If you sell materials/supplies and not handmade items - then, yes, Etsy fees are too high. When you sell materials, there is the MSRP, and if you try to charge more, no one will purchase your items. Your competition is selling exactly the same items, at exactly the same price, or perhaps a bit less. But there is also the MAP. The Minimum Advertised Price that the manufacturer will allow you to charge. Where the problem is - the 12% FORCED off-site ad fee. My profit margin in 8-10% (mostly because my shipping costs run about 22-25% of my revenue). So, whenever I have a sale from an off-site ad, I take LOSS on the sale. This month, 67% of my sales were from off-site ads. Yes, with off-site ad fees, Etsy fees are farTOO HIGH for sellers of supplies/materials.
I’m planning on abandoning the platform in the near future. I can’t afford to sell on there anymore, specially with the offsite ads. I have sales that lose 35% of their profit now because of the offsite ad stuff. I can’t afford that loss so I have to raise my prices but then no one will buy from me because it’s too expensive.
Thank you very much Jess, it was very insightful. I knew about all of the fees except the 0.32% for the UK (where I am). I have just opened my shop and decided to opt out of offsite ads and not use Etsy ads for now. It's an experiment to see if I'm getting sufficient (or any) traffic and sales through Etsy. If I don't, then I might consider ads, but that would hurt my profit margins, no doubt
For every product one carries on Etsy, it is .60USD per year since it renews every 4 months. Then you look at the rest of the fees. I calculated roughly 22% goes to fees, that is not taking into account shipping. I roughly calculated that if you have more than about 600 products, Etsy is too expensive. Thank you!
@@JessVanDen This is how I figured it: Just the 6.5% of sale + (3% +.25 processing fee based on U.S.), and when one scales then the additional 12% Offsite add whether you use or not. I figured you could begin to make revenue but after about 600 products it is better to go off Etsy, which you mentioned briefly.
Hello! Im a mexican artisan (located in mexico) and i dont quite understand... About payment processing fees, on the column that says "deposit fee where applicable" does it mean they will charge me that amount for selling something under that price? PLUS the other fee 4.5%+10 mxn ???
Ohh didn’t realise re: synching Square that’s a great - will have to remember this when I do a market next time, Also thanks for explaining the Offsite ads - my last order was from an offsite ad & didn’t understand why I was charged as I thought they had added me to run ads but clearly I confused myself re: paying for ads Love the way you’ve recently been doing your videos to - really like it.
So the auto renew ? I may have missed this if I have 4 different types of soaps and I also have different options of those 4 as well (that will be in the drop down options) like flavors of soaps that are made different ways When I set up auto renew for those 4 since I can remake these products and the auto renew I set up already do they stay on there for 4 months then Etsy renews it and charges me the 20cents for each of the 4 again ? Sorry that part had me a little confused. Thank you so much for making this helpful video
just found your channel really live you content and information , thank you , does etsy have seller levels LIKE TEE PUBLIC , also is it ok to use a shop for POD or is it fround apon
Hi Jess I'm also in Australia and planning to open a store to sell in the US. I notice that etsy has a markup when converting AUD prices to USD for US customers that works out to be more than 5%. Do you know if I can ask to be paid by etsy in USD if my bank account is listed as here in Australia? I thought a Wise/Revolut account could work or maybe a multicurrency bank acount. I'd like to have my store in USD and be paid in USD so that the store prices aren't changing everyday and to avoid the exchange rate markup, thanks
You can list in USD, but if you're in Australia, you'll get paid in Australian dollars after they do the currency exchange (and you get charged an additional 2.5% on your fees, too).
@@JessVanDen Jess do you get the full amount that Etsy transfers to you, or are amounts taken out by the banks during each transfer? I read that SWIFT transfer fees could be like $20-$40. Do you get your Etsy payouts daily or do you make it less often to minimise transfer fees? I don't expect to sell huge amounts and I'm starting to be discouraged when looking at the potential costs for operating outside of the US, thanks
And thank you for breaking down this info! It's so helpful
If you sell materials/supplies and not handmade items - then, yes, Etsy fees are too high. When you sell materials, there is the MSRP, and if you try to charge more, no one will purchase your items. Your competition is selling exactly the same items, at exactly the same price, or perhaps a bit less. But there is also the MAP. The Minimum Advertised Price that the manufacturer will allow you to charge. Where the problem is - the 12% FORCED off-site ad fee. My profit margin in 8-10% (mostly because my shipping costs run about 22-25% of my revenue).
So, whenever I have a sale from an off-site ad, I take LOSS on the sale. This month, 67% of my sales were from off-site ads.
Yes, with off-site ad fees, Etsy fees are farTOO HIGH for sellers of supplies/materials.
I’m planning on abandoning the platform in the near future. I can’t afford to sell on there anymore, specially with the offsite ads. I have sales that lose 35% of their profit now because of the offsite ad stuff. I can’t afford that loss so I have to raise my prices but then no one will buy from me because it’s too expensive.
I sold an item on Thursday for $18, then I got paid $0, because of Etsy fees , Etsy ads etc ...
Thank you very much Jess, it was very insightful. I knew about all of the fees except the 0.32% for the UK (where I am). I have just opened my shop and decided to opt out of offsite ads and not use Etsy ads for now. It's an experiment to see if I'm getting sufficient (or any) traffic and sales through Etsy. If I don't, then I might consider ads, but that would hurt my profit margins, no doubt
I hope you will update this comment with how going ad-free goes!
Thank you so much very well explained.
Glad it was helpful!
For every product one carries on Etsy, it is .60USD per year since it renews every 4 months. Then you look at the rest of the fees. I calculated roughly 22% goes to fees, that is not taking into account shipping. I roughly calculated that if you have more than about 600 products, Etsy is too expensive. Thank you!
How did you get to 22% fees? It's usually closer to 10% (excluding offside ads, which will only apply to a fraction of your sales).
Also, you pay shipping cost no matter where you sell online, so that's irrelevant. And you should be charging your customer the cost to cover that.
@@JessVanDen This is how I figured it: Just the 6.5% of sale + (3% +.25 processing fee based on U.S.), and when one scales then the additional 12% Offsite add whether you use or not. I figured you could begin to make revenue but after about 600 products it is better to go off Etsy, which you mentioned briefly.
Hello! Im a mexican artisan (located in mexico) and i dont quite understand... About payment processing fees, on the column that says "deposit fee where applicable" does it mean they will charge me that amount for selling something under that price? PLUS the other fee 4.5%+10 mxn
???
Ohh didn’t realise re: synching Square that’s a great - will have to remember this when I do a market next time, Also thanks for explaining the Offsite ads - my last order was from an offsite ad & didn’t understand why I was charged as I thought they had added me to run ads but clearly I confused myself re: paying for ads
Love the way you’ve recently been doing your videos to - really like it.
So glad you're enjoying them!
Well explained . Thank you
So the auto renew ? I may have missed this if I have 4 different types of soaps and I also have different options of those 4 as well (that will be in the drop down options) like flavors of soaps that are made different ways
When I set up auto renew for those 4 since I can remake these products and the auto renew I set up already do they stay on there for 4 months then Etsy renews it and charges me the 20cents for each of the 4 again ? Sorry that part had me a little confused. Thank you so much for making this helpful video
Etsy listings last 4 months and cost you 20cents when you first list your products and the same again for every renewal after that.
Hello, i paid the setup fee with my business card, do you know where i can find the invoice? i searched everywhere :O
just found your channel really live you content and information , thank you , does etsy have seller levels LIKE TEE PUBLIC , also is it ok to use a shop for POD or is it fround apon
Hi Jess I'm also in Australia and planning to open a store to sell in the US. I notice that etsy has a markup when converting AUD prices to USD for US customers that works out to be more than 5%. Do you know if I can ask to be paid by etsy in USD if my bank account is listed as here in Australia? I thought a Wise/Revolut account could work or maybe a multicurrency bank acount. I'd like to have my store in USD and be paid in USD so that the store prices aren't changing everyday and to avoid the exchange rate markup, thanks
You can list in USD, but if you're in Australia, you'll get paid in Australian dollars after they do the currency exchange (and you get charged an additional 2.5% on your fees, too).
@@JessVanDen Jess do you get the full amount that Etsy transfers to you, or are amounts taken out by the banks during each transfer? I read that SWIFT transfer fees could be like $20-$40. Do you get your Etsy payouts daily or do you make it less often to minimise transfer fees? I don't expect to sell huge amounts and I'm starting to be discouraged when looking at the potential costs for operating outside of the US, thanks