Etsy Fees Explained! Cost to Sell on Etsy 2021 | Type Nine Studio

let's talk about etsy fees this is kind of an expansion to my last video about pricing your products for etsy i kind of glossed over the actual fees part because they were included in the calculator that i talked about so today we're going to explain exactly what they are it's important to understand exactly where your money is going and how much you need to account for the fees in your pricing howdy friends my name is abby and this is type 9 studio where i help you start and grow your etsy shop i've been a full-time seller for a year and a half i'm filming this video during the day who am i so many people are like etsy's fees are terrible they take too much money and it's like hmm do it then go ahead go ahead and list your products somewhere else besides etsy let me know how the fees are i'll wait the main point of this video is to educate current and future etsy sellers about the actual fees themselves i've done the math for my shop and my current sales volume versus having a shopify and etsy is actually significantly cheaper but this will vary based on your average item cost your sales volume how you draw traffic on your own a bunch of different factors and etsy and shopify have completely different purposes so it's kind of irrelevant let me know if you want to see a video about the difference at these fees are more than fair in my opinion but i'll save all that explanation for a later time the problem with etsy's fees though is that they don't make it easy to figure out exactly what they are there is nowhere that i could find on any of etsy's help articles and the seller handbook or anything the seller handbook doesn't even mention it it's only in the help articles exactly what the fees are like all in one place you have to go to different articles for the different fees so that's kind of irritating so anyways let's get into the facts so the fees themselves are pretty straightforward even if finding them isn't and just a disclaimer this is for etsy shops in the united states i do not know about other countries you can find these fees listed on etsy's website in the help articles i'll link to them below where they tell the different fees for different countries you can see all the fees and credits to your account when you go to your shop manager and click on finances and then the payment account and that will show you like a little bit towards the bottom exactly what is being charged to your account so you know what's going on i'll be referencing that payment account page a lot throughout the rest of the video so the very first thing is the listing fee this is 20 cents to just post a listing no matter the quantity that you have in that listing this is the only fee that's charged up front unless you pay for extras like etsy plus or etsy ads which i'll explain later on in the video the 20 listing fee is also charged when you make a sale and you have additional stock of that item so each individual item will have the listing fee applied to it until that item sells out so when someone makes a purchase on your shop let's pretend that you sell rings just as an example so if you have one listing and you have two rings in stock you pay the 20 cents up front to post that listing but then if someone buys one of the rings then you will get charged the 20 cents a second time to realist to the second ring this fee will show up in your payment account as auto renew sold or auto renew multi-quantity if you sell more than one of the same item so let's say you have five rings in stock and somebody orders two so you already paid the 20 cents for the first ring when you made the listing and then you'll pay again for the second ring that sold but then you also have another charge to re-list that listing for the third fourth and fifth ring that haven't sold yet this is the hardest part to understand i think on the payment account page but basically you just pay 20 cents on each individual item from what i understand this is so you can't like get around paying the fee if you list items like all in one listing versus having each one in a separate listing like it's all the same no matter how you do it so if say you have 10 items total to list it's the same price no matter if you put them all in the same listing or if you have 10 separate listings hopefully that helps explain it a little bit i don't know you'll also notice an expiration date on your listings and when you post one it'll tell you when it's going to expire each listing is good for four months with the first 20 cent listing fee so if you sell something then that expiration date resets when you make a listing you can choose to have it auto renew or manually renew when it expires so if it doesn't sell in the four months and you have it set to auto renew you'll automatically be charged another 20 cents to re-list it for four more months unless you have it set to manually renew then it won't it'll just deactivate and then at that point you can physically go back in and renew it if you want in case you didn't know this you can actually make private listings if somebody messages you about doing like a custom order you can make a private listing through the messages this is still subject to the 20 cent fee however you do not pay this fee until the item sells which is really nice because a lot of the time um especially for me i don't know if anybody else experiences this i'm sure they do but you'll make a custom listing and then the person just never buys it well then you can't sell it to anybody else because it's a private listing so it's nice that you don't have to pay it until they actually buy the listing you know but the listing fee is a prime example of why i always suggest to make bundle listings you'll still have the transaction and processing fees like i'll mention in a minute but for each bundled item you save the 20 listing fee so like in my shop i have mask and scrunchie bundles so if somebody buys one of those i save 20 cents by having them together all right the next one is the transaction fee i would consider this to be like etsy's cut of the sale etsy is a business as well and they are providing us with a service to list our products and also they do a lot of advertising and have give us access to their millions of built-in customers so the transaction fee is five percent of the total sale it's listed in your payment account as transaction this fee is also charged on top of the shipping cost as well since it's five percent of whatever the customer pays but the five percent that's on top of the shipping cost specifically is listed in a separate line in the payment account i actually made a mistake in my last video about pricing because i talked about the etsy feed calculator that i use and i said i don't use the shipping section of the calculator because i completely forgot that they charged the five percent on top of the shipping so i wasn't accounting for it um so definitely account for that five percent on top of the shipping for my average order it's about 15 to 20 cents so it's not that big of a deal but it can add up hi it's me from the future popping on again to correct myself listen it's been a while since i've set up my shop like from scratch and some things have changed during that process so i'm going to correct something i said in my last video i put it in the pinned comment under that hopefully people read it so here's correct and updated information about the payment processing fee so no matter where you sell if it's in person or online through any platform you're going to have payment processing fees that's just how banks and credit cards work unless you're doing like an extremely high volume of sales this fee is generally the same no matter which platform you use so like etsy shopify square stripe paypal goods and services all those are pretty much the same so my correction was that there actually used to be two different payment methods on etsy so they had paypal and then they had etsy payments and you didn't have to sign up for both but now you have to sign up for etsy payments and verify your account to sell on etsy period there is no paypal option it's all integrated into etsy payments so the payment processing fee across the board now is three percent plus 25 cents and this is shown in your payment account in the same line as the purchase so it will show the total sale and then the fee in red and then the net sale amount and then the you're like running total of how much is in your account so unlike the transaction fee the five percent one this applies to the entire sale like the total amount that the customer paid including taxes and shipping since it's the total amount that the payment was processed for so that was like the base level applies to everyone fees but let's talk about the extras that you may encounter or may choose to encounter first one is etsy off-site ads oh so i honestly hate etsy off-site ads my suggestion is to turn them off if you still can if you make over ten thousand dollars in revenue in a year you can't turn them off so do it while you can if you've never heard of the off-site ads let me tell you about it you might have seen these ads when you're browsing like facebook and instagram and stuff but basically etsy will promote your listings on other websites like on google or facebook instagram and wherever else you can see ads this doesn't cost you a fee up front but if you make a sale from one of these ads then you do pay a fee this is different from the regular etsy ads where you have to pay per click this is just only if you make a sale so it sounds great in theory but the fee for shops that make under 10 000 in revenue is 15 yeah and the fee for shops that are making over ten thousand dollars is twelve percent so gee thanks i believe i've only made one sale from off-site ads i think that was even before i reached the 10k threshold and i haven't heard many other shops say that they make regular sales this way it's only like one or two here and there so it's not a huge deal but it's definitely quite a surprise if you're not expecting it so if you want to have this feature on or if you're forced to like i am it's a great idea to have your profit margin high enough to where you won't lose money if you get a sale from it then we have regular old etsy ads so i actually don't recommend using etsy ads if you are brand new or have very very few sales i can do a whole separate video on that but here's a quick rundown of how etsy ads work so to run etsy ads you actually get to set your own daily budget once you turn the ads on etsy will feature your listings higher up in search while you still have budget left for the day and you pay per click on your ad listings and this will never exceed your set daily budget the pay-per-click rate will vary greatly depending on your niche and what search term you're showing up in the amount of other listings in that category so it's not a set number and each item is going to be different and your budget for the day may get spent down to the penny and it may not you may pay like less than your daily budget so very very brief explanation of why i don't recommend this for new shops etsy ads only guarantee views and not sales if your views on your items don't already convert to sales then bringing more traffic is not going to help that problem it's just going to make it worse and it's a waste of money again i can do more about that in a future video give this one a thumbs up and leave a comment and let me know if you want to see a video all about etsy ads the next i wanted to talk about a few add-on services that etsy has they actually don't promote these much so you may not have heard of them the first one is etsy plus etsy plus cost 10 a month and it has some decent benefits like ad and listing fee credits i think you get five dollars per month in ad credit and some like a listing credits can't remember how many i don't want to say and be wrong you can get slightly more customization on your storefront like you can add more pictures and link the pictures to the um the actual item or the shop section instead of just having the one banner and something that i would be interested in would be the restock request function i've personally never used it but also like etsy ads and other features i would not suggest to use them unless you're already making decent sales because some of the features are not really going to help if you don't already have some sales coming in like the restock request is kind of pointless if you're not selling out of things you know i believe the last thing is etsy pattern i hadn't looked too much into this either prior to researching for this video it's basically just like a shopify site but it's connected to your etsy so like when somebody goes to visit this site it looks like your own website and not etsy you know you can have a custom domain connected to it but i actually have a custom domain connected to my etsy shop so don't need pattern for that but everything on the pattern website is still connected to etsy's back end and you can make separate listings for pattern and for your regular etsy shop this costs fifteen dollars per month and you also have to pay for a custom domain if you want one or i think they give you a like a default domain to use if you don't want to make your own i'm not sure exactly what it is just from what i've seen i've seen other etsy sellers like i've visited their shops who have a pattern and they don't look as professional as shopify websites i would not really suggest pattern if you're wanting to like venture off of etsy and have your own presents outside of etsy it is cheaper per month than shopify i'll give them that but it is not as customizable as shopify and you are still subject to etsy's rules and other fees on top of the 15 so coming back on to update about some things that i found with pattern i was under the impression that pattern was basically just the same as regular etsy marketplace but with the extra fee for selling like on a separate channel like a separate website so for the listing fee like the 20 cent fee you still have that fee if you list items on both your regular etsy and on pattern but there is no listing fee if you just put things on pattern and there's also no transaction fee on pattern as well so there's no five percent fee on purchases made through your pattern site so that could make it cheaper than somewhere like shopify if you're driving your own traffic to it but you are still subject to etsy's uh rules and what you can list on there so i hope this was helpful and i believe that is all of the etsy fees that you need to know about i don't know if there are any more that i didn't mention unless you are in a different country i think different countries have like taxes that you have to pay to etsy because i've seen people in my tick tock comments saying that etsy charges them a lot of taxes i'm like i don't get charged taxes by etsy as a seller in the u.s so i think from what i saw on those articles that i was reading like other countries have some kind of attacks that the like the seller has to pay because here like the buyer pays the sales tax and if i sell to like the eu the buyer pays the vat so i don't know so leave a comment and let me know if you have any other questions or suggestions for future videos like topics you want me to talk about i'm trying to do like shorter videos this week and next week because i'm getting ready for a craft show as you can see i've got all this junk in the background i'm trying to get ready like hurrying and i don't have time to edit like hour long videos just a quick announcement at the end of this video i know i said i don't want to edit longer videos i'm sorry future me a lot of you have asked me to do etsy shop reviews and i am planning to do that once this first craft show is over and i will have information about that posted on my tick tock and instagram and i'll make a another announcement here on youtube once that is all ready to go it is not going to be free just fair warning because i there's no way that i can do that for free because it is a lot of time and if i did it for free it would be like a quick tick tock video and i couldn't do it well in a short amount of time so i want to like actually help and be helpful and that's going to take a lot of my time so i think it's worth it like if i had to start over i would definitely pay somebody to like tell me what's up you know and that is going to be through kofi i will leave my cofi link in the description box it is not filled out or anything i haven't set up anything on it like i think i can take like donations on there like the buy me a coffee thing so if you want to do that i'm not going to stop you i completely forgot that i set this up but if you go to my website type9studio.com it's on the like coming soon mode but you can put your email address in and sign up for my email list and apparently people have been signing up for my email list and i didn't know so um thank you if you went there i did that so i will send out an email as well when that is ready but i'll send out an email when kofi is ready and when um the website is up which is gonna be probably another month or so maybe two anyways this video is long enough if you've watched this whole video and you haven't subscribed yet you might as well i do new videos every wednesday and saturday all about how to grow your etsy shop you can follow me on taketalk and instagram as well both at type 9 studio and i will see you in the next one and in the comments bye [Music] you

Channel: Type Nine Studio

Views: 667

Keywords: etsy fees, etsy fees explained, etsy fees 2021, etsy fees explained 2021, etsy fees for selling, is etsy worth it, etsy seller fees, etsy seller fees us, cost to sell on etsy, type nine studio, etsy tips, beginner etsy tips, etsy ads fees, selling on etsy fees, all about etsy fees, etsy shop 2021, what are the etsy fees, fees to sell on etsy, is etsy plus worth it, are etsy ads worth it, etsy pattern fees, etsy shop fees, etsy seller account sign up

Id: HbSUta4G2tU

Length: 16min 56sec (1016 seconds)

Published: Wed Sep 08 2021