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.
Here's the breakdown of fees for selling on Etsy:
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.
So how do you save money while selling on Etsy? Here are some Etsy seller tips to help you:
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.
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 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.
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.
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.
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.
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.