Seller Policy
Last updated: August 16, 2026
Plain-English Summary
Everything you need to know about selling on Scrappy Exchange — from listing requirements to fees, shipping expectations, payouts, and what happens if something goes wrong.
This Seller Policy explains the rules and responsibilities for selling on Scrappy Exchange. By listing items or services, you agree to comply with this policy, our Terms of Use, Acceptable Use Policy, and all applicable laws.
Introduction
This Seller Policy explains the rules and responsibilities for selling on Scrappy Exchange. By listing items or services, you agree to comply with this policy, our Terms of Use, Acceptable Use Policy, and all applicable laws.
1. Who Can Sell
Anyone with a Scrappy Exchange account in good standing may list items for sale. Sellers under 18 must have a parent or legal guardian as the responsible account holder, or participate through an approved Young Creator profile under guardian oversight. By selling on Scrappy Exchange, you represent that you are legally permitted to operate a business and comply with all applicable federal, state, and local regulations, including tax obligations. Opening a shop is free; platform fees apply per completed sale.
2. Seller Responsibilities
As a seller, you agree to: • Provide accurate, complete, and lawful listings • Maintain sufficient inventory • Ship orders on time • Respond to buyer messages promptly • Handle taxes, permits, and business compliance • Use buyer information only for order fulfillment • Resolve disputes in good faith Sellers are independent businesses, not employees or agents of Scrappy Exchange.
3. Listing Requirements
All listings must: • Accurately describe the item or service (condition, size, materials, functionality) • Include clear, honest photos that represent the actual item • Set a price in USD • Disclose defects, wear, or variations • Comply with our Acceptable Use Policy • Not infringe on any intellectual property rights Scrappy Exchange may remove or modify listings that violate these rules.
4. Prohibited Items & Activities
Sellers may not list: • Illegal items • Counterfeit or trademark-infringing goods • Stolen property • Hazardous materials • Recalled items • Weapons or dangerous tools • Adult content • Items violating copyright (patterns, digital files, artwork without rights) A full list is available in our Acceptable Use Policy.
5. Fees
Scrappy Exchange charges a seller transaction fee and a listing fee on each completed sale. Fees are based on your membership tier: • Standard — 5% transaction fee + $0.30 listing fee • Scrappy Plus — 4% transaction fee + $0.28 listing fee • Scrappy Pro — 3% transaction fee + $0.25 listing fee • Scrappy Impact — 2% transaction fee + $0.20 listing fee Listing fees are assessed when your item sells, not when you create the listing. Fees are deducted automatically from your payout. Full details are in our Fees & Payments Policy. Sellers are responsible for chargebacks resulting from non-shipment or misrepresentation.
6. Shipping Responsibilities
Sellers must: • Ship items within the timeframe stated in the listing (default: 5 business days) • Use appropriate packaging to prevent damage • Provide tracking information when available • Ship to the address provided by the buyer • Communicate promptly if delays occur Scrappy Exchange integrates with Shippo for shipping label generation, rate calculation, and tracking. Sellers may purchase labels through the platform or use their own shipping method. If a seller fails to ship within the required timeframe, Scrappy Exchange may cancel the order and issue a refund to the buyer. Lost or Damaged Shipments: • If tracking shows non-delivery, the seller must refund or replace the item • If an item arrives damaged due to inadequate packaging, the seller is responsible for the refund
7. Returns, Refunds & Disputes
Sellers may set their own buyer-remorse return policies; however, seller-specific return policies do not override Scrappy protections for items not delivered, damaged, incorrect, unauthorized, or materially different, or applicable law. The resolution workflow is: 1. Buyer contacts the seller through the platform 2. Parties attempt resolution 3. Seller may offer a full or partial refund 4. Buyer may request or counter where applicable 5. If unresolved, the issue becomes eligible for a formal dispute 6. Buyer may escalate the dispute to Scrappy for administrator review 7. An administrator reviews and resolves the dispute Parties have 48 hours to respond during negotiation stages. Please allow at least 48 hours for Scrappy to review an escalated dispute. Scrappy Exchange may request evidence (photos, tracking, messages). If the seller does not respond or the evidence supports the buyer, Scrappy Exchange may issue a refund on the seller's behalf. See our Refund & Dispute Policy for full details.
8. Seller Payouts
Seller payouts are processed through Stripe Connect. To receive payouts, sellers must complete Stripe Connect onboarding (identity verification, bank account connection). Payouts are calculated as the item price minus seller transaction fees, listing fees, shipping deductions (where applicable), and refund/transfer reversals (where applicable). Payout timing depends on your Stripe account and bank. See our Fees & Payments Policy for payout details and our Seller Earnings page for your current balance.
9. Digital Products
Sellers may offer digital products with either automatic delivery (ready-made files delivered on payment) or seller-delivered delivery (custom/made-to-order files delivered after purchase). Sellers offering digital products must: • Own the rights to distribute the file • Clearly state usage rights (personal use, commercial use, etc.) • Deliver custom digital files within the stated estimated delivery time See our digital product terms in the Buyer Policy and Intellectual Property Policy.
10. Taxes
Sellers are solely responsible for: • Reporting income • Collecting and remitting sales tax where required • Providing tax information if requested (e.g., for 1099-K reporting) Scrappy Exchange does not provide tax advice.
11. Intellectual Property
Sellers must only list items they have the legal right to sell. This includes: • No unauthorized digital downloads • No copyrighted patterns or artwork without permission • No trademark-infringing items Scrappy Exchange complies with DMCA takedown requests. See our Intellectual Property Policy.
12. Use of Buyer Information
Sellers receive buyer information solely for order fulfillment. You may not: • Add buyers to marketing lists • Share buyer information with third parties • Store buyer data beyond what is necessary for the transaction Violations may result in account suspension.
13. Enforcement & Penalties
Scrappy Exchange may take action for violations, including: • Listing removal • Fee reversal • Account suspension or termination • Withholding payouts • Reporting illegal activity to authorities Scrappy Exchange reserves the right to remove any seller or listing that poses risk to the community.
14. Changes to This Policy
We may update this policy periodically. Continued use of the platform constitutes acceptance of the updated terms.
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