Overview

When a customer purchases your book using a Direct Buy Button, payments are processed through Stripe and payouts are sent to your connected Stripe account. The timing of your payouts depends on your account stage.

TABLE OF CONTENTS


How Are Payouts Calculated?

When a customer places an order using the Direct Buy Button or Embedded Checkout, the payment is processed through Stripe. From the amount paid by the customer, the following costs are deducted before your payout is sent:

  • Print cost – The cost to manufacture your product.
  • Shipping & handling – The shipping method selected by the customer.
  • Applicable taxes – Taxes collected on the fulfillment transaction, where required.
  • Fulfillment fee – The Lulu Direct fulfillment fee.
  • Stripe payment processing fees – Fees charged by Stripe for processing the customer's payment.
  • Reserve hold – A temporary reserve that is released according to your account's payout schedule.

    Example:
    Suppose a customer paid you for the Book List Price, Shipping, and Taxes in your store.
    Your Customer's Payment: $37.64

    DescriptionAmount
    Customer payment to you$30.00
    You Pay Lulu:
    Print cost-$8.00
    Shipping & handling-$5.00
    Fulfillment fee-$1.75
    Taxes-$1.00
    Subtotal payout$14.25
    Stripe Processing Fee-$1.20
    5% Reserve Hold-$1.50
    Initial payout$11.55


The remaining balance is your payout, which is deposited into your connected Stripe account according to your account's payout schedule.

After the applicable reserve period has ended, the reserve is automatically released to your Stripe account.


Important: This example is for illustration only. Your actual costs and payout will vary depending on your product specifications, shipping method, destination, applicable taxes, Stripe processing fees, and your product's list price.


What Are the Different Account Stages?

Standard Accounts

Your account is considered standard until it has accumulated $3,000 USD in gross order value.

During this period:

  • Payments are released 14 days after each order is placed.
  • Payout eligibility is evaluated daily and processed through your connected Stripe account.
  • 5% of each order is held in reserve and released 30 days after the order date.


The reserve helps cover situations such as refunds, chargebacks, or order issues while a standard account establishes its transaction history.


Example: Using the order from the previous example, your customer pays $30 on June 1. After fulfillment costs and applicable fees are deducted, your revenue for the order is $11.55. Because new accounts have a 5% reserve hold, you'll receive your payout in two installments:

95% of the $11.55 will be paid on June 15, and the remaining 5% will be paid on July 1.


DateEventAmount
June 1Customer places an order and pays your store$30.00
June 1Your revenue after Lulu Direct costs are deducted$11.55
June 15Initial Stripe payout (95% of revenue)$10.97
July 1Reserve released (remaining 5%)$0.58
Total Revenue Received$11.55


Established Accounts

Once your account has accumulated more than $3,000 USD in gross order value, it automatically becomes Established.

Established accounts benefit from an accelerated payout schedule:

  • Payments are released 7 days after each order is placed.
  • 5% of each order is still held in reserve, but it is released after 14 days instead of 30.


Example: Using the same example order above, your customer pays $30 on June 1. After fulfillment costs and applicable fees are deducted, your revenue for the order is $11.55. Because your account is Established, you'll receive your revenue sooner:


DateEventAmount
June 1Customer places an order and pays your store$30.00
June 1Your revenue after Lulu Direct costs are deducted$11.55
June 8Initial Stripe payout (95% of revenue)$10.97
June 15Reserve released (remaining 5%)$0.58
Total Revenue Received$11.55


Compared to New Accounts, Established Accounts receive both their initial payout and reserve release sooner, allowing revenue to become available more quickly while maintaining the same 5% reserve policy.


Frequently Asked Questions

What Is a Reserve?

A reserve is a temporary hold on a portion of your earnings.


The reserve helps ensure funds are available to cover situations such as:

  • Customer refunds
  • Chargebacks
  • Payment disputes

Reserve funds are not deducted permanently. Unused funds held in reserve are paid out after 30 days for new accounts, and after 14 days for established accounts.

Will I Receive the Full Amount I Earn?

Yes.

The reserve is temporary and rolls over continuously. As older reserve funds are released, they are included in future payouts. Over time, you will receive the full amount earned from your sales, less any reserve funds used for refunds or payment issues.

How Do I Know Which Account Stage I'm In?

You can view your sales activity and payout information in your Stripe account and Lulu Direct Dashboard.

Your account will automatically transition from Standard to Established once it exceeds $3,000 in gross order value. No action is required.


Note: Gross Order Value is the total value of all customer orders processed through your account before any deductions, such as print costs, shipping, taxes, fees, refunds, or reserves.



Why Haven't I Received a Payout Yet?

Common reasons include:

  • Your order is still within the payout waiting period
  • Funds are currently being held in reserve
  • Your Stripe account setup is incomplete
  • Stripe is verifying account information
  • A payout is currently being processed by your bank


How Do I Receive My Payouts?

All payouts are sent directly to the Stripe account connected to your Lulu Direct Buy Button or Embedded Checkout integration. You can view your payout history and schedule from your Stripe Dashboard.


Does My Account Automatically Become Established?

Yes. Once your gross order value exceeds $3,000, your account automatically moves to the Established stage.

Can I Request Faster Payouts?

No. Payout schedules are determined by your account stage.

What Happens if a Refund is Issued to my Customer?

Refunds may be covered using available reserve funds. This helps ensure customers can be refunded promptly when necessary.


Important: Please note that if a refund to a customer exceeds the available amount in reserve funds, Lulu will collect the difference from your connected bank account.