Etsy is an e-commerce website specializing in creating a marketplace for handcrafted items. It enables artisans to sell their creations to a large and diversified audience they might not have had access to otherwise. Etsy collects fees for each sale made by the individual who posts their products for sale to provide the service.
The website charges a fee to post a listing to the seller’s online store and a transaction fee based on the cost of the item and shipment. Selling on Etsy is beneficial, particularly when combined with your e-commerce site.
Connecting your e-commerce site with Etsy allows you to lessen the impact of Etsy fees on your sales while also expanding your consumer base. Continue reading to learn more about Etsy fees and how they affect your business.
How Much Does Etsy Charge for Your Listings
Every item you sell on Etsy incurs a listing fee and a transaction fee. When it comes to how much Etsy charges every sale, you’ll notice that you spend $0.20 for each product you sell and a 6.5% transaction fee on each sale. The listing will be active for four months or until the item is sold. The 6.5% transaction charge is applied to the overall cost of the sale, plus delivery, once the item sells.
On the surface, the fact that Etsy takes a part of the delivery cost may appear unfair. Etsy takes a portion of the delivery cost to prevent sellers from offering a low sale price and making up the difference in shipping costs. It leveled the playing field for vendors that sell similar things but can’t or won’t compete with merchants who try to avoid expenses by raising shipping prices.
The Importance of Knowing Etsy’s Fees
Knowing what Etsy fees to expect and how much they will cost can assist you in establishing a business strategy and a budget for an Etsy store. With paying your charges on time can also boost your store’s reputation.
If you keep your account in good standing for a long enough time, you’ll be able to sign up for Etsy Plus, giving you a variety of new tools and perks and will assist you in growing your Etsy store into a business.
Sellers who fail to pay the fees on time risk having their sales privileges revoked and their accounts terminated, so it’s critical to understand and remain on top of your Etsy fees. And now that you recognize the essentials of Etsy fees let’s look at the many costs you could encounter.
Types of Etsy’s Fees
Etsy charges a fixed cost of $0.2 for every product/listing you list on the site. This is true for both physical and digital things. If you offer a service and want to keep it in the store, you must pay the $0.2 listing charge each time you sell it.
For example, if a consumer purchases three goods from your business, you must pay $0.6 in listing costs. Listings are only valid for four months.
If the product isn’t sold and you wish to retain it in the shop, you must renew the listing and pay an additional $0.2. You can do it manually or set it to continue the listing automatically.
Etsy’s transaction charge is 6.5% of the total sale price. These fees are now only taken on products sold in your Etsy store and are automatically added to your account whenever a purchase has been made.
Payment processing fees
Most Etsy sellers use Etsy Payment, Etsy’s payment processing system, to receive money from consumers. It allows sellers to take various payment methods such as credit cards, debit, Apple Pay, money transfers, Etsy gift vouchers, etc. Sellers must accept Etsy payments if they live in one of the 36 authorized countries, which include the United States, United Kingdom, Australia, Canada, and others.
The cost varies depending on where your bank account is located. The payment processing cost for most US vendors (or sellers accepting money from US bank accounts) is $0.25 + 3% of the total price with shipping, customization, and gift wrapping. You can accept payments using PayPal if you are not in an approved country. They charge comparable costs for payment processing.
Promotional and advertising fees
Etsy Ads and Offsite Ads are services available to assist you in advertising the listings or promoting your shop. If you use Etsy Ads, you choose your daily limit budget, which is explained in more detail below. Fees for Offsite Ads are only paid if Etsy’s advertising of your listing results in a sale, as detailed below. Please visit the Advertising and Marketing Policy for additional information.
A monthly subscription to Etsy Plus costs $10. Your current amount will be deducted from the monthly subscription fees for Etsy Plus, and these transactions will be logged into your payment method. Etsy reserves the right to add appropriate local taxes (such as sales taxes, VAT, or GST) to your monthly subscription price when those taxes are required.
Etsy allows sellers in particular areas to buy shipping labels for fulfilling purchases. The price of the shipping label is determined by the shipping carrier and the package’s origin, location, weight, and dimensions. If you choose to include signature verification or insurance, the fees will be included in the total price of the label at the time of purchase.
Sellers who buy shipping labels can also get parcel insurance from approved insurance companies. Sellers in the United States who buy USPS shipping return labels would be charged when the returned product is delivered.
To buy shipping labels on Etsy, you must support Etsy Payments and PayPal as payment methods. Shipping charges and any modifications appear in your payment method and are deducted from the current balance.
For the next 30 days, you can use the Pattern tool to build a customized website for free. Following the 30-day free trial, a monthly subscription price of $15.00 will be applied. Etsy may impose taxation (e.g., tax rates or VAT/GST) on your monthly fee price where applicable.
The first month’s fee will be prorated, and you’ll be charged the entire subscription fee for every month you use Pattern after that. If you acquire a domain name from their partner Tucows, Inc., you would be charged a price to register the web address and any related services.
Currency conversion fees
Etsy transfers fees from USD to the payment account currencies at the market rate when the expense is recorded in your payment account, except for the transaction charge, Offsite Ads fees, Payment Processing fees, Regulatory Operating fees, or deposit fees.
All fees are shown in your checking account in your home currency. On the other hand, users of Etsy Payments in Bulgaria, Croatia, the Czech Republic, Hungary, Poland, and Romania will have all fees collected from their payment account in their specified payment account currency, the Euro.
Is it Worth Selling Your Products on Etsy?
For many sellers, selling their products via Etsy is worthwhile because of the ease of listing and the assistance they receive from the site. Nevertheless, it can be difficult and costly, especially if you are not selling in large quantities.
Before you begin offering your things for sale on Etsy, you should decide what you want to achieve. Analyzing the benefits and drawbacks of selling on Etsy will assist you in determining if e-commerce on a robust platform is right for you.
Everything you need to know about Etsy seller costs, including listing fees, transaction fees, subscription fees, and advertising fees, has been presented above. In a nutshell, Etsy’s prices are pretty competitive, and it’s not too expensive to have a store up and running there.
The only item slightly more expensive than it should be is the transaction costs for shipping. Customers may be discouraged from purchasing if the delivery charges are high. You can, however, enhance it using Etsy’s innovative pricing tool to develop the most effective price strategy.