Etsy is a popular e‑commerce platform that allows you to sell your handcrafted goods. Learn about Etsy fees and how much they charge here.
Etsy is an e-commerce website that focuses on providing a marketplace for handmade goods. It enables craftspeople to sell the items they create to a wide and diverse audience they might not otherwise have access to. In order to provide the service, Etsy charges fees for each sale made by the person who lists their items for sale.
The site charges a fee to publish a listing to an online store created by the seller and a transaction fee that's based on the cost of the item and shipping. Selling on Etsy is worthwhile, especially when you combine it with your own e-commerce site on Mailchimp or another website. Combining your own e-commerce site with selling on Etsy helps to reduce the impact of Etsy fees on your sales and expands your customer base. Read on to learn more about Etsy fees explained and how they impact your business.
What is Etsy?
Etsy is an e-commerce platform that is similar to eBay in terms of function but doesn't focus on auctions to help members sell their products. Instead, it allows a seller to put up fixed-price listings of one or more items to sell. The site also allows sales of virtual items such as tutorials, patterns, e-books, and other non-tangible goods for buyers to download.
Etsy's primary focus is the sale of quality handmade goods from designers and craftspeople who make their items in small numbers. It also allows the sale of findings, tools, materials, and anything else that can be used in the creation of a finished item. Mass-produced items are sold on Etsy, but they're not promoted as heavily by the site, and their sale is not encouraged.
It's one of the easier sites to learn how to sell products online, and Etsy helps you promote your products via organic methods and promotions for a small fee. Many craftspeople have turned their hobbies into full-time jobs and businesses by selling through Etsy and their own website. The following Etsy guide is designed to help you learn more about the costs associated with selling on Etsy and why you should consider opening up an Etsy store in addition to your own e-commerce site on Mailchimp.
How much does Etsy charge to sell your product?
Etsy charges a listing fee and a transaction fee for every item you sell on the site. When looking at how much Etsy takes per sale, you'll find that you pay $0.20 for each item you list, and a 6.5% transaction fee for every sale. The listing lasts for four months or when the product is sold. Once the item sells, the 6.5% transaction fee is applied to the total cost of the sale, including shipping.
The fact that Etsy takes a percentage of the shipping cost may seem unfair on the surface. The reason why Etsy takes some of the shipping cost is to prevent sellers from charging a low sale amount and making up for it in the shipping cost. It levels out the playing field for sellers who sell similar items but can't or won't compete against sellers who are trying to avoid fees by marking up the shipping.
What types of fees does Etsy charge?
Etsy charges a few different types of listing fees that should be taken into consideration during your product pricing. You'll encounter these fees throughout your time as an Etsy seller, and it's good to be aware of them, so you don't run into an unwanted surprise. Below are some of the Etsy fees you can expect when selling an item.
Listing fees
Listing fees are a flat $0.20 fee that's charged when you publish your product for sale on Etsy. The fee guarantees your listing stays active for up to four months or until your item sells, whichever comes soonest.
Auto-renew sold fees
In the event your item doesn't sell within four months, or it sells, it's automatically listed again for a fee of $0.20. Etsy automatically sets your listing to auto-renew when it's sold or expires unless you select otherwise when you're creating your listing.
Multi-quantity listing fees
If you’re a seller with multiple quantities of a single item, you can make a single listing with the number of items you have for sale. Etsy doesn't charge a fee for the extra listings until they sell. For example, let’s say you have a single listing with 10 widgets. Etsy will charge you $0.20 for the listing and remove one widget from the inventory. Your listing will be charged an auto-renewal fee of $0.20 for the remaining items as each one sells.
Private listing fees
You can list an item for private sale to a specific buyer. The cost of a private listing is $0.20.
Transaction fees
Etsy's transaction fee is 6.5% of the total cost of the sale. These fees are only collected on products that sell in your Etsy shop, and will be posted automatically to your account once a purchase is made.
Payment processing fees
Payment processing fees are charged on a transaction that uses Etsy Payments. The fees are a set rate plus a percentage of the total sale. The Etsy fees are different for each country.
Is it worth it to sell your product on Etsy?
For many sellers, it's worth it to sell their products on Etsy because of how easy it is to list and the support they get from the site. However, it can be challenging and expensive, especially if you're not selling in volume. You should identify what you want to get out of Etsy before you go ahead and start listing your products for sale. Analyzing the pros and cons of selling on Etsy can help you decide if e-commerce selling on a large platform is for you.
Pros of selling on Etsy
Etsy makes it simple and easy to get started in the e-commerce world of selling handmade goods. The site provides support every step of the way in order to help you find success.
- Easy setup: The web form for filling out a listing is straightforward and makes it easy for you to upload images of the item for sale. You fill out the description, use pull-down menus for descriptions, then pick keywords for the site's search engine.
- Educational resources for sellers: Etsy has a generous library of resources to help sellers get more people to look at their listings and improve sales. It's free and available to anyone who wants to learn more about selling on Etsy. The information also helps learn about e-commerce in general as well.
- Large built-in audience: Millions of people use Etsy every year, and hundreds of thousands of people visit the site daily. Many come to the site looking for something specific, to find something that's unique, or to source supplies for use in their own creations. You don't have to work hard to attract people to look at your listings.
- Ability to review analytics: Etsy's seller dashboard delivers at-a-glance metrics for your listings. You can see the number of listings that are active, which ones have expired, how many people have viewed your listing in a given time period, how many sales you've made, and your sales year over year if you've been on the platform for a while.
Cons of selling on Etsy
There are drawbacks to selling on Etsy, but that's to be expected on an e-commerce site that's intended for anyone to use. You have to consider the cons of selling on Etsy and decide if they're worth accepting in order to sell your products.
- Fees: The fees on Etsy are in addition to the cost of processing a payment. This can take a bite out of your profits, especially if you're selling individual items or small quantities of an item. This can affect your pricing strategy and make your items more expensive than what you would typically charge with no improvement to your bottom line.
- Competition: It's estimated that there are 4.3 million active sellers competing for the attention of 81 million active buyers. That's a lot of people using the site on a daily basis, which means you have to get your listings to stand out to make sales. You may find that you're selling something that's similar to another seller who's more popular and established on the site and make fewer sales as a result.
- Items must be handmade or vintage: Etsy started out as a marketplace for the sale of handmade and vintage items. That focus has changed over the years to allow the sale of craft supplies, non-tangible documents, and images for printing, and some mass-produced goods provided they fit under the allowed goods category. However, if your items are mass-produced, you won't be able to sell on Etsy.
- Limited control: Etsy is a third-party seller that acts as a middleman between you and your customers. That means you can't change how you accept payments, accept changes in fees, and abide by the site rules. If a customer has a dispute, you have to go through Etsy for resolution.
Sell products with Mailchimp
Selling your handmade or vintage goods on Etsy helps you raise awareness of your business and can bring in more customers. However, because Etsy is a third-party platform, you will be responsible for paying Etsy fees that can dig into your bottom line. To avoid this, you can create your own e-commerce store and sell directly from your website, which can be made possible with Mailchimp’s website builder.
Mailchimp offers e-commerce software that helps you build an online store, manage your inventory, track your sales, and support your shipping efforts. It's affordable, easy to use, and you gain access to Mailchimp's educational materials for marketing. The only fees you pay are for your URL, website hosting, and a small transaction fee for each sale. In turn, you learn how to build your e-commerce site for free and keep more money in your pocket for each sale you make. What's not to like?
