The announcement was first made in a tweet from Gumroad founder Sahil Lavingia. This was followed up by an email to all Gumroad users. Not surprisingly, reaction to the increase has been quite negative.
Gumroad will now have a flat 10% fee for all users no matter how much they sell. This 10% is on top of Stripe and PayPal processing fees which Gumroad will now pass on to sellers.
This replaces Gumroad's previous fee structure which saw users pay a lower fee depending on their lifetime sales volume:
Gumroad's new fees will see some top sellers paying triple what they used to.
In a followup tweet, Sahil explained that monthly net income under the previous fee structure was too low. During tough economic times, Gumroad needs more income to grow.
One of Gumroad's key features is that is acts a merchant of record. This means sales you make through Gumroad actually have Gumroad listed as the seller on your behalf. This is important in the UK, EU and some US states where sales tax must be collected and remitted locally for digital product sales. Gumroad handles this for sellers.
Gumroad also has a developed platform that makes it easy for people to list and sell products without creating their own infastructure. This includes a Zapier integration helping people automate their sales efforts.
Some popular alternatives that also act as merchant-of-record include: