If you are a business owner and need to charge a licence fee for your eCommerce store, you should think twice before you do.
There are a number of reasons for you to consider this.
You can’t charge an eCommerce shop licence fee if the customer has already paid for the item(s) you’re selling.
For example, if you’re a retailer who offers an item for £20 and sell a product for £30, then you can charge a £20 eCommerce licence fee.
You’re not able to charge an additional £30 licence fee once the customer pays for the items.
You could charge an extra £5 if you think the customer will pay for the goods you’ve sold them.
However, this extra charge will have to be paid for by the customer.
If you have a discount option, this charge will be added to the price of the items you sell.
The licence fee can be charged to both your own customers and to the customers of your affiliate, which means you will not be able to get a fee from the customer you’re not affiliated with.
However, if the company you’re licensing for is a third party retailer, you can use this to charge the customer directly.
If the customer is a customer of your parent or sibling, then they will be charged the licence fee of £5 per customer, per month.
If they’re a customer who is affiliated with your parent, sibling or parent’s company, they will have the same fee.
However if you are not a third-party retailer and are licensed by your parent/s/s or sibling’s company to sell the same product, then your license fee will only be charged on the purchase price.
So if the cost of your product is £20, then the customer who paid £20 for the product will have no need to pay any additional licence fee whatsoever.
Your business licence fee should only be used to pay for goods sold to customers who have already paid.
Your licence fee is usually set by your supplier and cannot be changed without the consent of your customers.
If your supplier has not agreed to the change, then it will have a charge of the equivalent of the amount of the licence cost you’ve paid.
This can be difficult if you’ve just opened a store and are planning to sell to a customer.
You might need to contact your supplier to find out whether they will accept a higher licence fee as well.
If you have to pay the licence fees for your customers, you’ll need to ensure they can’t use your store to sell items outside of its premises.
Your store’s licence fee may not be refundable.
You may need to take out a customer credit agreement to allow your customers to use your shop to sell other goods.
This will help ensure your store can’t be used for other purposes.
If a customer’s credit agreement is cancelled, they can cancel the account with the supplier and still have the licence for the store.
If your customers need to use a credit agreement, you might want to contact a credit counsellor to work out whether a higher charge is appropriate for your business.
If the supplier does not agree to the changes, then there’s no licence fee to be charged.
However the supplier may require you to pay some or all of the fees.
You can contact your provider and ask them to arrange a charge for the licence to apply to your customers who haven’t yet paid for any goods they sell to your store.