Decoding the Business of Pattern Design: Ravelry vs. Etsy

Table of Contents

1. Introduction
2. Ravelry vs Etsy: Understanding the Fees
   • Ravelry Fees
   • Etsy Fees
3. How Designers Get Paid on Ravelry
   • Listing Fee
   • Percentage Fee
   • PayPal Fees
   • Example Transaction on Ravelry
4. How Designers Get Paid on Etsy
   • Listing Fee
   • Percentage Fee
   • Payment Fee
   • Example Transaction on Etsy
5. Pros and Cons of Being a Consumer on Ravelry vs Etsy
   • Ravelry Pros
   • Ravelry Cons
   • Etsy Pros
   • Etsy Cons
6. Tips to Support Your Favorite Pattern Designer
7. Conclusion

Ravelry vs Etsy: Where Does Your Money Go?

Are you a consumer looking to understand where your money really goes when you purchase patterns on Ravelry or Etsy? Or are you a designer trying to decide which platform is best for selling your patterns? In this article, we will delve into the intricacies of fees and payments on both Ravelry and Etsy, providing you with a comprehensive overview of the topic.

Ravelry vs Etsy: Understanding the Fees

Before we dive into the specifics of how designers get paid on Ravelry and Etsy, it's important to understand the fee structures of both platforms. Ravelry and Etsy have different policies and guidelines when it comes to fees, and it's essential to be well-informed about these differences. Let's take a closer look at the fees associated with each platform.

Ravelry Fees

Ravelry, known for its simplicity, offers designers the opportunity to list their patterns for free. However, when a pattern is sold, Ravelry charges a percentage fee of 3.5% of the sale value. It's worth noting that Ravelry does not charge any fees for sales under $30 within a month. Once a designer reaches $1,500 in pattern sales in a month, the percentage fee is increased to 3% on sales within the European Union (EU). It's important to mention that Ravelry only allows payment through PayPal, which incurs its own set of fees.

Etsy Fees

In contrast, Etsy charges a listing fee of 20 cents for each pattern listed. This means that every time a pattern is sold, an additional 20 cents is deducted as a listing fee. On top of the listing fee, Etsy charges a percentage fee of 5% of the total pattern sale value. Similar to Ravelry, patterns sold on Etsy are subject to PayPal fees for payment processing.

How Designers Get Paid on Ravelry

Now that we have a better understanding of the fee structures on both Ravelry and Etsy, let's delve into the process of how designers get paid on Ravelry. We'll break it down step by step, using a sample transaction and explaining each fee along the way.

When a designer lists a pattern on Ravelry, there is no cost involved in the listing process. It's absolutely free for designers to upload their patterns on the platform. However, when a pattern is sold, Ravelry charges a percentage fee of 3.5% on the sale value. This fee applies if the designer's monthly sales fall between $30 and $1,500.

After deducting the Ravelry fee, the payment moves over to PayPal. PayPal charges a flat transaction fee of 30 cents and a percentage fee of 2.9% of the sale value. These fees are deducted to facilitate the money transfer to the designer's PayPal account.

To illustrate this process, let's consider a scenario where a designer sells a pattern for $6 on Ravelry. With the Ravelry fee of 3.5%, the designer's earnings are reduced to $5.79. Moving on to PayPal, the flat transaction fee of 30 cents and the percentage fee of 2.9% result in a further deduction, leaving the designer with $5.32 from the original $6 sale amount.

How Designers Get Paid on Etsy

Now, let's explore how designers get paid on Etsy. As mentioned earlier, when a designer lists a pattern on Etsy, there is a listing fee of 20 cents per pattern. Unlike on Ravelry, this fee is charged for each individual listing, meaning that for every sale, an additional 20 cents is deducted as a listing fee.

In addition to the listing fee, Etsy charges a percentage fee of 5% on the total sale value of each pattern. Similar to Ravelry, Etsy also uses PayPal for payments, which incurs its own set of fees.

To better understand the payment process on Etsy, let's consider a scenario where a designer sells a pattern for $6. After deducting the listing fee of 20 cents, the designer's earnings amount to $5.80. Once the Etsy percentage fee of 5% is applied, the designer's earnings further decrease to $5.50.

Pros and Cons of Being a Consumer on Ravelry vs Etsy

As a consumer, it's important to consider the pros and cons of using Ravelry or Etsy when purchasing patterns. Both platforms have their unique features and considerations that can greatly impact your experience as a consumer. Let's explore the pros and cons of each platform.

Ravelry Pros

• Instant downloads: Both Ravelry and Etsy offer instant downloads, allowing you to access your purchased patterns immediately.
• User-friendly library: Ravelry provides a visually appealing library where you can view all your purchased patterns at a glance.
• Advanced search options: Ravelry offers powerful search filters, allowing you to find patterns based on specific criteria such as knitting or crochet, weight, yardage, and more.
• Ability to receive updates from designers: Ravelry enables designers to send updates directly to your Ravelry inbox and email, ensuring you stay informed about any changes or improvements to the patterns you have purchased.
• Availability of free patterns: Ravelry hosts a wide range of free patterns, providing opportunities to discover and support designers without spending any money.

Ravelry Cons

• Limited payment options: Ravelry only offers PayPal as a payment method, which may not be convenient for some consumers who prefer alternative payment options.
• Potential controversies: Ravelry has faced controversies surrounding certain policies in the past, which may influence your decision to support the platform.

Etsy Pros

• Support for multiple categories: Etsy is a diverse marketplace that goes beyond patterns, offering a wide range of products for various hobbies and interests.
• Analytics and insights: Etsy provides sellers with comprehensive analytics and insights that can be valuable for designers looking to understand their sales performance.
• Coupon codes and sales: Etsy allows designers to offer coupon codes and sales, providing opportunities for consumers to save money on patterns.

Etsy Cons

• Limited search options: Etsy's search functionality is not as robust or specific as Ravelry's, making it potentially more challenging to find patterns based on specific criteria.
• Inability to sell free patterns: Unlike Ravelry, Etsy does not allow designers to sell patterns for free, potentially limiting the availability of free patterns.

Tips to Support Your Favorite Pattern Designer

If you want to support your favorite pattern designer without spending additional money, there are a few practical steps you can take:

1. Bundle your purchases: Whenever possible, try to buy multiple patterns together. This helps minimize the fees incurred by the designer, as the flat transaction fee applies per purchase, rather than per pattern.

2. Take advantage of sales: Keep an eye out for sales and promotions on both Ravelry and Etsy. Purchasing patterns during discounted periods helps designers generate sales and gain exposure.

3. Favorite and share patterns: Show your support by favoriting your favorite patterns on Ravelry and Etsy. Additionally, sharing patterns on social media or other platforms can help increase visibility for the designer.

By implementing these simple strategies, you can make a significant difference in supporting your favorite pattern designers at no extra cost to yourself.

Conclusion

Understanding how designers get paid on Ravelry vs Etsy is crucial for both consumers and designers themselves. By comprehending the fee structures and payment processes on both platforms, consumers can make informed decisions about where to purchase patterns. Simultaneously, designers can strategize and choose the platform that best aligns with their goals and preferences. Whether you opt for Ravelry or Etsy, supporting your favorite pattern designers can be achieved through simple actions such as thoughtful purchases, favoriting patterns, and sharing their work. Together, we can contribute to a thriving creative community.