Etsy Fees for the Digital Seller || Pricing Digital products for etsy

shipping costs payment fees listing fees there's just so many different fees and things to think about when you decide to list a product on etsy today we're gonna break it all down we'll go over what it's gonna cost you to put every single item on etsy and what kind of profit you're going to make with those items we'll talk about how to price your items and just understand all the mechanics behind the scenes with etsy welcome back to more designs where we go over everything from using to making to selling digital planners if that's something that you're interested in take a second to subscribe to this channel and support us by liking this video so today i'm going to jump onto my computer in a minute and kind of walk you through all the ins and outs of all the payments and behind the scenes fees of etsy but just know overall it feels like a lot when you start to look at it but when we break it down by one product at a time it's actually not that bad and you have to keep in mind that etsy is bringing traffic to you there are other options for opening up a shop and as you grow they're great to pursue but when you're just getting going and you don't have a huge following by being on etsy you're actually having traffic driven to you about 50 of my customers are coming from etsy and 50 are people i'm bringing in so a big piece of why etsy is taking that money from you you're getting things in return so today let's hop on over to my computer together so today we're going to walk through my shop a little bit talk about some of the fees talk about what that looks like and just really understand the background of the money side of etsy so to start i'm going to jump into my shop manager just to show you where all this information is because i think sometimes as a new shop owner it's good just to study all that so when you're in your shop manager dashboard if you go to our community and help tab you're gonna see that there's a lot of resources here but the site policies is one of the greatest places for you to check out once you're on there you'll be able to check the sellers tab and you're gonna have everything you need to know in terms of the logistics of owning an etsy shop so within here there is a section called fees payments and policies and this is where it's gonna break down all the different money that's coming in and out of your account for one reason or another as you're selling products there are a lot of different things that can happen with your products in terms of fees that come out i'm gonna go over the major ones today we're gonna kind of do the big overview for what most of your sales are going to look like so within this listing the first thing you'll see is that every single listing is going to have a 2010 listing fee and what that means is every single time you put an item on your etsy shop you are paying 20 cents to have that item on there this is why when you first open your shop it's actually going to cost you 20 cents to open your shop because you have to put at least one product up if you're putting 10 products up it's going to cost that 20 cents 10 times so the next big thing that they're going to do is they're going to take a cut of your profit and this is kind of their convenience for operating etsy for you for driving traffic to you and everything else in between so everything that you sell they're going to take five percent off of that sale to keep for themselves and this is five percent right off the top so whatever price that you're putting in if i go back to my listing whatever price i'm putting in here they're going to be taking five percent off whenever i sell this product to keep for themselves the last two things that i wanted to talk about were payment processing and shipping fees now shipping fees i'm not going to spend a lot of time on because most of you are selling digital products which means this does not affect you when i first started my etsy shop i was doing physical stickers so that was one thing i had to calculate in whenever i was figuring out what price to put my stickers at because i needed to make sure i had enough money to ship my product and still make a profit but digital products we don't have to worry about that which means they can't collect that fee from you the other one that they are going to take from you is a payment processing fee whenever you're using things like your credit card and all that kind of stuff that credit card companies are actually charging the company to be able to use their credit card and their service and everything like that which is why gas stations now charge you to pay with credit as opposed to cash um so essentially etsy is putting that back on us so if you sell something yes they're going to take care of collecting the money sending the money to your bank account or whatever your payment that you've set up but they are going to charge you a certain amount on top of everything else just to take care of all that now this one is a little bit more complicated because it isn't a flat fee for everyone it's actually different based off of where you are so again this is why it's so helpful to dive into etsy's policies and really understand it for where you are and what you're selling and everything else and this is going to be based off of where you are selling from so in my case and just from my youtube analytics for most of you guys i know as well we're selling from the usa i do have several viewers overseas but the vast majority of you of you are in the us so do take a second to check this out it breaks down every single area what it's going to charge you and what it's going to charge you based off of that amount so in this case if i scroll all the way down to united states so every time i sell a product i'm going to be charged three percent and then an additional 25 cents so these are your three big things that etsy is going to take out they're going to take out your listing payment processing and then their cut of the money on the surface it looks like a lot i want to break down what that actually translates to within a product so i'm going to go back to my shop and i'm gonna pull up my payment amount tab and this is actually something that has changed with how they deal with your money and basically what they try to do is they try to track it all and do all of it internally and then just give you your profit it used to be it used to be that you would pay all the fines and processing and stuff out of your bank account or your credit card and then later on they would send you the money so now it's really nice you actually don't end up paying etsy very often at all so long as you're making consistent sales because they're just going to take it out of the money that they owe you and their dashboard in my opinion is super easy to understand i kind of trust etsy to do the work and i just keep an eye on my overview so they're actually going to break down how much you're making versus how much you're spending on their things so do keep in mind if you're making a physical product etsy doesn't know how much you're spending on your physical product materials but in terms of digital my profit's sitting right in front of me on their finance dashboard you're going to see a simple spot where it goes how many sales are you making and then how much are you giving back to etsy for one reason or another and then they break it down as to every single time what that means and what that looks like so in this period of time i spent 13 dollars and 20 cents just on listing fees and so that's relisting or listing new products for the first time i still have a few physical products in my shop and i'm gearing towards fully digital but i do have three dollars and 20 cents worth of shipping costs still on here and then i also have the six dollars and 12 cents first six dollars and 12 cents for transactions so we we're gonna dive into an item and understand where every single piece of that is coming out but just know you have a cheat sheet right here you don't have to be doing all this calculation and understanding all these pieces once you get a handle of it you can jump on here and see okay i made a hundred and fourteen dollars spent twenty two dollars i know it took this amount of dollars to make my product i'm in the grain that's what matters so etsy is actually going to break down every little piece of what's happening here they're going to show you what fees and taxes they take out they're going to talk about what your balance is on your overall account and you can see what money they're going to send you so i want to look at one of my transactions that was more simple so i'm going to look at this five dollar listing where i sold this procreate stamp set and i sold it on the 23rd so you're going to see first off because i sold it etsy immediately wanted to put it back in my shop so the first thing etsy did was they sold it to that person and then they put it right back on my shop and therefore charged me that 20 cents and that's going to happen every single time salons quantity is still above zero so the first thing that happened when i sold it pepsi charged me 20 cents the next thing etsy did was etsy took charged the customer five dollars which is the cost of this particular item and then they took off 40 cents so that 40 cents is my payment processing fee so if you take five dollars and i can't even pull a calculator if i take my five dollars and multiply 0.03 for that 3 i get 15 and then i'm going to add in that 25 cents because if we remember is 3 plus 25 cents and that's where my 40 cents comes in so etsy charged the customer five dollars that five dollars is now mine but etsy pulled out of that five dollars 40 cents because that 40 cents was their processing fee for my product so that left me with four dollars and 40 cents now after that there's one more fee to take out which is their cut that five percent so again if i pull up that calculator five dollars times .05 is 25 cents so you'll see they also took out that 25 cents so for my five dollar listing i walked away with four dollars and 15 cents what that means is you need to think about your pricing based off of all of those fees that are getting listed on top of this so i want to talk a little bit about how i've priced things in the past because it looks different for digital products versus physical products first thing you need to consider when pricing your items is how much is it going to cost you to make the next thing you want to consider is making your prices competitive now one of the mistakes i made early on was my mindset was my shop only has 30-something sales i want more sales i want more reviews i'm gonna make it cheap so people come in and buy it it doesn't work because when they see that your prices are cheap their mindset goes to these are cheap products so really price your products for what they're worth so for example i'm actually getting ready to release a new set of digital stickers later today so by the time you're watching this they will already be live i always like to look up what other people are selling that product for so in this case they're actually weight loss digital stickers and then i can start to see what other people are selling similar products for so right here i see a product that has 500 fitness stickers which is amazing my set is actually only 100 stickers um but the other thing is think about what you're actually making so when i pull this listing up it is a ton of stickers but a lot of it is the same sticker multiple times in different colors it looks like there's a whole bunch of just simple boxes with to do to pay so like not all of those took a ton of time to create whereas some of these boxes would have taken much longer to create so that's one thing to put in the back of your mind is effort time and effort for it um but 500 stickers they're gonna sell them for 6.44 if i go back i can pull up another one so this looks like a much smaller set and actually the seller did not tell me how many stickers there are but just eyeballing it i don't know maybe 20. another listing but these i will say a lot of these look like much more detailed things i mean they have actual people in them i can't draw people so that's not mine i'll give you that much but some of them are more just words as well so if i look at this one this really doesn't have any hand-drawn ones it looks like and is 249. as i'm flipping through this i'm seeing that there is a range it looks like the low end is this 250 it looks like as we get higher end we're talking about like eight dollars give or take so i want to think about pricing my product probably not in the 250 range that one's really low i'm probably gonna be looking at more around the five dollar range because my set is like i said i do have 100 stickers in my set and a lot of them are hand drawn so i'm thinking probably more towards the five dollar range the other thing i always do is i do this research before i'm totally done and ready to list the product because sometimes i will pad out my products a little bit more so that i can be more competitive with with what's out there rather than bringing my price down let me explain to you what i mean kind of by padding out my product a little bit so this is actually the printed physical set of stickers that i started with and i wanted to start to digitize them and originally when i turned them into a digital sticker and thought about selling them i started re-looking at some of them because i had to change it a little bit so like here for example i have six of these dumbbell stickers well we all know that when you're digitally planning there is no reason to duplicate the same sticker because the person can reuse the same png over and over and over again so all of a sudden those sit those six stickers became one same with my eight weigh-in stickers little by little i was taking stickers out i was formatting all of them and i was discovering i really kind of had somewhere i think around 20 stickers and that was just nowhere near enough if i listed 20 stickers i was gonna have to list them for maybe two dollars and i really wanted to make this a bigger set so instead of just taking that and listing it i turned what was a set of around 20 stickers into a set that's over a hundred stickers and that's going to allow me to list it for a much higher price and you'll see that's what other people are doing in here when they're padding it out with some more simple stickers so if i were to go back to that first listing we looked at you can tell that this person has made some amazing hand-drawn stickers i'm not gonna lie this washi tape with the weights is adorable i kind of want that sticker just from the set now for honest this hand the silhouette of someone running probably took her some time to create this round sticker with a heart in it probably took two seconds but by adding that round sticker with a heart in it you can then list it by saying 500 stickers so there are some easy ways to kind of pad out your product so that you can charge an amount that's going to give you that end profit in the end it is worth thinking about how are you going to be competitive and at the same time how can you make your product worth the amount that you want to charge it so in the end as you're pricing your products and getting your products up on your shop there is so much to think about in terms of the money and the behind the scenes thing the biggest thing you want to make sure in terms of etsy fees and processing is make sure you're going to make profit in the end make sure that as you're pricing your items you know that the amount you're going to take back from it is still going to earn you money the other thing you want to make sure you're doing is that you're competitive with other people that are in your field and to do that i always just go on etsy search what other people are doing and kind of study those products you will get the hang of it before you know it you're going to be making money on etsy i can't wait to hear about your journey and i can't wait to continue this series on etsy where i dive into some of the things i'm learning along the way make sure you subscribe so that you don't miss another video bye for now

Channel: MOR Designs

Views: 2,627

Keywords: etsy, Etsy Fees for the Digital Seller, selling on etsy, etsy fees, etsy payments, sell digital products, digital products on etsy, etsy digital download business, selling digital products, etsy fees explained, sell digital products on etsy, all about etsy fees, selling on etsy fees, fees on etsy, etsy shop cost, digital products to sell online, digital downloads on etsy, digital products to sell on etsy, how much are etsy fees, etsy pricing, etsy digital products

Id: 1fst9-IiX1M

Length: 14min 52sec (892 seconds)

Published: Wed Feb 03 2021