How much does Etsy charge sellers – 2020 seller’s guide

how much etsy charges per sale

Are you wondering how much does etsy charge sellers? If so, this fantastic guide has been created to help you understand how the Etsy marketplace works, what fees you are expected to pay, how many shops you can open and lots more!

As a platform, Etsy started in June 2005, selling handmade, craft supplies and vintage goods – it now has over 60 millions products on the website. Interestingly there’s around 2 million sellers and over 40 million buyers, making it an ideal marketplace for business owners and entrepreneurs throughout the world.

Read also: Best Eco-friendly biodegradable packaging supplies in 2020

The website has been designed follow in the tradition of “open craft fairs”, this ultimately gives sellers personal storefronts and allows them to sell their items in a friendly manner. There’s a wide range of categories on the platform, including jewelry, bags, clothing, artwork, furniture, home décor and toys – as well as craft supplies and tools.

However, if you plan to sell vintage items, they must be at least 20 years old. Etsy also may ask for further details about vintage products such as where did the item comes from? How is the age determined? Who is the designer? And so on. This type of information sets the marketplace apart from other websites, as it allows their customers to know the history of the piece in question.

If you want to be a successful seller on Etsy, carefully read through this excellent guide, so you know exactly what is expected of sellers and business owners.

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How much Etsy charges per sale

To sell on the Etsy marketplace you need to pay a $0.20 USD listing fee, if your item sells, you then pay a transaction fee of 5% of the product price. It’s also worth remembering that these figures are exclusive of VAT (Value Added Tax).

In comparison, eBay also charges a transaction fee (known as final value fee) when an item sells as well. This fee is calculated as a percentage of the total amount of the sale, but instead of 5% of the product price like Etsy, eBays final value fee varies according to the category the item is listed in.

As of 2020, if you sold a book on Etsy for $100 USD, they would charge a 5% transaction fee, which would be $5.00. However on eBay the final value fee for Books is 12%, so they would charge a transaction fee of $12.00. (eBay source)

How many Etsy shops can you have

As the Etsy marketplace is built on trust, many sellers only operate one store – however, there’s nothing to stop you from opening more than one store on the platform, as long as they’re not duplicate shops. In theory, you can open as many Etsy stores as you like.

For example let’s say you sold clothing, one for adults and one for children. It is perfectly acceptable in this scenario to have more than one shop, as they’re selling different types of merchandise to different target audiences. However, if you only sold men’s trousers to the 18-24 market, you wouldn’t be allowed to open two stores selling the same thing, to the same audience – as that’s against Etsy policy.

In the past, some sellers opened multiple shops to sell the same types of items, which give them an unfair advantage in the search results. For many customers, it also led to confusion, as multiple stores owned by the same person were selling the same products – so Etsy decided to stop this from happening.

So in summary, as long as you sell different types of merchandise to different audiences on each Etsy store you create, then you’re allowed to own multiple stores at the same time.

How much do Etsy sellers make

With over 50 million members looking for new products on a daily basis, the Etsy Marketplace can be a great website for sellers. The actual figure of how much do Etsy sellers make can vary, depending on the amount of items listed and their sector.

As of 2020 the biggest seller on the platform is PlannerKate1, who has sales of around 920,000 – PlannerKate1 is currently selling approximately 1,000 products a day! If you estimated that this store made $2 profit per item, it will have a turnover figure of around $1,800,000 US Dollars.

In the second position is yakuturn with 600,000 sales – again if we estimated a profit of $2 per item, this shop would have a turnover of approximately $1,200,000 US dollars.

The third top seller on the marketplace is nicoledebruin with 585,000, if this outlet had a profit of $2 per item, then that would be a turnover of around $1,000,000 US Dollars.As you can see from these figures, Etsy could be a great shopping platform if you own a brand or company.

Interestingly Etsy is probably best known as marketplace for handmade products and jewelry, however while yakutum and nicoledebruin sell jewelry, PlannerKate1 actually sells Planner Stickers and Labels! While ModParty who is the fourth best seller with 580,000 sales, sells ladies clothing – this highlights that there’s profit to be made for a wide range of industries and sectors.

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How much does Etsy charge UK

If you want to sell on Etsy UK then you’ll need to understand what fees and charges you’ll have to pay. Firstly to open a store on the platform is completely free, however, you have to pay for the listing fee for putting your item on the marketplace and transaction fee if your item sells.

You will be charged a listing fee of $0.20 USD (approximately £0.15p – this amount can vary due to the exchange rate) for each item that you list for sale on Etsy or Etsy’s mobile apps. You will only be charged a listing fee for creating or renewing a listing on the platform – there is no fee for editing a listing.

If you list multiple quantities of the same item, the initial listing fee will still be $0.20 (£0.15p), however, the listing will be automatically renewed at $0.20 after each of the items sells. So this means you will be charged the listing fee of $0.20 for each of these listings until you cancel automatic renewals.

If you make a sale on the platform, you will be charged a transaction fee of 5% of the price you display for each listing. Equally you should also keep in mind that all fees are listed exclusive of any value-added tax (VAT) – so you’ll need to include this into your product pricing structure.

How does Etsy pay me

There are several ways that Etsy pays sellers on the platform, this includes Etsy Payments, Payment by Mail and Paypal. Depending on your bank, funds may take 3 to 5 business days to appear in your account, equally if you choose a daily deposit schedule, some countries have a minimum amount threshold – in the USA this is $25 US Dollars, while in the UK this is £15 Pounds.

Most sellers on the platform are paid directly from Etsy, if you’re a new seller for your first 90 days, your funds will be available for deposit 3 days after a sale. When the 90-day period ends, payments will become available for deposit the next business day.

If required you can set up a “deposit schedule” for your available funds, this simply means you can be paid on the Friday of every week or a certain day of every month – the choice is yours. If you set up a schedule and need money into your bank account earlier, then you can request it immediately in the seller control panel.

To receive your sales funds, you are required to have a valid bank account connected to your shop. You have to enter your bank account on file and click “confirm”, so your bank account is linked to your store.

Remember if owe more fees for your shop than you have made in sales, you won’t have funds available for deposit – this basically means that your current balance will be negative and you’ll need to “make up” the difference by paying Etsy for any fees you owe.

Can Etsy pay me through PayPal

Yes, Etsy can pay through PayPal – however, it’s not applicable to all sellers. This is because sellers in eligible countries such as Australia, Canada, European Union, UK and the United States are required to accept Etsy Payments only. If you live in a country where Etsy Payment isn’t currently available, then you can sign up for PayPal to receive your payments.

A few years ago Etsy required all eligible sellers to accept Etsy Payments as well as using their own PayPal accounts. However, in May 2019 this policy was reversed and having their own PayPal account as an additional option wasn’t possible anymore.

This meant using PayPal as the main payment method allowed sellers to be deposited immediately with the money into their PayPal account – However Etsy Payments means Etsy processes the payments and then disburses funds into the seller’s bank account.

So in summary, if you live in a country which is not Australia, Canada, European Union countries, Hong Kong, New Zealand, Singapore, Switzerland, United Kingdom and the USA, you can be paid by Etsy through PayPal.

When does Etsy pay me

Etsy pays sellers after their account balance is positive – this simply means the balance is any sales you’ve made minus your shop fees (such as listing fee and transaction fee). For example, if you make $1000 in sales, you owe $50 (5%) – meaning you’ll be paid $950.

In the example above the $950 USD will be available for deposit to your bank account. However, if you run a store from a country that isn’t currently supported by Etsy Payments, your fees are not deducted automatically from your sales amount, your account with have a ‘due amount’ which needs paying at the end of each month.

So in this example, let’s say you make $1000, instead of the $50 being subtracted automatically and you receiving $950 – you will receive $1000 in your PayPal account and be ‘billed’ by Etsy for the $50 fees. You will need to pay these fees at the end of each month, if you want to continue to sell on the platform, otherwise your shop may be closed down.

Equally you should also bear in mind, that if you’re a new seller to the platform – during your first 90 days, your funds will be available for deposit 3 days after a sale. When the initial 90-day period ends, Etsy Payments orders will become available for deposit the next business day. This can help for businesses that need more control over their cash-flow, for purchasing items, supplies and so on.

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How much does Etsy charge per listing

To publish a listing on the marketplace Etsy charges $0.20 USD, however for private listings the $0.20 fee will only be charged “if and when” the private listing is sold. As standard a listing lasts for four months or until the item is sold.

After the four-month period has ended and if your item has not sold, then the listing expires. If you want to, you can manually or automatically “renew” the listing, which will give it new expiration date four months from the renewal date. If you decide to do this, the fee for renewing a listing is $0.20 USD and any renewal fees are added to your Etsy bill.

So for example, let’s say you have an item of clothing and it cost you $0.20 USD to list it on January 1st – you didn’t sell this item during the four month period, but your account is set for ‘auto renew’, this means on April 1st you’re listing ‘starts again’ and you’re billed another $0.20 USD for the new expiration date. If your item doesn’t sell again during this four month period, you’ll be billed again on August 1st for another four month period and on it goes.

As stated you don’t have to ‘auto-renew’ a listing if you don’t want to, you could list an item for a four month period and decide to manual renew it at a later date – the choice is yours.

Equally, you should also remember that you will have additional fees if you decide to list an item that has quantities. When a sale occurs and the listing is not sold out, the listing is automatically renewed at a cost of $0.20 USD. In this example, you could have an item with a quantity of 5, you’ll be charged 0.20 USD for the first listing, if this sells, then you’ll be automatically charged a new listing fee of 0.20 USD – however you’ll only have a quantity of 4, because you’ve just sold 1 item. So, a listing with a quantity of 5 items will have listing fees of $1.00 ($0.20 x 5) if you sell all of the products.

As well as listing fees, there’s also a 5% transaction fee – you pay this amount every time an item sells. For example, if an item sells for $100, you will pay $5 as a transaction fee as well as your initial listing fee of $0.20 USD.

What sells the most on Etsy

On the Etsy Marketplace, you can basically sell anything you like, it’s setup for handmade sellers and business owners in particular – however, there’s a diverse range of items for sale from brands across the world.

As of 2020, the top 10 best selling items on Etsy include stickers, notebooks, candles, jewelry, home décor, personalized items, posters, party supplies, organic products and clothing. As highlighted earlier on this page, the biggest seller on the marketplace is PlannerKate1, who has sales of around 920,000 – PlannerKate1 sells stickers.

Stickers are popular because they can help with planning and record-keeping, as well as creating a buzz about a particular event. In addition, they’re a small item which means they’re easy to post and people buy them in large quantities.

Another popular line is Notebooks and Journals, ideal for people who love to write and travel. There’s a huge range of high-quality items from leather notebooks to personalized products – they can even be a fantastic gift or present, so it’s easy to see why people like them.

Of course, Jewelry also deserves to get a mention, it’s one of the hottest categories on the website where people can buy earrings, bracelets, lockets, rings, necklaces and more! As of 2020 there’s approximately 5 million jewelry products on the Etsy marketplace.

Read also: How to increase customer loyalty in retail

Conclusion

For sellers and business owners the Etsy marketplace can be a fantastic platform to maximize sales, some sellers are quickly approaching sales of 1 million! To be a top seller on the website, you need to understand all of the fees and charges involved, as they can affect your profit margins and cash-flow.

The best entrepreneurs are constantly testing their product pricing to hit the ‘sweet spot’ their target audience likes, however, once they have the correct pricing structure in place, they can literally sell hundreds of products on a daily basis.

Hopefully, this guide on how much does Etsy charge sellers has educated you on the policies and procedures for continued success on the platform.

 

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