RedBubble is the WORST place to sell online

Summary

Redbubble, once a popular platform for artists, is facing increasing criticism due to its worsening profit margins for creatives. After a major fee hike in 2023, the platform is now taking up to 90% of profits, leaving artists with minimal earnings. This decision comes as the company struggles financially, with plummeting stock prices and a revolving door of leadership. The video highlights the company's decline and urges Redbubble to reinvest in artists. The creator offers to help turn the company around, suggesting they could still be successful if they respect and value their creative talent.

Takeaways

• 😀 Redbubble has increased its fees and profit cuts for artists, making it the worst place to sell art online.
• 😀 The platform previously cut artist profits by up to 90% in 2023, and now they are taking between 20-50% of profits from each sale.
• 😀 Redbubble's fee structure includes additional charges for excess markup over 20%, with a 50% markup fee applied to anything above that.
• 😀 The company has two tiers of artist profits: Standard (50% cut) and Premium (20% cut), both of which are seen as too high.
• 😀 Artists are now making significantly less, with one example showing an artist's profits dropping from $57 to just $20 due to the new fees.
• 😀 Redbubble's stock has plummeted by over 70% since 2021, reflecting the company's financial struggles.
• 😀 The company is facing leadership instability, with multiple CEOs unable to turn the business around or create a platform beneficial for artists.
• 😀 The layoffs and poor leadership reflect the company's ongoing issues and its lack of clear direction, which is affecting both employees and artists.
• 😀 The company is attempting to survive by taking more money from artists, which is seen as a desperate strategy to stop its decline.
• 😀 The speaker suggests Redbubble could improve by reinvesting in the creative talent that powers the platform, recommending a complete turnaround to respect artists and rebuild trust.
• 😀 The speaker challenges Redbubble's original mission of supporting creatives, questioning whether the platform was ever meant to help artists or was just a cash grab from the start.

Q & A

Why is the speaker criticizing Redbubble?

The speaker criticizes Redbubble for continually taking a larger share of profits from artists, reducing the amount creatives earn on the platform. The company recently increased its fees, taking between 20 to 50% of profits, and has been accused of being artist-unfriendly for years.

What happened to Redbubble's fees in 2023, and how did it affect artists?

In 2023, Redbubble reduced its already low profit margins for artists by up to 90%, taking a significantly larger portion of the retail price. This decision has led to ongoing negative feedback from artists who have felt the financial strain since.

What is the new fee structure at Redbubble, and how does it impact artists' earnings?

Redbubble's new fee structure means they now take between 20 to 50% of the profits from artists, depending on the tier (standard or premium). For a typical item, this results in the artist making significantly less. For example, an artist who would have made $57 now earns only $20, losing $37 in profit due to these changes.

How does Redbubble's markup policy work, and why is it problematic?

Redbubble imposes a 50% excess markup fee on any markup beyond 20% set by the artist. This policy is seen as problematic because it limits the artists' ability to price their products freely and results in higher costs for consumers without a corresponding benefit for creators.

What role does Redbubble's stock price play in the speaker's criticism?

The speaker highlights Redbubble's plummeting stock price as evidence of the company's struggles. After a period of growth during COVID-19, Redbubble's stock has fallen dramatically, dropping by 70% between 2021 and 2022 and currently trading at just 16 cents per share. This financial decline is seen as a reflection of poor management and a lack of direction.

What does the speaker suggest as a solution for Redbubble?

The speaker suggests that Redbubble could turn things around by reinvesting in the talent that supports the platform—meaning better treatment and fairer profit-sharing with artists. They also offer their services as a consultant to help the company improve its operations and regain the trust of its users.

What does the speaker say about Redbubble's leadership?

The speaker criticizes Redbubble’s leadership, pointing out that the company has had a revolving door of CEOs who have failed to make the company profitable or artist-friendly. This lack of stable, effective leadership is seen as a major reason for the company's struggles.

Why does the speaker think Redbubble is 'actively dying'?

The speaker believes that Redbubble is 'actively dying' because of its inability to create a sustainable, profitable business model, poor leadership, and its exploitation of artists. The continued loss of trust from creatives and a lack of viable solutions for long-term growth further contribute to this view.

What alternatives does the speaker suggest to using Redbubble?

The speaker recommends that artists consider leaving platforms like Redbubble and building their businesses on their own terms, whether through social media, in-person sales at art fairs, or other independent channels. They also suggest that artists should learn how to better manage their business using resources like their own book and video series, Business Breakthrough.

How does the speaker compare Redbubble to its competitors?

The speaker compares Redbubble unfavorably to competitors like Society6, suggesting that the bar for success in the artist marketplace is so low that even mediocre companies can seem like viable alternatives. They emphasize that Redbubble could be exceptional if it valued its artists and had a coherent strategy.