Detailed Discussion

Selling online can offer artists access to a wider market, and potentially lower overhead costs and pressures compared to selling through bricks-and-mortar galleries and retail spaces. 

Opportunities to sell art, craft and design works online have increased, as have sales of digital artworks and non-fungible tokens (NFTs). The focus of this chapter is physical works. Note that processes and considerations around the sale of digital works and NFTs differ, and will be covered in the Code in due course. 

Online Sales Models

Individual Artist Websites

• mail order, email order and phone order

• integrated e-commerce/marketplace platforms, such as Shopify

Online Retail Platforms 

• social/community marketplace sales platforms such as Facebook Marketplace or Gumtree, which tend not to have integrated payment systems or clear records

• speciality e-commerce/marketplace platforms for art and craft products with integrated payment systems such as Etsy (aimed at craft practitioners), Saatchi Art and Bluethumb (aimed at visual artists) 

Online Gallery Outlets 

• online only (such as ArtPharmacy) 

• online outlets of bricks-and-mortar galleries or stores (such as JamFactory Shop, or any of the national or state and territory galleries' online stores). For more detailed guidance on selling through publicly funded gallery outlets, see Publicly Funded Galleries Selling Work 

Key Issues 

Key issues related to selling online include: 

• delayed payment

• theft of artwork imagery included in online sales listings

• lack of support and insurance against non-payment and delivery issues

• sudden updates to terms of service

• lack of clarity around fees, charges and delivery arrangements. 

While there tends to be limited recourse for artists, recent ‘digital strike’ movements on online platforms, emulating physical union activity, are seeking more equitable outcomes for artists.

It is good practice to give careful consideration to selling online art by First Nations artists, or art that includes or refers to Indigenous objects, knowledge or works. 

Selling online is a great opportunity for First Nations artists and Art Centres to reach wider audiences, particularly when artists are based remotely. Many First Nations artists are also exploring the possibility of NFTs to create digital art or mint existing work. As work achieves greater online exposure, there may be an increased risk that Indigenous Cultural and Intellectual Property (ICIP) is reproduced or adapted without consent.

For more information, see First Nations.

It is recommended that sellers of work by First Nations artists are members of the Indigenous Art Code and uphold its principles.

Arts Law provides a range of resources specifically for First Nations Art Centres and First Nations artists selling their work online.

For more information on engaging and collaborating with First Nations communities see First Nations and Working with First Nations Art Centres.

Legal obligations that apply in this area include consumer laws such as Australian product safety laws, fair trading laws, guidance from the Australian Consumer and Competition Commission (ACCC), Personal Properties Securities Act 2009 and copyright and Intellectual Property law, see Intellectual Property. Taxation law also applies, see Taxation and the Resale Royalty Right for Visual Artists Act 2009, see Resale Royalty.

Online Retail Platforms 

E-commerce and marketplace platforms generally have a low level of responsibility in the process of selling artworks online and often require artists to deliver a work directly to the buyer. Some marketplace platforms with a more ‘trading post’ style may offer a low level of service, and simply allow artists to list and advertise works for sale.

However, more established online selling platforms have a responsibility to:

• meet legal obligations in the areas of taxation (see Taxation), insurance (see Insurance), copyright (see Intellectual Property), consumer law, such as product safety and fair-trading obligations, and workplace health and safety (see Workplace Health and Safety)

• provide a system for secure payments, including credit-card payment processing

• make payment to the artist either after the sale of each work or on an agreed payment cycle

• provide a streamlined system for the delivery of work, such as integrated postage-label purchase 

• provide a platform on which to list and advertise works for sale 

• provide a record of each sale, including purchaser details 

• ensure online platforms are accessible, see Access Rights for d/Deaf and Disabled People

• ensure their platforms provide a safe and inclusive space for artists and users, and are representative of all sections of the community

Online Gallery Outlets

Refer to guidance in Publicly Funded Galleries Selling Work, which also applies to sales of work through commercial gallery online platforms. 

Artists selling their works online have a responsibility to:

• be aware of and meet legal obligations in areas of taxation (see Taxation), insurance (see Insurance) and copyright (see Intellectual Property), consumer law, such as product safety and fair trading obligations, and where appropriate, workplace health and safety (see Workplace Health and Safety)

• ensure they understand the approach taken by their representing gallery, if they have commercial representation, prior to offering a work for sale online, see Commercial Galleries and Representation

• maintain a register of artwork sales

• register their work being sold on the Personal Properties Securities Register

Online Retail Platforms 

Artists selling on e-commerce retail and online marketplace platforms need to self-manage the selling process, from product listing to marketing and fulfilment.

Artists have a responsibility to:

• be aware of all costs and the administrative challenges of running an online sales channel, as failure to do so can result in reputational damage

• set prices for work

• market work for sale

• administer the sales process, including managing stock levels, packaging, and delivery of works 

• insure work for loss or damage during transportation

• be well aware of the terms and conditions of the platform they plan to use, including exclusive rights they may be granting a platform to use their content, as well as any updates to transaction fees, which may have a major impact on profit with limited notice

Online Gallery Outlets

Artists have a responsibility to: 

• ensure a written agreement is in place which clearly sets out the responsibilities of both parties

• set a price for works, in consultation with the gallery

• transport work to place of sale, and collect work when unsold, as agreed

• insure the work for loss or damage during transportation to the gallery 

It is good practice to make a written agreement with the gallery outlet to clearly outline expectations, see Publicly Funded Galleries Selling Work.

Online Retail Platforms 

Agreements between artists and online retail outlets should outline:

• terms of service/use, according to a standard, transparent and accessible (preferably digital) template 

• each party’s responsibilities associated with the sales process

• payment rates

• period of agreement

• buyer policy 

• merchant agreement 

• dispute processes

• seller policies, including fees for listing, transactions and advertising 

• storage of works for sale

• postage and packing 

• insurance 

• consumer protection considerations

• IP considerations including copyright ownership

Online Gallery Outlets

It is good practice for galleries and online art, craft, design and digital art stores to have a clear, transparent and written agreement in place with artists. 

If work is being consigned it is recommended that artists refer to Publicly Funded Galleries Selling Work when considering what should be included in this agreement. This also applies to the sale of work through commercial gallery online platforms. 

Consignment and Commission Rates

Online platforms and outlets set their own rates for each sale which can vary from 10% to 30% of the sale price, and can be higher. E-commerce and marketplace platforms also often charge a variable transaction fee on each sale, and a subscription fee. It is good practice to clearly agree on all fees in writing, or include them in the terms and conditions of sale.

For more information, see Public Galleries Selling Work and Payment Standards.

One of the most important considerations for artists when selling online is taxation, particularly registration for the goods and services tax (GST), and for an Australian Business Numbers (ABN).

For more information, see Taxation.

It is recommended that artists have insurance in place to cover their work’s transport and consider registration of works on the Personal Property Securities Register when selling through gallery outlets. 

For more information, see Insurance.

Artists have a responsibility to ensure their works for sale are compliant with Intellectual Property law and Indigenous Cultural and Intellectual Property (ICIP), see First Nations. If images of works are used to advertise their sale through an online gallery, no licensing fee is paid to the artist by the organisation. 

It is recommended that artists take care to ensure imagery of their work online has a reduced risk of being copied. Strategies include placing a watermark over the image, or using low-resolution images for sale. 

For more information, see Intellectual Property.

First Nations artists may consider selling their work online on their own website or may choose to go through a retail platform or another gallery outlet. First Nations artists may have a greater degree of control over how their work is promoted and sold when they are running their own website. However, there are key considerations that online galleries or sellers must plan for to ensure that the ICIP of their artists is upheld.

For more information, see First Nations.

Where a dispute arises between a gallery outlet and an artist whose work they have offered for sale, or between an artist and the direct buyer of their work online, avenues for resolution include: Arts Law mediation, fair trading bodies and the Small Claims Tribunal. 

Arts Law provides a simple Debt Recovery Letter of Demand. 

Few avenues exist for dispute resolution between an artist and online platforms, so care should be taken when committing to sell works on these platforms. It is recommended that artists carefully review and consider all terms and conditions before signing up to an online platform.

For more information, see Grievances and Dispute Resolution.