Posted and effective as of December 2, 2017
Sellers may be charged for using some of Lift Bridge Furniture’s services. This Fees & Payments Policy explains your fees, bills, taxes, and how you get paid.
1. Types of Fees
2. Fee Avoidance
3. Receiving Payouts
4. Holds and Delays
8. Reporting Obligations
1. Types of Fees
Sellers may be required to pay the following types of fees:
At this time, we do not charge a listing fee for each item that you list for sale on liftbridgefurniture.com.
This is a percentage fee for the Lift Bridge Furniture platform. This fee supports the infrastructure and ongoing development of the platform and helps us build out our marketplace. This fee also supports our sales and marketing channels and helps bring in more customers into the marketplace.
This is a percentage fee that goes to the designer of the furniture that you’re building. Designers work with us to bring new furniture designs into our marketplace. This fee gets paid to the designer each time their design gets used. For more information on how designer’s earn royalties, please read our Designer Policy.
Payment Processing Fee
Lift Bridge Furniture charges a payment processing fee for processing each transaction through it’s payment processing partners (e.g. Paypal and Stripe). This is a small percentage fee that is only applied to the shipping and sales tax charges in the order. This fee is not applied to the retail prices that you set for your products in your Lift Bridge Furniture shop.
How it works
When you make a sale through liftbridgefurniture.com, you will be charged a Platform Fee of 23% of the price you display for each listing, plus a Designer Fee of 7% of the price you display for each listing, plus a 3.5% payment processing fee for any applicable sales tax or shipping charges. In other words, you receive 70% of the price you display for each listing (the retail price) plus any applicable sales taxes and shipping charges less the 3.5% payment processing fee.
For example, let’s assume that you list an item with a retail price of $100. Let’s also assume that you configured the item with a $20 shipping fee and 6% local sales tax. Here’s how the fees would be calculated:
$100.00 – The item price
$ 20.00 – Shipping
$ 7.20 – 6% Sales Tax
$127.20 – Order Total
$ 23.00 – Platform Fee ($100 * 23%)
$ 7.00 – Designer Fee ($100 * 7%)
$ 0.96 – Shipping & Tax Processing Fee ($27.20 * 3.5%)
$ 30.96 – Total Fees
$127.20 – Order Total
– $ 30.96 – Total Fees
$ 96.24 – Total Maker Payout
If you sell from the US or Canada, the Platform Fee and Designer Fee will not apply to the shipping cost, sales tax, Goods and Services Tax, or Harmonized Sales Tax, unless you have included those charges in your listing price. If you sell from anywhere other than the US and Canada, the platform and designer fees will apply to the listing price (which should include any applicable taxes), but will not apply to the shipping cost. See the Taxes section below for more information about whether or not you are required to include applicable taxes in your listing prices.
All fees and payouts that appear on your Lift Bridge Furniture account are in US Dollars (at the moment we are operating in US Dollars only but in future we aim to open this up to other local currencies).
2. Fee Avoidance
Any action by a seller to avoid paying a fee is considered fee avoidance and is strictly prohibited by Lift Bridge Furniture. This includes, for example, encouraging buyers to purchase an item in your Lift Bridge Furniture shop through another venue. The price stated in each listing description must be an accurate representation of the sale. Sellers may not charge excessive shipping fees. Sellers may not alter the item’s price after a sale for the purpose of avoiding Lift Bridge Furniture fees, misrepresent the item’s location, or use another user’s account without permission.
Examples of fee avoidance:
- Posting a shop announcement that encourages buyers to purchase the same items listed on Lift Bridge Furniture from another online selling venue.
- Using an empty shop or profile to direct shoppers to another online selling venue.
- Editing a listing’s information to change it to an entirely different item.
- Contacting another member and directing them to buy or sell an item listed on Lift Bridge Furniture outside of Lift Bridge Furniture’s marketplace.
- Completing a sale of an item, that is derived from a Lift Bridge Furniture design, offline or outside of Lift Bridge Furniture’s marketplace .
3. Receiving Payouts
By selling on Lift Bridge Furniture, you agree to the following terms.
A. Lift Bridge Furniture issues payouts on the first and fifteenth day of each calendar month. The payout date will fall on the next business day (Monday through Friday, excluding bank holidays) if the scheduled payout date falls on a non-business day.
B. All payments are delivered via Paypal to the seller’s Paypal account. A seller must have a Paypal account in order to get paid.
C. If, for any reason, a buyer disputes a purchase charged to their bank account or credit card company, we conduct a thorough investigation. We may require additional information from you, the seller, to resolve a chargeback dispute to determine whether the seller or Lift Bridge Furniture will absorb the liability for the chargeback. If we find that the seller must absorb the liability for the chargeback, the seller must agree to return all payments received from the order back to Lift Bridge Furniture within five calendar days. If you choose to use a credit card or Paypal to return the payment, Lift Bridge Furniture reserves the right to charge the seller an additional 3.5% processing fee to recoup all costs associated with processing the payout return. If the total payment is not returned within five calendar days, you may be subject to penalties such as the suspension of your account privileges and/or termination, and you are not released from your obligation to return the payment by some other means.
D. Suspended or terminated members remain obligated to pay Lift Bridge Furniture for all unpaid fees.
E. All applicable fees are automatically withheld from each payout to the seller’s Paypal account.
F. All funds resulting from a completed transaction will be reflected as a commission in the seller’s Lift Bridge Furniture account. Transactions are considered complete once the payment is approved by Lift Bridge Furniture or our fraud analysis service provider. Any refunds, adjustments, or other amounts paid to buyers in connection with purchases, are also applied and reflected in the order details in the seller’s Lift Bridge Furniture account.
G. Commissions are eligible for deposit into a seller’s Paypal account at the end of any applicable deposit delay, reserve, or hold period as determined by Paypal.
H. Lift Bridge Furniture may earn interest or other compensation from the balances in our bank accounts that result from the timing difference between our being paid by buyers and our bank account being debited to pay commissions to sellers.
4. Holds and Delays
In some cases, deposits to sellers’ Paypal accounts could be temporarily delayed by an issue at Lift Bridge Furniture, at Lift Bridge Furniture’s third-party service providers, or at a seller’s bank or Paypal account. We’ll do our best to communicate with the affected sellers as soon as we can.
If we believe that a seller’s actions may result in buyer disputes, chargebacks, or other claims, then we may, in our sole discretion, put (1) a hold, (2) a deposit delay, or (3) a reserve on the seller’s Lift Bridge Furniture account balance.
A hold may be put on funds associated with a particular transaction if there is a dispute or investigation related to the order, for the shorter of: (a) 180 days after the estimated delivery date; or (b) completion of any investigation regarding the seller’s actions.
Deposit delays are defined as the number of days between a sale and the day the net amount from the sale becomes available for deposit, provided the payment has been completed. A deposit delay may be between 0 and 180 days. A deposit delay is applied across all transactions for a seller and the number of days is reflected in each seller’s Lift Bridge Furniture account.
A reserve is defined as a fixed percentage of a seller’s commission balance delayed prior to being included as part of a seller’s available commission balance for a period of up to 180 days.
If Lift Bridge Furniture places a hold, a deposit delay or a reserve on a seller’s account, we’ll do our best to communicate with the affected seller as soon as we can.
We always work hard to avoid and minimize any delays. However, please note that Lift Bridge Furniture is not obligated to refund any fees or reimburse any expenses due to holds or delayed deposits.
If Lift Bridge Furniture cannot settle funds into a seller’s Paypal account, the funds will remain in the seller’s Lift Bridge Furniture account. It is the seller’s sole responsibility to update his or her Paypal account information to receive the funds. If a seller fails to update the information to claim the funds within a certain period of time, Lift Bridge Furniture will escheat the funds to the relevant government authority in order to comply with escheatment laws.
B. We may obtain reimbursement of any amounts owed by a seller to Lift Bridge Furniture by deducting from future payments owed to the seller, reversing any credits to the seller’s commission balance, charging the seller’s credit card, charging the seller’s bill, or seeking reimbursement from the seller by any other lawful means, including by using third-party collections services. You authorize us to use any or all of the foregoing methods to seek reimbursement.
You are responsible for collecting and paying any taxes associated with using and making sales through Lift Bridge Furniture’s services.
If you sell physical goods on Lift Bridge Furniture and reside in the US or Canada, you have the option of either including applicable taxes in your listing prices, or excluding applicable taxes from your listing prices and then using our sales tax tool to calculate the tax owed on each sale. To use our sales tax tool to calculate the sales tax, you must assign the appropriate tax class to the product when you configure the product in your store.
If you sell physical goods on Lift Bridge Furniture and reside outside of the US and Canada, you need to include all applicable taxes in your listing prices.
Lift Bridge Furniture will issue 1099-K forms to certain sellers in the United States to comply with IRS requirements.
If you are operating outside the US and Canada, you might need to include VAT (value added tax) in your pricing. You are responsible for collecting and paying the appropriate VAT tax.
Please remember that Lift Bridge Furniture’s fees do not include any withholding taxes that might apply in your home country. You are required to pay Lift Bridge Furniture the full amount of our fees and may not deduct any applicable withholding taxes from that amount. Please also note that some countries require Lift Bridge Furniture to charge VAT on certain of the fees that you may be charged in accordance with this policy, and that the fees listed in this policy do not include that VAT.
While Lift Bridge Furniture provides a means to apply taxes to your transactions, we do not warrant that these tax amounts will fully satisfy your sales and use tax reporting obligations. For a final determination on these matters, please seek assistance from your tax advisor.
8. Reporting Obligations
Internal Revenue Service regulations require that we file a Form 1099-K to report unadjusted annual gross sales information for sellers located in the United States or being paid in USD that meet both of the following thresholds in a calendar year (reporting):
A. More than $20,000 USD in gross sales, and
B. More than 200 transactions.
To comply with these regulations, sellers who approach 150 (one hundred and fifty) transactions in a calendar year, regardless of sales volume and aggregated across his or her Lift Bridge Furniture shop, will be required to provide taxpayer-identification information to Lift Bridge Furniture.
Upon termination, any non-disputed available balance will be deposited into a seller’s bank account. Lift Bridge Furniture reserves the right, upon termination of access to the maker account, to set off against any payments to be made to the seller, an amount determined by us to be adequate to cover any anticipated chargebacks, refunds, adjustments or other amounts that might be paid to buyers in connection with purchases from the seller’s maker account for a prospective 180-day period. At the end of the 180-day period following termination, we will disburse to the seller any amount not used to offset chargebacks, refunds, adjustments, or such other amounts paid to buyers, or seek reimbursement from the seller via any of the means authorized in this policy for any additional amount required to offset chargebacks, refunds, adjustments, or other amounts paid to buyers, as applicable.