Demystifying Etsy Fees

Demystifying Etsy Fees

Table of Contents

1. Introduction
2. Understanding Etsy Fees
3. Listing Fee
4. Transaction Fee
5. Payment Processing Fee
6. Shipping Fees
7. Etsy Ads Fee
8. Off-Site Ads Fee
9. Etsy Plus Subscription
10. Etsy Pattern Subscription
11. Regulatory Operating Fee
12. Currency Conversion Fee
13. Conclusion

Understanding Etsy Fees

Welcome to another video in our Etsy 101 series! In this tutorial, we will be discussing Etsy fees and how they affect your selling experience on the platform. As an aspiring Etsy seller, it is important to understand the fees involved in order to properly price your items and ensure a healthy profit margin. While fees may seem overwhelming at first, we will break them down and explain each one in detail so that you can confidently navigate through the world of online selling on Etsy.

1. Listing Fee

The first fee we will discuss is the listing fee. Each time you create and publish a new listing or renew an existing listing, a listing fee of 20 cents will be charged. However, there is no fee for editing an existing listing. If you have multiple quantities listed and set to automatically renew, the 20 cents listing fee will apply each time the listing sells and renews. It is important to note that the listing fee is active for four months by default. If a listing does not make a sale within the four-month period and you choose to renew it, an additional 20 cents listing fee will be charged.

2. Transaction Fee

The transaction fee is a crucial aspect of selling on Etsy. The current transaction fee is 6.5% and applies to every transaction, including the listing price, shipping costs, and gift wrapping charges. This fee is deducted automatically from your payment account each time a sale occurs. It is important to remember that the transaction fee does not apply to sales tax if you are collecting it separately from the listing price. However, if sales tax is already included in the listing price, the transaction fee will apply.

3. Payment Processing Fee

The payment processing fee is applicable to sellers who accept Etsy payments. Etsy payments offer additional payment options to buyers, including PayPal and various credit card companies. The specific amount of the payment processing fee varies depending on the location of your shop's bank account. For US sellers, the payment processing fee is 3% plus 25 cents per transaction. It is important to opt in and make Etsy payments available for your shop in order to use this payment processing method.

4. Shipping Fees

Shipping fees come into play if you have physical goods that require shipping. If your shop accepts PayPal or Etsy payments, you have the option to purchase shipping labels through Etsy. This allows you to conveniently handle shipping within the Etsy platform. The fees for shipping labels will be deducted from your payment account if you choose this option. The shipping options available for US sellers are FedEx and USPS.

5. Etsy Ads Fee

Unlike the previous fees, the Etsy Ads fee is optional. Etsy Ads are paid advertisements on the Etsy platform that help promote your listings and increase their visibility in search results. By setting a daily budget, you can control how much you spend on Etsy Ads. Each time a buyer clicks on your ad, you will be charged accordingly. It's important to carefully choose which listings to advertise and set a budget that suits your comfort level.

6. Off-Site Ads Fee

Similar to Etsy Ads, the off-site ads fee is also an optional fee. Etsy purchases off-site advertising from partner platforms such as Google and Facebook. If your listing is chosen for promotion through an off-site ad and a sale occurs within 30 days of the buyer clicking on the ad, the off-site ads fee applies. The fee amount varies depending on your shop's sales volume. Shops that have made less than $10,000 in the previous 365 days will pay a higher fee of 15%, while shops that have exceeded this threshold will pay a reduced fee of 12%. However, shops that have met or exceeded the $10,000 threshold are required to participate in off-site ads.

7. Etsy Plus Subscription

Etsy Plus is a monthly subscription that provides additional features and benefits for Etsy sellers. For a fee of $10 per month, Etsy Plus subscribers receive 15 monthly listing credits, $5 in monthly Etsy Ads credits, restock requests, a discount on custom domain names, and advanced shop customization options. This subscription is optional and can be a valuable investment for sellers looking to enhance their Etsy shop's capabilities.

8. Etsy Pattern Subscription

Etsy Pattern is another subscription option for sellers who want to expand their online presence. With Etsy Pattern, sellers can create their own website through Etsy. The monthly fee for Etsy Pattern is $15, offering additional features beyond what is included in the Etsy Plus subscription. This subscription is also optional and provides sellers with a personalized platform to showcase their products.

9. Regulatory Operating Fee

The regulatory operating fee is location-based and applies to sellers in certain countries. Etsy charges this fee to cover additional operating costs associated with compliance to regulations in specific countries. The fee is a fixed amount based on the listing price, including any extra charges for gift wrapping, shipping, or personalization. The countries where this fee applies can be found in the Etsy Help Center.

10. Currency Conversion Fee

If you list and make a sale in a currency other than your shop's payment account currency, Etsy will handle the currency conversion. When currency conversion is required, Etsy applies a 2.5% fee to the transaction total. The fee calculation rates are regularly updated, and the specific details are available in the Etsy Help Center.

Conclusion

Understanding Etsy fees is essential for any seller looking to establish a successful shop on the platform. By familiarizing yourself with the various fees and their implications, you can effectively price your products and ensure a healthy profit margin. Remember, not all fees will apply to every seller, so it is crucial to assess which ones pertain to your specific circumstances. With proper pricing strategies and a comprehensive understanding of Etsy fees, you can navigate the online selling world with confidence and take your Etsy shop to new heights.