Etsy's Fees, EXPLAINED!

hi welcome to at home pixels I'm Terry Brooks and today we're going to be talking about Etsy and how much it costs to start an Etsy shop we're gonna go over Etsy's fees so that you know what to expect when you put a product up on Etsy and when you sell a product so that you can price your products properly we're also gonna talk about different things that you need to keep in mind when operating your shop we're gonna talk about things like shipping costs and your product costs and things like that and then we're gonna end was talking about how Etsy collects their fees so I've been on Etsy for over five years and I've had a few shops within those years so I understand how the fee structure works and it can be confusing so I'm going to break it down super simple for you so that by the end of this video you understand exactly what you're getting into before you even begin your Etsy store so let's get started okay so the first thing that XE is going to charge you on is a listing fee and a listing fee is 20 cents so you can expect every single time you lift something then it's gonna cost 20 cents so here's the thing with a 20 cent listing fee every single item that you add onto your store will cost 20 cents to put onto Etsy which is a pretty good deal but it is a recurring fee if that item sells again and again and again when you go and set up a listing you'll have the option to choose whether you want it to renew automatically or manually when you choose to have it renew automatically every single time that one product sells it's going to include a 20 cent listing fee for it to renew itself on your Etsy shop if you do it manually then you'll have to go through and pay for that 20 cent listing fee every time you list it all of my listings are automatic but it kind of depends on what you're selling if you're selling something that you can sell over and over and over then having the automatic option works really well but if you only have one specific item then it doesn't make sense to have it renew especially if it's a custom and unique item that you only have one of so there we have it we have 20 cent listing fee and that's going to recur automatically if you have the automatic option on there okay so the next feed that Etsy is going to charge you is when you sell an item it's going to charge you 5% of a transaction fee okay so it's gonna charge you for 5% of what the transaction is and I'm going to break this down in a little bit so that you really understand what that really Intel's and then they're going to charge you 5% for your shipping fee so in other words if you have a 16 dollar product that you sold it's gonna take 5% of that and then it's going to take 5% of the shipping costs so let's say your product is 16 dollars but you're shipping it for $4 it's gonna charge five percent on that $4 shipping price okay so there's one more feed that they're going to charge you and this is their payment processing fee not as 3% plus 25 cents and this is for payment processing and we're gonna break this down here in a minute so that you understand again what this means basically what the payment processing is is that whatever Etsy uses in total of what that price the customer paid for they're gonna take 3% plus a quarter out of that whole payment so it seems like a lot but it's really reasonable Etsy is still a really reasonable place to sell your product and you really do have low fees and they don't really have monthly costs they do have some programs that are coming out and some that they have that have kind of upgraded features that have monthly costs I personally don't use them I'm kind of waiting to see if they have some good features that really compel me to use that but for right now you don't have any monthly cost you just have these transaction fees for whenever you list something and then whenever you sell something so it's actually a pretty good deal overall okay so let's go through an actual example that happened on my Etsy shop Eric designs so I sell vinyl decals and recently I sold a flamingo decal the Flamingo decal cost $16 I then charge four dollars for my shipping costs then the customer pays for taxes which was 96 cents which brings our total to twenty dollars and 96 cents okay the next thing that XE is going to do is they're going to take out their payment processing fee which is three percent plus twenty five percent so in my case that was eighty-eight cents and that's going to bring our total to twenty dollars and eight cents so the next thing Etsy is going to take out is their transaction fee on the product price and then the transaction fee for the shipping price so the transaction fee for the product happens to be 80 cents and the transaction fee for the shipping was 20 cents so now we are at 1908 okay then there's one more fee the Etsy is gonna take out and that is the listing fee which is 20 cents so now we're at 18 dollars and 88 cents now some other things to keep in mind is this is not my bottom line I'm going to end up paying for shipping on top of that which is going to be about three dollars it costs money to buy the label from USPS UPS FedEx wherever you're buying it from and then it costs money for the box it cost money for the tape I pay for a printer and labels and all of those things so that's where my four dollars comes into play so when you're pricing your items just keep in mind these fees that you're going to experience keep in mind your shipping costs like the boxes on the tape and the printing labels and all of that that I just described keep in mind any other expenses that you may incur so I didn't make this flamingo decal my employee made it and so I have to pay her I also pay for the vinyl and I pay to get it shipped to me and I pay for the transfer tape and I pay for the tools and I pay for my vinyl cutter and I pay for my computer and the internet there's a lot of other costs that you need to factor in when it comes to creating your price if you want to learn more about competitive pricing go and check out my six tips video where it talks a little bit more about the pricing and how to price competitively so then one more thing is how Etsy collects their fees Etsy collects their fees automatically because they're getting paid on this twenty dollars ninety six cents and then they're just taking this out right away so it's kind of nice because you don't have to worry about a bill at the end of the month or at the end of the billing cycle whatever it is you're it's always just gonna come out now the only time that Etsy will actually charge you is if your fees are more than what has been put into your shop payment so recently I just opened up a new Etsy shop and I am selling downloadable products and I listed about 20 products about a month ago and each product cost me 20 cents lists now if I didn't make any sells then I would be required to pay at the on the twenty cent listing fees and they would charge my credit card for that however I did make three or four cells within that billing cycle and so those cells helped cover the cost of all the listing fees thank you so much for watching please let me know if you have any other questions please like and subscribe I have other Etsy videos here on YouTube and then go check out my website at home pixels comm and there I have more information about Etsy about how to sell on Etsy and how to be successful on there and how to get your shop started on the right foot thank you so much and we'll see you next time bye [Music]

Channel: At Home Pixels

Views: 25,837

Keywords: etsys fees explained, how to etsys fees work, how much is it to start an etsy shop, etsy shop cost, etsy fees, what are etsy fees

Id: LfIF28uD1FU

Length: 8min 42sec (522 seconds)

Published: Wed Dec 18 2019