Fees & Payments Policy

Sellers may be charged for using some of Food Prepped’s services. This Fees & Payments Policy specifies your fees and taxes and how to pay them.

This Fees & Payments Policy is a part of our Terms of Use. By opening a Food Prepped shop, you’re agreeing to this Fees & Payments Policy and our Terms of Use.

1. Types of Fees

Sellers may need to pay the following types of fees. Please note that all fees are itemised exclusively of any VAT (value-added tax) or similar taxes that may pertain. See the Taxes section below for further details. It’s essential to understand that all service fees, including prepaid fees, are non-refundable.

Listing Fees

You will be charged a listing fee of 0.20 GBP for each item that you list for sale on Food Prepped.com or Food Prepped’s mobile apps. You will only be billed a listing fee for producing or renewing a listing on Food Prepped; there is no fee for editing a listing. A listing fee will be charged to you if the listed item sells or not. If you have made a private listing, you will only be charged the listing fee once the private listing is sold. Food Prepped.com listings expire after four months. If you list multiple quantities of the same item, the initial listing fee will be 0.20 GBP, and the listing will be automatically renewed at 0.20 GBP after each of the items sells. In this Help article you can find information about fees for multiple listings. Listing fees are mirrored in your payment account and subtracted the moment the listing is advertised or renewed.

Auto-renew

Unless you decide otherwise, Food Prepped will automatically renew your listings at the end of the four-month listing period via the automatic renewals feature. You have the option to use automatic renewals for a specific listing or for your shop. You will be charged the listing fee of 0.20 GBP for each of these listings until you cancel automatic renewals. You can see the status of an automatic listing in your Listings Manager. You may withdraw at any instance from automatic renewals simply by choosing “Manual” instead of “Automatic” in the “Renewal Options” in the Listings Manager. Once you withdraw, you will only be billed for the current listing period.

Transaction Fees

When you make a sale through Food Prepped.com, you will be charged a transaction fee of 6.5% of the price you display for each listing plus the amount you charge for delivery and gift wrapping. If you are a Food Prepped Payments user and you list your items in a currency other than your payment account currency, see the Currency Conversion section below for more details on the transaction fee. If you sell from the UK the transaction fee will correlate to the listing price (which should include any applicable taxes that you as a seller are responsible for), postage price, and gift-wrapping fee. If you promote an optional personalisation service for an additional charge, the extra fee for personalisation is added to the listing price you display, and the total display price is subject to the same transaction fees defined in this Section. See the Taxes section below for more information about whether you are required to include applicable taxes in your listing prices. Transaction fees are subtracted from your present balance as each sale occurs and are mirrored in your payment account.

Advertising and Promotional Fees

Food Prepped offers multiple services to help you advertise your listings and promote your shop, including Food Prepped Ads and Offsite Ads. If you use Food Prepped Ads, you select your daily maximum budget, as set forth in more detail below. For Offsite Ads, fees are only charged if Food Prepped’s promoting of your listing directly results in a sale, as explained in more detail below. For more information, please see the Advertising and Marketing Policy.

Food Prepped Ads Fees

If you purchase paid advertising on Food Prepped through the Advertising Dashboard in Shop Manager, you can set a budget to limit the amount you’re willing to pay for Food Prepped Ads to promote your listings or shops on Food Prepped. Your daily upper limit budget can be set at or beyond a pre-set minimum set by Food Prepped, and you will not be billed more than your maximum budget daily. All bids are made in British Pound Sterling (GBP). Food Prepped Ads fees may be charged on a periodic basis and are subtracted from your current balance and reflected in your payment account. To learn more, please visit the Advertising and Marketing Policy.

Offsite Ads Fees

Food Prepped purchases offsite advertising from a network of participating partners, such as social networks and search engines. If such advertising incorporates your listing, a buyer clicks on it, and then places any orders from your shop within 30 days of that click, you will be charged an advertising fee on these orders (which we’ll refer to collectively as “Attributed Orders” and independently as an “Attributed Order”).

The Offsite Ads fee you are billed for Attributed Orders is contingent on your shop’s sales statistics over the previous 365 days, as follows:

The standard fee you will pay is 15% on Attributed Orders, unless the 12% fee applies as described below.

If your shop has made less than 10,000 GBP in sales over the prior 365 days (from launch date in 2023 and later), as calculated on the first day of the month, you will pay a fee of 15% (as described in the section below) on Attributed Orders, unless you opt out of participation in Offsite Ads for the duration your shop is under the 10,000 GBP threshold. The 15% fee and opt-out apply until or unless you at any time meet the 10,000 GBP threshold.

If at any time your shop has made sales of 10,000 GBP or more over the prior 365 days (from launch date in 2023 and later), as calculated on the first day of the month, you will subsequently pay a fee of 12% (as described in the section below) on Attributed Orders, as of the beginning of the programme if you immediately qualify, and otherwise on the first day of the month following qualification. If you subsequently fall below the 10,000 GBP threshold later, you will still only be charged a 12% advertising fee for the lifetime of your shop. If you opted out of participation in Offsite Ads prior to meeting the 10,000 GBP threshold, you will be required to participate and will be charged a 12% advertising fee on Attributed Orders for the lifetime of your shop upon reaching the 10,000 GBP threshold. The prior opts out while under the 10,000 GBP threshold will no longer apply (even if you subsequently fall below the 10,000 GBP threshold later) to the extent permitted by law.

Beginning a month after initial calculations when the programme starts, Food Prepped will perform subsequent calculations on the first day of each calendar month and will give you notice if you have crossed the 10,000 GBP threshold.

For calculating this 10,000 GBP threshold, sales are calculated by multiplying item price by quantity (minus any discounts or formally cancelled orders), but excluding In Person Payment orders, Food Prepped fees, or separately charged postage, taxes, or gift wrap. For sellers with shop currencies other than GBP, the 10,000 GBP threshold is calculated with the currency exchange rates used by Food Prepped at the time that the relevant sales were processed. Exchange rates used are variable and are provided by a third-party financial services company. For information on how the 10,000 GBP threshold is calculated, please see the next section and the Advertising and Marketing Policy.

How Offsite Ads fees are calculated:

Offsite Ads fees pertain to Attributed Orders and are billed as a percentage of the total order amount, which comprises the price you display for each listing plus the amount you charge for postage and gift wrapping and, in some authorities, taxes, as set forth below. The applicable percentage charge, either 12% or 15%, is determined as described above.

See the Currency Conversion section below for more details on Offsite Ads fees and listing your Ads in different currencies to your Payment Account currency. Offsite Ads fees will apply to any appropriate taxes that are combined in your listing prices. If you promote an optional personalisation service for an additional charge, the extra fee for personalisation is added to the listing price you display, and the total display price is subject to the same Offsite Ads fees defined in this Section. There is no limit to the number of Offsite Ads fees you may be charged on Attributed Orders, but the total Offsite Ads fee you’ll pay on a single Attributed Order will not exceed 100 GBP. Offsite Ads Fees are subtracted from your current balance and are revealed in your payment account.

Subscription Fees

Food Prepped sellers in good standing may opt-in to Food Prepped Plus, a subscription package offering an expanded set of tools for growing brands. The fee for a Food Prepped Plus subscription is 10 GBP per month. Food Prepped Plus subscription fees are deducted from your current balance each month and reflected in your payment account. Where applicable, Food Prepped may charge local taxes (e.g., sales taxes or VAT/GST) on your monthly subscription fee.

Auto-renew. Subscription fees will be added to your payment account in your domestic currency on a regular day every month. For instance, if you sign up on 15th May, your subscriptions fees will be added on 15th August 15th September, and so on. If you sign up on the 31^st of any month, your subscription fees will be charged to your payment account on the last day of the month. For instance, if you sign up on 31st October, your subscription fees will be added on 30th November because that is the last day of the month. You can cancel your Food Prepped Plus subscription anytime by visiting the Your Subscription section of your Shop Manager’s Settings. You will have until the end of that subscription cycle to access to your Food Prepped Plus subscription. Your final day of access will be displayed in the Your Subscription dashboard. Once your Food Prepped Plus subscription has concluded, your shop will revert to Food Prepped Standard, and the subscription fee will no longer be added to your payment account.

Under subscription of Food Prepped Plus, you are provided with the following credits each subscription cycle:

15 listing credits, which are visible as 3 GBP in listings credit in your payment account
5 GBP in Food Prepped Ads credits, which are visible in your payment account and on your advertising management page

You must use the credits during the subscription phase, otherwise they expire. Credits will not roll over month to month. They will be made cancelled, made void, and then replenished at the beginning of each subscription phase.

Face-to-Face Selling Fees

You can use the Square reader to process payments for Face-to-Face sales. You have the option to sync your Food Prepped listings with Square. If you choose to synchronise your listings with Square, listings with multiple quantities will incur the same 0.20 GBP renewal fee as listings with multiple quantities on Food Prepped. Non-synchronised listings will incur a 0.20 GBP transaction fee, which will appear on your payment account as a “Square manual” fee. Face to Face selling fees are deducted from your current balance and reflected in your payment account. For information on Face-to-Face selling fees, view this Help article.

Face to Face sales administered through the Square reader will not be subject to Food Prepped’s 6.5% transaction fee or any Food Prepped payment processing fees, but will be subject to Square’s Payment Processing Fees.

Payment Processing Fees

Online Sales. Eligible Food Prepped shops may use Food Prepped Payments to accept certain payments through Food Prepped (learn more about Food Prepped Payments below). Payment processing fees are charged for each transaction made through Food Prepped Payments. Payment processing fees fluctuate based on the whereabouts of your bank account. In specific markets, a fixed deposit fee may be charged for the allocation of seller funds that are under specific designated thresholds. See the Food Prepped Payments Policy to find payment processing fees and where applicable, deposit fees, by nation. The payment processing fee is evaluated on the total amount of the sale, plus tax and postage. Payment processing fees are subtracted from the sale total in your payment account. Deposit fees are subtracted from your Available Funds and displayed in your payment account at the time of your arranged deposit.

Delivery Fees

Food Prepped offers sellers in certain locations the ability to purchase postage labels to fulfil their orders. The cost of the postage label will depend on the delivery company, and the origin, destination, weight, and dimensions of the package. If you add signature authorisation or insurance, those fees will be added to the overall cost of the label at the moment of purchase. Sellers who purchase postage labels can also purchase package insurance through approved insurance couriers. You must accept Food Prepped Payments or PayPal as payment methods to purchase postage labels through Food Prepped. Postage fees and any modifications are revealed in your payment account and deducted from your current balance.

For more information, please see the Delivery Policy.

Regulatory Operating Fees

Sellers in specific nations will be subject to a Regulatory Operating fee on each transaction. A Regulatory Operating fee is a predetermined percentage of the quantity you display for each of your listing plus the fee you charge for postage (together with gift wrapping and personalisation, if appropriate) and is billed, where appropriate, in addition to other fees defined in this Fees & Payments Policy. Regulatory Operating fees may vary per nation and are charged because of the increased cost of operating in the relevant nation, for example, because of additional costs of conformity with appropriate regulation(s). You can find the nations in which Regulatory Operating fees apply as well as the specific percentage fees for each nation in this help article.

Currency Conversion

Except for the transaction fee, Offsite Ads fees, the Payment Processing fee, Regulatory Operating fees, and deposit fees, Food Prepped converts fees from GBP to your payment account currency at the market rate at the time the fee is reflected in your payment account. All fees emerge in your payment account in your domestic currency.

Transaction fees, Offsite Ads fees, Regulatory Operating fees: If the items you have listed are in a different currency to your payment account, the transaction fee and, where appropriate, the Offsite Ads fee and Regulatory Operating fee will be transformed to your payment account currency at the marketplace rate and made visible in your payment account.

To avoid acquiring foreign exchange charges on your sales, Food Prepped recommends you list your items in the same currency as your payment account currency. Buyers see the items in the currency of their choice. As a Food Prepped Payments user, if you decide to list in a currency other than that of your payment account, you will be charged a 2.5% currency conversion fee on the sale amount to send funds to your payment account. Learn more about currency conversion here. Currency conversion is handled automatically by our payment processing service and further described in our Food Prepped Payments Policy.

2. Fee Avoidance

Any action by a seller to elude paying a fee is considered fee avoidance and is strictly forbade by Food Prepped. This includes, for example, encouraging buyers to purchase an item in your Food Prepped shop through another venue. A transaction initiated on Food Prepped may not be completed away from Food Prepped. The price stated in each listing description must be an accurate depiction of the sale. Sellers may not modify the item’s price following a sale for the purpose of avoiding Food Prepped transaction fees, falsify the item’s location, or use another user’s account without permission.

3. Paying your Food Prepped Fees

Food Prepped will automatically deduct all fees owed from your payment account. Given you have sufficient funds in your payment account no further payment activity is needed. If your payment account does not contain sufficient funds you are responsible for paying any fees owed in full within 15 days of the date of your monthly statement, or the account will be considered past due, and Food Prepped may charge your card on file or take other actions to collect funds as laid out in the Recoupment section of Food Prepped’s Payments Policy. If you make a sale during which you have a residual balance the net sale amount will be applied to your outstanding balance. You may pay your outstanding balance manually by credit card, debit card, or PayPal.

Your statement is available in your payment account at the beginning of each month and will detail all sales and fees activity from the preceding month. This Help article explains more about paying your outstanding balance.

Food Prepped may suspend your selling privileges at any time pending payment of your outstanding balance.

4. Food Prepped Payments

Food Prepped Payments enables sellers to accept various forms of payment in their local currencies while using Food Prepped’s services. Sellers registered for Food Prepped Payments accept payment from buyers by major credit or debit cards accepted by Food Prepped, Food Prepped Gift Cards, Food Prepped Credits and Food Prepped Coupons (subject to applicable limitations, see Food Prepped Gift Cards, Credits & Coupons Policy), by certain bank transfer services, through PayPal (where available), Apple Pay, Google Pay, and through Klarna (where available).

You can register for Food Prepped Payments in Account Settings. Sellers using Food Prepped Payments are also subject to the Food Prepped Payments Policy.

5. Taxes

Apart from the limited conditions set out below, you are responsible for collecting and paying any taxes associated with using and making sales through Food Prepped’s services.

For purposes of these Terms of Use, please understand that although some nations may refer to VAT using other terms, we will refer to any local sales taxes collectively as “VAT” unless the perspective necessitates otherwise.

A. Listing your items on Food Prepped

The sales tax settings in Shop Manager are used for including relevant taxes in your listing prices as you may need to incorporate applicable taxes in your listing prices. You can learn more in this Help article about how taxes are organized and transmitted to buyers in different authorities.

Where Food Prepped is obliged to accumulate sales tax/VAT on your behalf, Food Prepped will use the category you assigned to each listing to determine, collect, and settle the applicable taxes. You are exclusively responsible for ensuring that all your listings are correctly categorised, and you agree to compensate Food Prepped for any losses it incurs in relation with any mis-categorisation of your listings by you.

Please remember that Food Prepped’s fees do not include any withholding taxes that might apply in your home nation. You are required to pay Food Prepped the full amount of our fees and may not deduct any applicable withholding taxes from that amount.

In certain authorities, where necessary to abide by applicable laws, Food Prepped may withhold taxes from payments made to you or on your transactions made through Food Prepped.com.

B. Taxes on Seller Services

UK Sales Tax on Subscription Fees

Where applicable, state sales tax will be applied to the Food Prepped Plus subscription fee charged by Food Prepped.

VAT on Seller Fees

Subject to your business status and location, Food Prepped may be required to employ VAT on seller fees charged each month and pay it to the appropriate tax authority. VAT is collected on all Food Prepped fees for sellers located in countries where VAT should be applied. Comprehend that fees stated in this Fees & Payments Policy are exclusive of VAT. To learn more about how VAT works on Food Prepped, see this Help article.

C. Taxes We Collect and Remit from Buyers

United Kingdom Sales Tax

As appropriate, Food Prepped will collect the sales tax sum from the buyer and pay this to the significant tax authority. If the sale was achieved through Food Prepped Payments, the sales tax quantity will appear in your payment account and is subtracted from your present balance.

Food Prepped will use the category you allocated to each listing to determine, collect, and pay the applicable sales tax based on the buyer’s location in the UK.

Taxes Collected and Remitted from UK buyers

Collection of VAT on Physical Goods: Learn more about Other Taxes we Collect and Pay from buyers in the UK here.

6. Other Governmental Fees, Charges and Levies

Some authorities may need Food Prepped to gather other fees, charges, or levies (e.g., environmental fees) from buyers and to remit those amounts to the appropriate governmental authorities. Where Food Prepped is required by law to save such amounts, they will be billed to buyers at checkout.

7. Marketplace Reporting of Seller Information

Where legally required, Food Prepped will report your personal details and details of your transactions to relevant governmental authorities.

Food Prepped will not disclose any personal information to any third parties unless legally required to do so.

8. Food Prepped Gift Cards, Credits & Coupons

If you are registered to use Food Prepped Payments, you may accept payment by Food Prepped Gift Cards, Food Prepped Credits, and Food Prepped Coupons. Food Prepped Gift Cards, Food Prepped Credits, and Food Prepped Coupons are subject to the Food Prepped Gift Cards, Credits & Coupons Policy. Food Prepped also charges the Food Prepped Payments payment processing fee defined above on Food Prepped Gift Card, Food Prepped Credit, and Food Prepped Coupon transactions.

Last updated on 04 Dec 2023