As a Seller, you wish to use the FabricBear Services to facilitate your marketing and sale of your Products and to facilitate the manufacture of your physical Products by third-party Fulfillers once an order has been made through the Marketplace, and the subsequent third-party delivery of your Products to your Customer. FabricBear will provide the Services on the terms set out in this Services Agreement (“Services Agreement”).
1. FabricBear Service
1.1 FabricBear, acting as independent contractor under your instructions in relation to the performance of the Service, will facilitate marketing to and obtaining of orders from Customers for the purchase of your Products over the Marketplace and on instruction from you, arrange for third parties to fulfill those orders by facilitating payment for and manufacture of your Products, and arrange for the delivery of your Products by third-parties as per the Customer’s instructions. Whilst FabricBear’s capacity is one of independent contractor in relation to the Services, you are the principal in relation to the sales transaction between you and the Customer who buys your Product.
1.2 FabricBear will provide the Services pursuant to this Services Agreement until termination in accordance with its terms.
1.3 You agree that FabricBear is free to act in any capacity for any other person interested in promoting, marketing and obtaining orders from members of the public for the purchase of their Products over the Marketplace, including any Products that are the same as, or similar to, your Products.
2. License and Standing Instructions
2.1 You hereby grant FabricBear the rights and license set forth in the Agreement for the purpose of enabling us to carry out the Services.
2.2 You hereby instruct FabricBear to facilitate the sale of your Product(s), which includes facilitating payment processing and arranging for manufacturing of your Product, in respect of the orders placed by the Customers via the Marketplace, and FabricBear will facilitate such payment and manufacturing in accordance with reasonable business practices unless you otherwise instruct prior to the placement of that order by a Customer.
3. Sale of your Products
3.1 The retail price charged to Customers who purchase your Product is made up of the manufacturing fee charged by the third-party manufacturer, FabricBear’s fee for hosting the Marketplace and facilitating the transaction (the manufacturing fee and FabricBear’s fee are referred to collectively, and inclusive of tax, as the “Base Amount”), your creator margin (“your Margin”), and any relevant sales tax (such as sales tax, GST, VAT, etc) that FabricBear and/or you (as the case may be) are liable to account for to the appropriate tax authorities. The total amount may be affected by Marketplace discounts and shipping charges that are added to the retail price. When making each individual Product available for sale, you are able to select any percentage mark-up you wish, greater than or equal to zero, above the Base Amount but below the automated upper limit (subject to change from time to time). The percentage mark-up selected by you on the Marketplace for each of your Products is used to calculate the currency value of your Margin for each sale.
3.2 You may change the percentage mark-up on top of the Base Amount at any time by changing your selection on the Marketplace. The Base Amount may change at any time with or without notice, which may affect the dollar value of your margin, which you set as a percentage of the Base Amount. The retail price will not change on an individual sale after a Customer has submitted an order to the Marketplace.
3.3 You will receive an automatically generated email at the email address you registered in your account to notify you when an order has been placed for your Product(s).
3.4 You agree that FabricBear makes no representation that it will be able to facilitate an order for your Products, whether at the retail price or at all, nor that you will obtain any benefit by entering into this Services Agreement.
3.5 All Products purchased from the Marketplace are manufactured by third-party Fulfillers in accordance with your design instructions and pursuant to arrangements with the third-party Fulfillers. This means that title and risk of loss for such items pass from you to the purchasing Customer without passing through FabricBear prior to the goods being delivered to the Customer under the Customer’s instructions.
4. Payment Terms
4.1 You authorize FabricBear to collect, hold and distribute the retail price (“Sale Proceeds”) from Customers on the terms set out in this clause 4. A shipping charge will also be charged to the Customer for the shipping of the Product, which will not affect the amount to be distributed to you.
4.2 You authorize FabricBear to deduct the Base Amount (which includes FabricBear’s fee for facilitation services, including tax where applicable) from the Sale Proceeds for your Products before distributing your Margin (which will include tax where applicable).
4.3 We will pay your Margin in accordance with the payment method you select on the Marketplace. This will usually take place between the 15th and 20th days of the month.
4.4 We may set payment amount threshold amounts in relation to a month or other time period and, where the payment amount does not exceed any applicable threshold for the relevant period, your payment may be postponed until the threshold is exceeded.
4.5 It is your responsibility to ensure FabricBear has current details of your postal address, bank account details and other information required by our policies and/or the law. FabricBear will not be liable for any loss suffered by you if you provide us with incorrect details in relation to the payment method or any other information you provide. If you cannot be paid because you have given us incorrect information or your information is out of date, your Margin may be delayed or withheld. If you have not notified FabricBear of any amendment to the payment method details in that time, your Margin proceeds will be forfeited to FabricBear or donated to a charity of our choice, subject to applicable law.
5. Taxation Responsibility
5.1 FabricBear will collect and remit sales taxes (such as sales tax, GST, VAT, etc.) on your behalf where required by applicable federal or state taxation laws or regulations. However, if FabricBear is not required by applicable federal or state taxation laws or regulations to collect and remit sales taxes:
(a) Each party is responsible for their own taxes associated with each transaction and will account for any taxes imposed by governments or governing authorities, and related accounting or audit requirements arising out of, as a result of, incidental to, or in connection with obligations under this Services Agreement. We recommend that you consult with your tax advisor as to the application of taxes for you, as the seller of the merchandise. This may include sales tax, VAT, GST, other transactional taxes and income taxes;
(b) FabricBear will not collect or pay taxes on your behalf as you are the principal in the sale of your product to your Customers. As stated in clause 4.2 of this Services Agreement, the amounts distributed to you will be deemed to be inclusive of any taxes, if applicable. You will at all times be solely responsible for reporting and remitting any tax liabilities arising out of the sale of your Products together with any potential interest or penalties that any tax authority may levy as a result of non-compliance; and
(c) all tax-related reporting responsibilities by you to relevant tax authorities are entirely your responsibility.
6. Indemnity
6.1 Without limitation to your other indemnity obligations in the Agreement, you hereby indemnify and will keep FabricBear indemnified from and against all claims, debts, accounts, expenses, costs, liens, actions and proceedings of any nature whatsoever, whether known or unknown by any person, arising from, incidental to, or by virtue of, the appointment, or any breach or non-performance of your obligations under this Services Agreement or arising out of your willful act, neglect or default in the performance of such obligations.
6.2 Without limitation to other unspecified provisions of this Agreement that survive termination of this Agreement, this Clause 6 will survive the termination of this Services Agreement.
7. Limitation of Liability
7.1 Without limitation to other disclaimers and limitations of liability in the Agreement or this Services Agreement, in no case will FabricBear be liable for any consequential loss or damage suffered by you arising from this Services Agreement. To the extent permitted by law, all warranties and conditions implied by law are hereby expressly excluded.
8. Terminating the Services Agreement
8.1 You can give notice of termination of this Services Agreement by closing your account in the method described in the Agreement.
8.2 FabricBear may give notice of termination of this Services Agreement to you by closing your account or in writing at any time.
8.3 After notice of termination in the manner described in either clause 8.1 or 8.2, you authorize the completion of any transactions in progress in relation to your Products, on the terms of this Services Agreement. Termination of this Services Agreement will take effect once these transactions have been completed.
8.4 Upon termination of this Services Agreement by either party, you will be paid any accrued Margin proceeds from your account, less a US$5 administration fee, subject to the Section “Indemnity” in the Agreement, Clause 6 (Indemnity) of this Services Agreement, and applicable law.