Last Updated on 2 months by Selen Cetin
Etsy, which makes the difference between e-commerce platforms, hosts sellers from many countries. The main difference between this platform and others is that it emphasizes handmade and personalized products rather than mass production. Moreover, not only the sale of physical products but also the sale of products to you takes place through this platform. Downloadable content is brought together by customers from around the world. Therefore, it is one of the best addresses for artists, craftsmen, and designers.
The platform, which stands out with its advantages, brings to mind the question of how much the Etsy seller fee is. Although the charges vary according to the region where the seller is located, they are basically divided into mandatory and optional. Mandatory payments are the fees that Etsy charges per sale. The optional ones are the Etsy seller fees paid through campaigns to expand the customer network and attract more visitors. Optional payments offer a great opportunity to increase the visibility of the store and make more profits. But the important thing is to set a suitable budget and campaign with appropriate steps.
At this stage, a performance marketing agency will benefit from their experience. In this article, how much Etsy seller fees are and under what conditions these fees are requested are discussed in detail.
What is Etsy?
Etsy is one of the most popular e-commerce platforms. Although the logic is quite similar to eBay, there is no possibility of auctioning on Etsy differently. The difference between Etsy and all other e-commerce platforms is the sale of digital products as well as physical products. These digital products mostly consist of virtual items such as e-books and downloadable content. In this way, artists, craftsmen, and designers have the opportunity to sell their products.
Etsy is a platform that puts handmade custom products at the forefront in general and supports the sale of them. Although it is the sale of products with mass production, it does not stand out as handmade products. Online selling of products is quite easy; all sellers have to do is sign up for this platform and put their products at the forefront for a certain fee.
Etsy Seller Fees
Unlike some e-commerce platforms, Etsy is free to register as a seller and open a store. Although this is quite advantageous, there are some mandatory and optional payments after becoming a seller. The pricing of these payments may vary depending on the currency of the region you are in, how much you are trading in total, or the region you are in. Etsy seller fees are made through Etsy payments. The account you create here matches your Etsy account, and payments are automatically deducted. Mandatory and optional payments that sellers should make are discussed below.
1. Mandatory Etsy Seller Fees
On Etsy, you created a vendor profile, opened your store, and made your first sale. Congratulations! Although everything is free so far, there are some mandatory fees that you have to pay when your products start to be sold. These are referred to as mandatory Etsy seller fees, and these fees are charged in three categories. Although listing fees are a certain amount, transaction and Etsy payment processing fees are demanded in a certain percentage according to your sales.
1.1. Listing Fees
Listing fees, among the Etsy seller fees, are the fees paid for each item added to the store. In this way, the product is registered on the site for 4 months and allows editing without additional cost. Etsy charges a flat fee of 0.20 USD per product list. If there is more than one product after making a sale, the same rate of charge is applied for this. Although the payments are over the US dollar, this amount is converted to the currency of the region to which you are connected. 4 months after the product is listed, there is an automatic renewal, and the same amount is withdrawn from you.
1.2. Transaction Fees
Another Etsy seller fee is transaction fees. There is a transaction fee of 6.5% for every sale you make. This fee is a percentage of the cost of the shipping and packaging process and is reflected by the seller as well. If the seller uses Etsy payments, this fee is automatically deducted on each sale.
1.3. Etsy Payment Processing Fees
The product sale not only includes transaction fees but also Etsy payment processing fees. This Etsy fee may vary depending on the tax or VAT of your region. Usually, a ratio of 3% to 4.5% is taken. To give an example for the USA, this rate is calculated as 3% + 0.25 US dollars. It is possible to check the remuneration policy of your region through the Etsy help center. All of these fees are Etsy seller fees that must be paid.
2. Region-Specific Seller Fees
Since Etsy is an e-commerce platform, it is home to sellers from all over the world. Therefore, depending on the regions where the sellers are located, there may be additional charges or some changes in fixed Etsy seller fees. The factors considered here are the currency and home tax situations of your region. Below are the fees requested by different regions.
2.1. Currency Conversion Fees
If you sell in a different currency on your product listings, Etsy requires a certain rate to convert it to the currency of your region. There is usually a 2.5% currency conversion fee. If these Etsy seller fees and payments are used, they are automatically purchased from the seller. This rate is not paid when a payment network such as PayPal is used other than Etsy payments. Therefore, the payment network used is very important.
2.2. VAT and Sales Tax
Etsy sellers from certain countries and the European Union region are responsible for VAT or sales tax payments. In addition, some countries also charge a VAT on the payment processing fee. Sales taxes may vary according to the US states. You just need to check the Etsy help page to find out if your area is subject to such a charge.
2.3. Regulatory Operating Fee
Within the scope of digital service data policies, certain percentage fees are charged in some countries. These fees are known as Etsy seller fees, which are requested to balance with face-to-face sales fees. Considering factors such as shipping, packaging, or personalization, a fee is charged on the total cost of the product. This fee is set at 0.40% for France, 0.25% for Italy, and 1.1% for Turkey. You can check the Etsy help page for charges in other countries.
3. Optional Seller Fees
In addition to the mandatory charges, there are also the optional Etsy seller fees. These fees are those that are paid by the seller to bring the products in the store to the foreground and support further sales. It can be very advantageous, especially for certain campaign periods. Optional charges are summarized as follows.
3.1. Subscription Fee
Etsy is a standard free offer, but this website also offers a paid offer like Etsy Plus. This Etsy seller is designated as charging $10. In this membership system, although your products do not rank directly at the top, they offer additional features and discounts that will help to grow your store. In this way, you can indirectly increase traffic to your store.
3.2. Shipping Label Fees
One of the charges included among Etsy seller fees is shipping label fees. Etsy offers a discounted post tag fee. This mailing label is preferred to personalize your products and improve the customer experience.
3.3. In-Person Selling Fee
On Etsy, in-person selling is partnered with Square Reader. Therefore, it is possible to synchronize your lists with Square at no additional cost with the $0.20 you give in the listing fee. When you do so, you will be exempt from the 6.5% fee that you must pay for the transaction fee. Instead, you pay the transaction fee that is implemented by Square and is more cost effective. This range varies from about 26% to 3.5.
3.4. Pattern Fee
Instead of creating your own website, you can open an Etsy store at a lower cost. The Etsy pattern feature allows you to design a custom store for yourself. After a 30-day free trial, there are $15 monthly Etsy seller fees.
3.5. Etsy Ads Fees
You may have to pay Etsy advertising fees to reach a wider audience and bring your products to the forefront. In this way, the ads you choose fall in front of potential customers and come to the forefront in areas such as search results and category pages. Etsy offers options between 1 to 25 USD per day. Among these options, it is possible to increase the visibility of your products by choosing the option that best suits your budget. All you have to do is learn how to create an advertising campaign with Etsy Ads and interpret your measurements correctly.
3.6. Offsite Ads Fees
Advertising not only within Etsy but also outside the site helps you reach a much wider audience. Offsite ads, one of the excellent ways to increase visibility, are quite useful. It is possible to use these ads to promote your store and products on social media channels and search engines. A multi-channel strategy is an element that makes it easier for you to reach your target audience, but there are many details to be considered. Otherwise, these seller fees can be a waste of money.
SEO knowledge is needed to make a profit through off-site ads. The appropriate label, photo, and description should be created for each product. For this reason, getting consulting from a content agency can significantly increase the profit rate you will get.