Why do we take advance commission sales ?
Others are delaying payments to artists/labels or make them pay a subscription or fee for their services. We're not. But we have to take advance commission on sales for 3 simple economical reasons:
1. As the process implies direct payment from the customer to the artist/label, we can't ask the customer to pay the NeoMusicStore commission besides the artist/label due amount. That would make the purchase process too complicated and there would be less sales. So the customer is simply paying the artist the full price of the items bought.
2. If we had to take a commission for every sale, we should initiate a second transaction for a little amount between us and the artist (as we can't to the end customer). Transactions below 75 cents are simply not accepted by our bank, so we would have to ask a 75 cents commission at least to the artist/label, even if only 1 item is sold. You can understand we can't ask for that.
3. The commission on sales is dependent of the cost for us to process a transaction. If we have a transaction on every order, we will have many transactions, and many bank/paypal commissions to pay. If we group them, we can reduce the cost per transaction and then the commission on sales for artists/labels