Distribution Option

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 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 net of VAT, less Bandcamp’s fee. Paypal payment charges will be deducted from digital sales but Kudos will bear the cost of Paypal’s charges on physical sales. This amount is then subject to the applicable discount (“distribution fee”) as defined by your Kudos distribution agreement. As all shipping costs are handled by Kudos and any deductions are automatically prorated across the cart, your accounting is simplified to a single line representing the net value of the sale.

Example 1: A customer purchases 1 x CD @ £10:

Retail Price Net of VAT: £8.33 [physical retail prices will be inclusive of VAT @ 20%]

Bandcamp’s Fee @ 10%: (£1.00)

Effective Wholesale Total: £7.33

Kudos Fee @ 28%: (£2.05)

Payable to Label: £5.28 [+VAT @ 20% if label is VAT registered]

Note: As Kudos handles p&p charges/costs and absorbs Paypal fees the total payable will be unaffected by payment methods, shipping location or quantity purchased.

Example 2: A customer purchases 1 x Digital Album @ £8

Item Price Net of VAT: £8.00 [Bandcamp charge and retain any applicable VAT]

Bandcamp’s Fee @ 15%: (£1.20)

Paypal Charges: (£0.43)

Effective Wholesale Price*: £6.37

Kudos Fee @ 20%: (£1.27)

Payable to Label: £5.10 [+VAT @ 20% if label is VAT registered]

* Effective Wholesale Price may vary because Bandcamp’s digital fee is dependent on sales volume and Paypal charges are affected by customer’s payment method.

Pros:

  • 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.
  • 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.

Cons

  • 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.
Last updated bykudos
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