.00, keeping the 95p to pay the sales tax

Pricing your patterns Including sales tax

Pricing your patterns including sales tax means all customers outside the US  will pay the same price for your pattern. You will account for the cost of sales tax in your pattern price and the money you receive will vary depending on the sales tax rate in the buyer’s country. No sales tax will be deducted in countries where sales tax doesn’t apply, whereas in other countries the sales tax deducted may range between 10% and 25%, depending on where the pattern is sold.

An example of sales tax-inclusive pricing:

• Let’s say you set the price of your pattern at £5.00
• If this pattern sells to a customer in Germany, where sales tax is charged at 19%, the price the customer will see and pay will be the Euro equivalent of £5.00
• When a sale of this pattern is made in Germany, we’ll pay you £4.20, keeping 80p to pay the sales tax
• When a sale of this pattern is made in country where there is no sales tax, we’ll pay you £5.00, as no sales tax is due

Self-Billing agreements

What’s that? Well when you sell patterns with us, you agree to enter into a “self-billing” arrangement with us in which you agree that we will produce an invoice on your behalf on a monthly basis in arrears for any Realisation Amounts realised due to sales of your Patterns during the relevant monthly period.

If you are VAT registered in the EU, this will be a formal VAT “self-billing agreement” which complies with the HMRC rules on self-billing.  This agreement will expire 1 year after you sign it. We will contact you to let you know when you need to sign a new agreement after 1 year is about to lapse.

If you are not VAT registered in the EU, we will still provide invoices on your behalf but they will not be valid sales tax invoices.

You must notify us and update your details on your Designer Profile immediately when your sales tax number changes, you stop being sales tax registered or sell your business.

Pricing

Pricing your patterns

It is totally up to you to chose the price for your patterns in £GBP, $USD or €EUR. Your will also select whether you would like to price your patterns exclusive or inclusive of VAT.

Regardless of how you set your pricing and VAT preferences, your customers will always see the total price they will pay, including any appropriate VAT.

When it comes to choosing the level at which to price your patterns, here are some pointers to think about:

• If you set the price too high customers may be dissuaded from buying the pattern. Lowering your price a little could increase the quantity of sales and increase the total amount of money you make.
• If you set the prices too low, this can also have a negative effect; It’s possible you will lower the expectations customers will have about the complexity or worth of the pattern. There is no reason to put your price too low just because you’re a beginner designer or ‘not a professional’.
• If you are completely unsure as to what price to set, take a look around LoveCrafts for similar patterns to use as a guide.

Pricing currency

You can choose to price your patterns in £GBP, $USD or €EUR. You will be paid in the currency you select to price your patterns in. Customers will be displayed prices in their local currency.