Distribution Option

Introduction

This provides a full-service solution where Kudos can handle all aspects of your Bandcamp store. We will deliver the data you enter on our portal to your Bandcamp profile to create digital and physical (“Merch”) products complete with artwork, release metadata and audio.

In order for your Bandcamp sales to be accounted by Kudos, payments from your Bandcamp sales will be made to our designated Paypal account. Kudos will be responsible for processing all customer service functions (returns/refunds).  Kudos will receive and dispatch all orders.  Your Bandcamp shipping rates will be set to cover our postage and packing costs for dispatch from the UK.  Your product prices will be set to your elected retail price, net of UK VAT (e.g. a retail price of £12 becomes £10+vat).  Kudos will arrange for your account to be opted-in to Bandcamp’s Enhanced Payments system so that VAT for both UK and overseas sales will be added at the checkout where applicable.  Your Bandcamp sales revenue will be reported to you at the end of each month as part of your standard distribution accounting.

For each sale you will receive the purchase price, less Bandcamp’s platform fee and Paypal payment charges.  Kudos will bear the cost of Bandcamp’s payout charge which applies to the Enhanced Payment system.  The applicable discount (“distribution fee”) as defined by your Kudos distribution agreement will apply.  All shipping costs are handled by Kudos and any deductions are automatically prorated across the cart, so your accounting is simplified to a single line representing the net value of the sale.


Example 1

A customer purchases 1 x CD with a retail price of £12.99

Bandcamp Sale Price (net of VAT): £10.83
Bandcamp Platform Fee @ 10%: (£1.08)
Paypal Fee*:  (£0.70)
Effective Wholesale Total: £9.05

Kudos Discount @ 28%: (£2.53)
Payable to Label: £6.52 [+VAT @ 20% if label is VAT registered]

Example 2

A customer purchases 1 x Digital Album @ £8 (Bandcamp charges and retains VAT)

Bandcamp Sale Price (net of VAT):  £8.00
Bandcamp Platform Fee** @ 15%: (£1.20)
Paypal Fee*: (£0.43)
Effective Wholesale Price: £6.37

Kudos Discount @ 20%: (£1.27)
Payable to Label: £5.10 [+VAT @ 20% if label is VAT registered]

*Paypal fees are calculated on the total payment value and so they are affected by the cost of shipping and taxes added at the checkout.  Different rates may also apply depending on the payment method used etc. This cost will be spread across all items in the order so the actual deduction in each case will vary depending on all of these factors.

**Bandcamp’s standard platform fee for digital sales is 15% but this is reduced to 10% if/when their high-volume thresholds are met.


Benefits

  • Kudos will set up your digital & physical products for you.
  • Kudos can handle customer service issues, returns and refunds etc.
  • Custom header image pulled from Bandcamp page on dispatch notes included with fulfilled physical orders.
  • No risk of postage and packaging costs eating into profit (or even exceeding your total earnings and producing a debt on your account).
  • Stock levels displayed on Bandcamp are synced with the amount available in the warehouse.
  • Greatly simplified VAT and artist accounting.
  • Bandcamp Kud.li link available for automatic short URL linking
  • Fulfilment cost is proportional to revenue (based on your distribution %) and will be lower in most cases than static order and unit charges.

Considerations

  • Shipping costs must adhere to Kudos rates.
  • Kudos will receive a % of your Bandcamp digital sales.
  • Your Bandcamp store must have the location set to United Kingdom and currency set to GBP regardless of your home territory/currency.
  • This is the only option available to labels that are not based on the United Kingdom (due to VAT regulations) and/or who manufacture using a Kudos P&D arrangement.
Last updated bykudos
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