Hi, this is Anne with Graphic Design How To, and today I'm going to tell you all about Etsy fees.
Now if you found your way to this video, you probably are looking at starting an Etsy shop,
but you want to know how much it's going to cost you...and this will not include advertising fees.
I might cover that in a later video though. And I also want to say that if you are planning to
start a shop, I have a link in my description where you can get 40 free listings from Etsy,
and I will also get 40 free listings! So it's great for you, and it's great for me too!
All right, let's get started. Okay, so generally speaking, for most of us in 2020, Etsy charges,
#1, a listing fee of 20 cents. So when you list a new item, you're automatically charged 20 cents.
And by the way, this is not my listing. So this 20 cent fee is before anyone buys it, and it's good
for four months, or until somebody buys the item. So if the listing sits there for four months, and
no one buys it, it will expire. And then if you want to relist it, you can have Etsy automatically
do that, or you can do it manually, but either way, Etsy is going to want another 20 cents.
Now, if your item sells, and you list another - you have the exact same item or just another item
in general - you're going to be charged another 20 cents. So you can have, say, a PDF of something
you're selling, you can have your quantity set to like 100. But every time it sells, you're going
to be charged 20 cents when you relist it. And so your stock, for example, would go to 99, and
you'd be charged another 20 cents. There are also fees called Auto Renew and Multi Quantity fees.
But those are actually just listing fees. So Auto Renew is when you set a listing to auto-renew
if it expires, and that means you're going to be charged that 20 cent fee, like I mentioned
earlier. Multi Quantity is the same thing. So let's say somebody buys three of the exact same
hairbow. For example, Etsy sees that as three renewed listings. It's all the same concept
but with different names. So just know that if you list something, you'll be charged 20 cents
and that fee is once per listing or per quantity every four months or until it sells. You're not
going to be charged 20 cents three times for the same single item or anything like that.
The second fee is a transaction fee. This one comes only when you sell something, and it's 5%
on the cost the customer paid + the shipping. If you have a sale going on in your store for
1/2 off, say, you'll only get charged 5% of what the customer paid in total,
not the price before sale and coupon. The third fee is the Etsy Payments fee.
This fee comes from using Etsy Payments system, which is called Etsy Payments. If you're in the
list of countries that accepts Etsy Payments, you HAVE to have Etsy payments as an option in your
shop. Here are the countries eligible for Etsy payments. It is a lot of countries. So there's
a really good chance that you will probably have this fee, and you CANNOT opt out of Etsy payments.
If you're not, there are some other payment options available for you, and you won't
have to pay this fee. But in the USA, the fee for using Etsy payments is 25 cents plus 3%.
The percentage is based on what your buyer paid, so it includes shipping. Okay, let's look at a
couple of examples. Let's say I live in the USA and I want to sell some agate earrings.
By the way, all the listings that you're seeing in this video are just ones that I happened upon, I
don't know the sellers or anything like that. I'm going to fill out my listing, and I'll put my sale
price at $45.20 with free shipping. Now once I hit Publish, when I'm in the back end creating this
listing, I'll be charged 20 cents right off the bat. Now let's say this sits out there for a week,
and then someone buys it. So here's the fee breakdown. I'm including that original listing
fee, even though I've already paid it, because I want to include all the fees for this listing.
So we'll have $45.20, which is the total + shipping, we'll have our listing fee of 20 cents,
the transaction fee of $2.24 which is the 5%, and then $1.60 which is the Etsy payments fee.
So for this $45.20 listing, I will get $41.16. So Etsy takes about $4 in this case.
Now normally whatever your shipping comes to will be deducted from your profit.
But in the first example we don't know what that shipping would come to because the seller
has decided to cover it. And taxes and VAT etc. are not included here. But long story short,
Etsy collects those for you, and sends them where they need to go. So they're not something you have
to worry about if you use Etsy Payments, which probably at least 90% of you will. Now let's look
at another item. This one does have a shipping fee, and it's on sale right now for $12.12,
you can see you're saving 30%, you're saving $5 right off the top, and that's a sale that is
being run by the store. Now this designer is only offering free shipping when you spend $35 or more.
And let's say we don't want to do that, so we're going to be paying the shipping fee.
I've already figured out what that is, and it's $3.31. For this shirt, the total plus shipping is
$15.43. We've got a listing fee of 20 cents, the transaction fee of 5%, which is 77 cents, that 5%
is coming from the total + the shipping, so that's $15.43. There is also an Etsy payments fee of 3%
plus the 25 cents, and that is 71 cents. So the amount that the person will get is $13.75.
So basically, although it seems like there are a lot of Etsy fees, they don't really come to
a lot of the total. And if you do find that you're not making enough profit with Etsy,
you need to just increase your prices. And that might not sound like something you really want
to do, but you do need to make a profit on the site, otherwise, it's just not worth it.
So that is a rundown of all of the fees that Etsy has and charges us sellers. All right,
that's my video for this week. If you liked it and you want to see more videos like this,
you can just hit the Subscribe button and the little bell next to it, and you'll be notified
every time a new video comes out. All right, I'll see you in the next video. Thank you!!!