When dealing with companies such as Etsy, the vaguest and most difficult to find information is almost always the charges that you will have to pay them. Etsy fees, just like everything else in their policies, are fairly complicated and do not make much sense at first glance. This article seeks to present Etsy fees in such a simple manner that it can serve as a handy guide.
Etsy Fees Broken Down
There are three basic fees that Etsy charges their shops. These fees are item listings, item sales, and direct checkout fees. Etsy, unlike what some people think, does not charge you to create a shop on their site. So, at least they do not gouge shops in that area, yet. However, the rest of the fees are somewhat of a mixed bag for the most part.
One of the main Etsy fees is the item listing fee. This fee is $0.20 USD for each listing. Now, this does not include multiples of the same item. So, if you make ten candles you want to sell on Etsy, it will cost you $0.20 USD per candle, or $2.00. This listing will only last four months, or until the item is sold. It is definitely possible to renew the listing, but then you must pay the item listing fee again for whatever quantity of products you have not sold yet. Now you know why many shops only list one or two of a certain product at any one time.
Like most sites that connect shoppers with shops, Etsy charges the shop owner a certain percentage of the sale price of their items. This Etsy fee is not too high, as it is 3.5% of the total sale price. The total sale price, thankfully, does not include any tax or shipping you must charge the customer. It is a pretty basic fee, though I can see how it would get annoying to always factor that into your sales.
There is also an Etsy fee for direct checkout, or the processing of payments via credit card, debit card, or Etsy gift card. Now, this fee varies from country to country, so for the sake of simplicity, I will just mention the United States fee. If you wish to process a payment with one of the above mentioned methods, you will have to pay Etsy 3% of the sale price, plus also an extra $0.25 flat rate fee.
I feel that Etsy really sticks it to their shops in this area, as 3% can add up quickly. Also, unfortunately, the percentage they take does include the tax and shipping costs that have been processed with the order. Many customers, however, use the Paypal option to process their payment, but there are fees with that, too (more on that later).
Other Etsy Fees
There is another obscure fee that is for a service that Etsy provides. Etsy fees apply for the search ads option that is available to shop owners. Search ads refer to the ability of shops to pay to have their shops or items listed at the top of the search engine results page when a shopper searches for certain products. This is a fair fee of about $1.00 for every 1000 times the shop’s results appear on the shoppers’ screens. Much like Facebook, shops can set a budget to control the money flow.
Controlling Etsy Fees
With $0.20 per item listing charge, a 3.5% sales fee, and a 3% of sale price plus $0.25 fee for every single item you sell on Etsy (not to mention advertising fees), these Etsy fees can add up quickly, and rob you of your hard-earned cash. It is wise to keep tabs on all of Etsy’s fees, so that you can determine whether it is all worth it in the end, or if you need to raise your shop’s prices. One way to keep tabs on the money flow here is to use calculators specifically formulated for these fees.
One such calculator, the Etsy fee calculator, is an excellent way to keep track of all your outgoing payments. It will even help you factor in shipping costs, so that you can know exactly how much you are making in profit. Also, if your customers like to use Paypal, there is a Paypal fee calculator that will help you figure out that extra charge, as well. Both of these tools can really help shops keep track of where their money is going, so that they will not have to keep such an anxious eye on the vague fees page on Etsy.