The transaction fees that the e-commerce platform Etsy imposes on sellers using its platform have not increased for 4 years. At that time, they went from 3.5% to 5%… now, a new increase is announced: up to 6.5%.
But the platform, which specializes in handicrafts and vintage products, will not bring these new rates into force for another month and a half: next April 11. The publication fee for each article ($0.2) will, however, remain unchanged.
“Our new fee per transaction will allow us to invest in key areas such as marketing and support”, justifies its CEO, Josh Silverman, who wants his company to be able to offer a “more human trade”.
Types of rates
Depending on their website update, “Sellers may be required to pay the following types of fees.” Some, such as those of Etsy Ads or offsite advertising, are optional, but those of transaction and publication, already mentioned, are unavoidable:
- Listing Fees: “You will be charged a listing fee of $0.20 for each item you list on Etsy.com or the Etsy mobile apps. For items listed on your Etsy shop, there are no additional listing fees for listing items on your Pattern site.” Likewise, “you will be charged the listing fee of $0.20 USD for each of these ads until you cancel automatic renewal“, which occurs every 4 months.
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- Transaction fees: “When you make a sale through Etsy.com, you will be charged a transaction fee of 6.5% of the price of each listing plus the amount you charge for the gift option. [ ?] If you offer optional customization for an additional fee, that fee is added to the price of the ad you show.” Currency conversions may add extra charges.
Year of records
The decision comes after a year of great numbers for Etsy. The company, which has just closed its fiscal year, has released data that shows that it is in a moment of growth:
- Etsy has added 10 million new buyers, bringing the total number of buyers to 90 million.
- In 2021 it has reached record sales figures per vendor.
- The increase in their income compared to last year is 30%.
- Its turnover reached 641 million euros, an increase of 16.2%.
- Before yesterday’s bump (caused by the Russo-Ukrainian war) Etsy stock was worth almost three times higher than it was at the end of 2019.
To this is added that Etsy’s forecasts happen because the first quarter of this year it managed to reach 527 million euros in sales, compared to the 404 recorded in the equivalent period of 2021.