Fees for Selling On Gypsy Spoonful
We lay out everything in a very transparent way here at Gypsy Spoonful. What you see is what you get. There are no hidden fees. We have no secrets, no confusion, and everything is outlined publicly, for everyone to see:
- Listing Fees: NONE
- Membership Fees: NONE
- Monthly Shop Fee: NONE *
- Sitewide all members agree to give free basic shipping for US orders, You may increase your product prices to cover your shipping costs. (product cost + shipping costs/handling fees = total listing price)
- You may list as many items in your shop as you wish, there are no limits, at anytime.
- Listings run FOREVER, Until you close your shop and you can RENEW at any time for FREE.
- One time shop set up fee of $10 (non-refundable) will be invoiced to new members upon approval of their membership application.
- Yearly advertising contribution of $12 (pro-rated if you join after Sept. 1st)
- We ask for a back up funding source: specifically a credit card in case there are ever any problems. Your card will never be charged (unless you skip town and join the circus and leave us holding the bag for your shop). The information is stored securely, off site with no possibility of anyone’s eyes ever seeing the information. It’s our “insurance policy” to be sure orders are fulfilled for our awesome customers.
- If you abandon your shop, and we are forced to close it after 30 days of inactivity, you will be invoiced for a $25 inactivity shop closure fee.
If your item doesn’t sell, you don’t pay ANYTHING
When you apply for membership, depending on your level of online selling expertise, and presentation (photo quality etc) we will assign you a level of membership at the onset; either our Standard Membership, OR our Auxilary Membership. The goal with the Auxilary membership is to coach/mentor you and teach you how to improve your skills to bump you up to the Standard membership after a period of time. All members are also required to contribute $12 a year (per shop) to our community advertising fund.
When you sell an item:
- Gypsy Spoonful collects a minimal commission. What you pay in this commission covers all fees with the exception of the withdrawal fee.
- Standard Membership Level: The commission fee is 3.5% plus Paypal fees (Paypal fees are 2.9% + $.30 on every transaction in the US and Canada).
- The remaining monies from your sales are stored in your account and you may withdraw them at any time. There is a fee of 2% of the amount you withdraw. (Please note, we use an automated payment system called “masspay” and they charge us a 2% fee to withdraw the monies, we don’t keep this money, it is automatically deducted by masspay, we’re just passing along this fee to the shopowner. The larger we grow and the more sales we make, we will get better rates and be able to eliminate this masspay fee).
- UPDATED : March 2019: We are phasing out the mass pay fee and as soon as the custom payment system is developed and put in place, there will be no more 2% masspay fee deducted. Monies will go directly to your paypal account instantly after a customer pays for their order.
The ONLY fees Gypsy Spoonful keeps are the commission amount on sales.
Note: Any coupon discounts you set up and choose to offer through your store are calculated AFTER the coupon’s discount, before commission is calculated
These fees are subject to change, but will not be changed without a 30 day notice. If paypal or masspay fees ever go up, changes will be noted and we will do our best to notify everyone ahead of time.
You may qualify to receive a 1099-K form if you meet certain profit and sales thresholds. Depending on which state you’re located in, your requirements may vary. If you receive a 1099-K form, Gypsy Spoonful is required to send a copy of the same form to the IRS and/or the tax authority of your state.
Gypsy Spoonful is required to issue a 1099-K form to you and the IRS if you meet both of these requirements:
- You had $20,000 USD in sales through Gypsy Spoonful during the calendar year.
- You received 200 or more payments through Gypsy Spoonful over that same period.
If you meet both these thresholds, Gypsy Spoonful will email you towards the end of the calendar year to ensure that your taxpayer information and mailing address are correct.
If you run multiple Gypsy Spoonful shops:
If you run multiple shops as the sole proprietor, the sales across all your shops will be combined to determine whether you have met the reporting thresholds. You are required to have the same taxpayer information on each of your shops. If your combined shop totals qualify, you will receive a separate 1099-K for each shop.
If you are located in Massachusetts or Vermont, you will receive a 1099-K form if:
- You have $600 or more in sales through Gypsy Spoonful Payments in a calendar year
If you also meet both the $20,000 in sales and 200 payments federal IRS thresholds, that information will also be reported to the IRS as well as the state tax authorities for Massachusetts and Vermont. You will still only receive one 1099-K form per shop from Gypsy Spoonful if you qualify based on state and IRS requirements.
What is a 1099-K form?
Gypsy Spoonful, like other marketplaces, is required by US law to send out a 1099-K tax form.
A 1099-K form from Gypsy Spoonful reports the total gross sales income you received through Gypsy Spoonful during the last calendar year. “Gross sales” includes all of your sales – shipping, refunds, sales tax applied using, and even canceled orders.
Don’t worry, though – you only pay taxes on your profit (gross sales minus expenses including Gypsy Spoonful fees and deductions).
For purposes of the 1099-K tax form, the following payments are not considered “Gypsy Spoonful payments”:
- Payments processed through your own PayPal account
- Money orders
- Bank transfers
- Other alternative payment methods
While Gypsy Spoonful s not able to provide tax advice to our sellers, our goal is to help you understand and navigate these requirements. We want to make dealing with taxes as easy as possible.
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