How Much Does It Cost To Sell On Etsy

Did you know that the Etsy marketplace has an average of 377.4 million visits every month? 

Etsy has become a popular online marketplace in the ecommerce space with at least 2.1 million sellers and around 43 product categories. 

Perhaps you're a small business owner and are wondering - is selling on Etsy worth it? What is the cost of selling on Etsy? 

Well, read on as we break down the different Etsy seller fees involved in selling with Etsy. In addition, we will look at some effective tips for selling on Etsy. 

How much does it cost to sell on Etsy? 

Here's the breakdown of fees for selling on Etsy: 

Basic fees 

• Listing fees: Etsy charges sellers a flat fee of $0.2 for each listing put up on the Etsy marketplace. Etsy listings expire every four months. This means you will need to pay another $0.2 for renewal fees. Also, if a customer purchases multiple units of a product, they will be charged $0.2 for each unit. 
• Payment processing fee: Payment processing fees cover the costs of dealing with bank transactions and credit cards using Etsy Payments. This is 3% of the sale including tax and shipping for an Etsy seller in the U.S., plus a flat rate of $0.25. (transactions in other countries may vary in payment processing fees) 
• Transaction fee: When you make a sale on Etsy, you are charged 6.5% of the total sales price. 
• Shipping transaction fee: Etsy also charges 6.5% of the total shipping costs your customers pay. 
• Pattern fee: Pattern is a software that allows you to build a personalized storefront including domain name, color, logo, and website layout) to sell your products. This costs $15 monthly with a 30-day free trial. 
• Currency conversion fee: For international transactions, you will be charged 2.5% of your total sales price as a currency conversion fee. 
• Regulatory operating fee: Sellers in selected countries are charged a fixed percentage of total sales prices apart from other fees due to the increased cost of operation in these countries. Some of these countries include the United Kingdom (0.25%), France (0.4%), Turkey(1.1%), etc. 

Optional fees 

• Etsy Ads/Promoted listing fee: If you're promoting your product within the marketplace, you will need to pay onsite Ad fees. Ads are based on pay-per-click and can vary depending on the budget and demand. 
• Offsite Ads fee: The Etsy Offsite Ad program allows sellers to promote their products on sites like Google and Facebook. When a customer clicks on your offsite ad and purchases your product within 30 days, you are charged either 12% or 15% depending on your annual sales. Etsy sellers who have annual sales of under $10,000 are charged 15% while sellers with over $10,000 in annual sales are charged a discounted price of 12%. 
• In-person selling fee: if you have a physical store, you can link it to your Etsy listing using Square. However, if you sell with Square without syncing it to your Etsy seller account, you will be charged $0.20 as a “Square Manual” fee. 
• Etsy plus fee: This is an optional package that offers perks like Etsy shop customization, accepting restock requests directly from your shop, discounts on custom shipping boxes and business cards, etc. This costs $10 per month.

What percentage does Etsy take from you? 

As we have seen from the breakdown, Etsy seller costs could go as high as 20% of your total costs. This includes transaction fees, listing fees, payment processing fees, and so on. 

For additional features like offsite ads, Etsy will also charge another percentage of your sales prices. 

However, in general, the higher your sales price, the lower the percentage of Etsy seller fees. 

Ways to save money when selling on Etsy

So how do you save money while selling on Etsy? Here are some Etsy seller tips to help you: 

Increasing your product’s prices 

Some sellers set low product prices which ultimately leads to lower profits. One way to save money on Etsy fees is to increase your product price by considering labor costs, the cost of tools used, and other factors. Not only can you save money on Etsy fees, but you can also increase the perceived value of your product. 

Choose which listings to promote on site 

Promoting your listings is one way to increase visibility and increase sales on Etsy. However, Etsy ad fees could accumulate quickly if not properly controlled. You can promote the listings that bring in the most sales and turn off the others. 

Cutting shipping and production costs 

Cutting production and shipping costs are other ways you can cut down on selling on Etsy costs. 

For example, you can choose to use high-quality but cheaper raw materials or buy in bulk to get a discounted price. 

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Offer free shipping 

Etsy charges shipping transaction fees based on the total cost of shipping. By offering free shipping, you can cut down on Etsy fees. On the flip side, customers love free shipping. With free shipping, you can expand your customer reach and increase sales. 

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Is selling on Etsy different from Amazon? 

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Both Etsy and Amazon are popular selling platforms that can help business owners grow and scale their businesses. 

However, both differ in fees, payment processes, fulfillment processes, and so on. 

On the Amazon marketplace, sellers do not have to pay listing fees. On the other hand, Etsy sellers pay a flat rate of $0.2. However, Amazon charges selling fees of around 15% while Etsy charges 6.5%. 

Generally, Amazon is more competitive and can take some time to yield returns on investment. 

If you sell creative crafts that are affordable, Etsy may be the perfect selling platform for you. 

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How to know if selling on Etsy is for me 

So is selling on Etsy worth it? Well, this relies on some factors.

As a business owner, you want to consider the value you are getting from the platform as well as your profit margin. 

Evaluate your costs and subtract them from your selling price to get an idea of what your profit margin will look like. Many sellers are able to navigate Etsy seller costs and make a good profit. However, if you are a low-volume seller and can't navigate through the cost of selling on Etsy, you may want to consider other alternatives. 

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Wrapping up  

Etsy fees are quite competitive. However, you can make a good profit if you are willing to invest some time and effort. Keep an eye on the costs and work on building your brand. 

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