Is Etsy Worth It? Get the Inside Scoop on the 2022 Fee Increase!

Table of Contents

1. Introduction
2. Etsy's Fee Structure
3. Impact of the Fee Increase on Artists
4. Considerations for Staying on Etsy
   • Managing Both Etsy and Own Website
   • Traffic and Customer Base Analysis
   • Administrative Efforts: SEO vs Social Media
5. Considerations for Moving to Own Website
   • Exploring Different Website Platforms
   • Transitioning Inventory and Listings
   • Tax Considerations
6. The Value of Etsy as a Handmade Marketplace
7. Conclusion

Etsy's Fee Increase: Stay or Go?

Etsy, the popular online marketplace for handmade goods, recently announced an increase in their transaction fees. This decision has led many artists and sellers to reevaluate their presence on the platform. In this article, we will delve into the implications of Etsy's fee increase and discuss whether staying on Etsy or moving to your own website is the right choice for you.

Etsy's Fee Structure

To understand the impact of the fee increase, let's first take a look at Etsy's fee structure. Etsy charges three main fees: transaction fee, payment processing fee, and listing fee. The transaction fee, which is the fee taken by Etsy for each sale, is set to increase from 5% to 6.5%. The payment processing fee is a standard fee charged by card processors, and the listing fee is a flat 20 cents for each item listed.

Impact of the Fee Increase on Artists

While a 1.5% increase may not seem significant at first glance, it can have a substantial impact on artists who rely heavily on Etsy for their income. Let's consider an example: if you sell a $50 mug, the transaction fee will increase from $2.50 to $3.25. This difference may not seem substantial for individual sales, but if you are regularly selling multiple items, this fee increase can add up quickly.

Considerations for Staying on Etsy

Before making a decision, it's important to consider several factors. First, can you effectively manage both an Etsy shop and your own website? Many artists choose to maintain a presence on Etsy while also having their own website. This allows them to benefit from Etsy's search and exposure while also maintaining control over their brand on their own website.

Secondly, analyze your traffic and customer base. If the majority of your traffic is coming from Etsy, it may be worth staying on the platform. However, if you can drive a significant amount of traffic to your own website, it might be time to make the transition.

Another crucial aspect to consider is how you want to allocate your administrative efforts. Building up your SEO on Etsy may require time and keyword research, whereas focusing on social media may be a better fit for showcasing your brand and connecting with customers. Evaluate which approach aligns better with your strengths and goals.

Considerations for Moving to Own Website

If you are considering moving to your own website, there are several important factors to address. First, explore different website platforms such as Shopify, Squarespace, or Wix. Take advantage of their free trials to test out their interfaces and features to find the best fit for your needs.

Consider the migration process for your inventory and listings. Some platforms have built-in migration tools that allow you to transfer your listings from Etsy to your own website seamlessly. However, be prepared for the work involved in rebuilding your listings and ensuring a smooth transition.

Don't forget to consider tax implications. Review the sales and use tax nexus in your state to determine if you meet the thresholds that require sales tax collection. It may be necessary to consult with a tax professional to ensure compliance.

The Value of Etsy as a Handmade Marketplace

Despite the fee increase, there are still benefits to maintaining a presence on Etsy. It is the largest handmade marketplace, and its robust analytics and trend alerts provide valuable insights for artists. Etsy's search algorithm can also help you reach new customers who are specifically searching for handmade products.

Conclusion

In the end, the decision to stay on Etsy or move to your own website depends on various factors, including your income, traffic, administrative preferences, and long-term goals. Consider the pros and cons of both options, test out different platforms, and evaluate your business needs to make an informed decision. Remember, there is no one-size-fits-all solution, and what works for one artist may not work for another.