The Real Fees with Etsy
Wondering what’s up?
We’ve had a shop on Etsy for a few years now, but after revamping our financial software and seeing what DIDN’T make it into the bank, we were shocked at the 25.38% fees!
“But I thought Etsy fees were 5%”.
So did we! But as of April of 2022 they decided to charge not only 1.5% more, going from 5% to 6.5% but to also make sure they get 5% of our shipping fees as well, whether we ship through their platform or not (which we do not). Then let’s add 12-15% for ads both onsite and offsite and the grand total of fees is 25.38%!
For our customers with businesses, listen up!
If a product costs us $25 to make,
And we charge $50 on Etsy,
They will automatically put it as “Free shipping over $35. (Yes we can turn this off but it will affect our search ranking).
So now we make $25 profit, sounds good right?
Nope… take out shipping $9.89,(remember it’s “free”)
Then take their overall $25.38% off the original $50
We’re left with what? $3.91…..would that be okay with you?
Try this calculator if your business sells on Etsy as well. Etsy Calculator
We here at the Factory can’t live on $3.91.
The homecoming mum industry is hard enough with the students, the parents, the Karen’s, the rising costs of everything, and now this?
Our suggestion, use the calculator to help, however if you roll in your costs, Etsy will make more and more, BUT eventually you’ll find that sweet spot where you’re both happy. It seems that Etsy will charge LESS fees the higher priced the item is. Take that for what it’s worth but please don’t lose your hard earned, no sleeping for three months, let the house go to waste and the kids eat frozen dinners, money and give it to them without making yourself more than you’re paying them.