Etsy is a popular online store where individuals buy and sell items. It is crucial for Etsy sellers to be aware of the costs involved with listing their products there. From listing fees to transaction fees, Etsy charges fees for various services sellers use to make their items visible to potential buyers. This guide will explain these costs and share an example calculation of these fees in an Etsy transaction.
Why is it Essential to Understand Etsy Payments?
For Etsy sellers, understanding the charges related to trading on the platform is necessary for making a profit. Etsy charges various types of fees like listing fees, transaction fees and payment processing charges which can quickly add up if you have many listings or sell a large volume of products. These amounts could quickly become prohibitively expensive if these costs become an issue for you.
What Are the Various Etsy Selling Fees?
Before starting a shop on Etsy, it’s essential to be aware of all seller fees associated with selling there. Here are the various charges:
A fixed charge of $0.20 is applied each time you list a product for sale on Etsy. This charge is good for four months, after which a $0.20 cost is required to keep the listing current. If your product sells within that time frame, the fee automatically deducts from your account. However, if there are many quantities attached to one listing after four months have passed or if there are still significant quantities remaining, the listing must be renewed and payment made again.
This percentage of an item’s final sale price serves as Etsy’s most significant charge and it has been applied as 6.5 % since April 11th, 2022. It’s worth mentioning that this transaction charge is applied to the buyer’s total payment, which includes the item price plus shipping fees and taxes.
Payment Processing Fee
Etsy charges this fee when sellers use Etsy Payments as their payment gateway. With Etsy Payments, shops can accept credit and debit cards, Etsy gift cards, and payment options. Without it, shoppers would only have PayPal as an alternative for checkout.
Etsy Payments charge $0.25 per transaction and 3% of the sale amount. This fee is deducted from buyers’ total costs, including item price, shipping charges, and taxes.
This is the listing fee that automatically renews after 4 months. As mentioned above, the $0.20 listing fee is good for four months.
Etsy advertisements put the power in the hands of the sellers by allowing them to opt-in and establish daily budgets directly from the Etsy website and mobile app. Prices for clicks range from $0.02 per click up to $0.05.
Etsy also lets sellers set up ads that run on networks like Instagram, TikTok, and Google that are not part of Etsy. They only bill sellers when somebody buys an item through their ad or within a month of clicking the ad. It’s essential to be aware that Etsy requires sellers to pay for the offsite ad program if their Etsy shop makes $10,000 annually or more.
In Person Selling Fee
If a seller has a Square account, they can sell items in person. The charge for using Square is $0.10 and 2.6% per swiped transaction or $0.15 per transaction and 3.5% for non-card payments. However, transactions from Square don’t attract the 6.5% transaction fee.
Currency Conversion Fee
When sellers sell globally, customers may make purchases in their home currency. Etsy charges a 2.5% fee to pay sellers in other currencies. This fee applies when sellers list their items in a currency other than their bank account’s currency. As such, Etsy strongly suggests that sellers use the same currency as their bank account when setting prices.
Etsy includes a regulatory operating charge in the total selling price in certain countries to cover the higher costs associated with doing business there. The fee differs based on the region, e.g.:
- France: 0.4%
- Italy: 0.25%
- Spain: 0.4%
- Turkey: 1.1%
- United Kingdom: 0.25%
Etsy Pattern Fee
Etsy Pattern is a website-building software that connects your personalized website to an Etsy seller account. Adding an Etsy product to your Pattern website is $15 per month after the first 30-day free trial, with no extra listing or renewal fees.
Shipping Fees are the costs incurred by the business while using its courier partners to get courier services. On Etsy, shipping fees are determined by several factors, including the destination, size, and weight of your shipment as well as its carrier and origin.
This fee is charged when you sell more than one item from the same listing in the same transaction. If your customer purchases only one item from that same listing, then you only pay the $0.20 listing fee once. However, if they purchase multiple items from the same listing simultaneously, each will incur the $0.20 listing fee per item purchased.
Etsy Pricing Plans
As a seller, you may choose between the Etsy Basic and Etsy Plus plans. Each has its own features and costs, so sellers can pick which plan best meets their requirements.
Etsy Standard Pricing Plan
Etsy Standard is a pricing plan offered to its sellers that is ideal for small to medium-sized businesses just starting out on Etsy, and there’s no monthly fee with it. Below are some features of Etsy Standard:
- Listing Fees: Etsy charges $0.20 for each item listed on their platform, which is non-refundable regardless of whether your item sells or not.
- Transaction Fees: Etsy charges a fee of 3% + $0.25 for every transaction using their payment processing service.
- Payment Processing Fee: Etsy charges a fee of 3% + $0.25 for every transaction using their payment processing service.
- Advertising Fees: Etsy also provides advertising services to assist merchants in promoting their listings. If you choose to utilize Etsy’s advertising services, a fee will be assessed based on the budget you set for your ads.
Etsy Standard plan sellers gain access to the core features of the platform, such as creating listings, accessing seller tools and customer support. This plan is the default choice for all Etsy sellers.
Etsy Plus Pricing Plan
Etsy Plus is a pricing plan offered by Etsy to assist sellers in increasing their shop’s visibility and expanding their business. At $10 per month, this plan has the following benefits and features:
- 15 Custom Listings: Sellers have the option to create custom listings with options like color, size or personalization. This feature helps save them time and streamline their listings.
- Shop Customization Options: Sellers have the ability to personalize their shop’s layout and branding with advanced banner and icon options, customizable featured listings, and more.
- Listing and Shop Pattern Templates: Sellers can save time by using pre-designed templates for their listings and shop pages.
- Exclusive Discounts on Custom Packaging and Promotional Materials: Etsy Plus members have exclusive access to discounts on custom packaging and materials such as business cards, stickers, and more – perfect for small business owners on a budget!
- Advanced Shop Analytics: Etsy Plus members can monitor their shop’s performance with advanced analytics, which include information on traffic, sales and customer behavior.
If you’re thinking about upgrading to Etsy Plus, it is essential that you assess if the additional features will be worth the cost for your business. Take some time to review your shop’s performance and objectives, then evaluate whether the benefits of the Plus plan align with what needs you have identified. Sellers on the Etsy Plus plan can cancel their subscription at any time; if done before their billing cycle ends, they won’t be charged for the following month either.
Etsy Listing Fees: How Are They Calculated?
Understanding Etsy listing fee is essential when trying to calculate it accurately. Let’s examine how Etsy determines listing fees:
Imagine you’re selling handmade soap on Etsy for $10 and want to list 10 bars of soap for 30 days. This is how the listing fees are calculated:
- Listing fee: $0.20 per item = $2.00
- Transaction Fee: 5% of item price = $0.50
- Payment Processing Fee: 3% + $0.25 per transaction = $0.55
- Multi-quantity fee of $0.20 per item over the initial item = $1.80
Total Etsy fees for this listing: $5.85
If you choose to utilize Etsy’s advertising services or other additional offerings, additional charges may apply.
How to Pay Etsy Fees?
Fees are charged to your Etsy shop for selling on Etsy. These fees automatically deduct from your sales if you make any sales. Your current balance is the difference between your sales and any fees. You will be charged an amount due in your payment account if you have a negative month-end balance. To pay your amount due:
- Go to Shop Manager on Etsy.com
- Tap More in the Sell on Etsy App
- Navigate to Finances
- Cick on Payment account
- Click on Pay now under Amount due
- Choose the amount to pay.
- Select your preferred payment method
- Click on Submit Payment.
Tips for Saving on Your Etsy Fees
As a seller on Etsy, it’s always beneficial to find ways to minimize expenses and maximize profits. Here are some tips to assist you in cutting costs while still enjoying great profits:
- Offer Free Shipping: Offering free shipping to your customers can help you save on Etsy fees, since it increases the likelihood of making a sale and eliminates having to pay the transaction fee on shipping costs.
- Utilize Promoted Listings Wisely: Promoted Listings can be an effective tool for increasing visibility for your listings, but it’s essential that you use them wisely. Set a budget for your promoted listings and monitor their performance closely to guarantee a good return on investment.
- Optimize Your Listings: Make sure that you optimize your product listings with detailed descriptions, beautiful photos, and keywords that are relevant to the product. Doing this will boost their ranking in search results and increase the possibility of making a sale – thus cutting down on how often you have to pay listing fees.
- Price your products strategically: Take into account all fees involved when setting prices. Ensure you consider the various Etsy charges when setting your prices. Avoid underpricing products since this can reduce profits and make covering these costs more challenging.
- Take Advantage of Free Listings: Etsy often offers free listings, so keep an eye out for these chances to list as many products as possible during the promotional period.
- Bundle Products: Provide bundle deals to customers who purchase multiple items from your store, cutting down on the number of listings needed and decreasing overall listing fees.
- Use Etsy payments: You can accept many payment alternatives including prepaid cards, credit cards and Apple Pay. This can help increase sales, reduce transaction disputes, and ultimately lower processing fees.
- Utilize Roketfy Tools: Roketfy offers a suite of tools to assist Etsy sellers in optimizing their listings, boosting Etsy SEO, and increasing sales. For instance, the Roketfy AI Writer helps craft compelling product descriptions, while the AI Reviews tool encourages positive reviews which could result in higher sales and lower advertising expenses.
- Evaluate Shipping Costs: Don’t just settle for the first shipping provider you find. Perform due research to pick the one that meets your requirements while sticking to your budget.
- Consider Upgrading to Etsy Plus: For high-volume sellers, upgrading to Etsy Plus may be worth the cost as it offers several features that could help save on fees.
These suggestions can help you minimize your Etsy fees and increase your earnings.
For any seller on Etsy who wants to make money on the platform, understanding Etsy’s various fees is essential. By doing so, sellers can make smarter choices about pricing products and optimizing listings. It’s possible that Roketfy is just what your online store needs to achieve greater success. Their powerful tools and easy-to-use interface will help your shop run more efficiently while it is expanding. Sign up for a free trial now and see how Roketfy can help you succeed both on Etsy and beyond!