There is a flurry growing with the sellers at Etsy. Etsy is raising their transaction fees to 5% on seller’s product including shipping charges. At first I wasn’t too upset. I then went on their forum and discovered maybe I should be. In general, a seller who sells high priced items or heavy items can expect to pay more than 5%. Therefore sellers (me) is going to be handing over much more money to Etsy. Because I sell items priced over $100 and more (which is covered under insurance with Etsy) I have to add additional shipping insurance to my shipments driving what Etsy collects higher. Heavier items are not cheap to ship and again the higher the shipping charge the more I pay Etsy. See my dilemma? Now granted you sell on Etsy with no monthly fee only .20 cents per listing. But in actuality they are charging 5% of your sales as their monthly fee. So if you sell $500/month that would be a monthly fee of $25. The more you sell the more Etsy makes. Does Ponzi scheme come to mind? Maybe.
When I broke down my Etsy charges that Etsy collects I pay about 11% and not what I originally calculated 7%. I am running a deficit of 4% on most of my sales. I have had to raise my pricing and add handling fees just to overcome the excessive charges. Now if Etsy was allowing for customizing your shop and advertising as they once did most sellers on Etsy probably would NOT mind. Ah Etsy is NOT doing this instead is offering enhanced options and Pattern websites at an additional monthly fee. The fees are above and beyond the standard fees you are charged with a standard shop. Really?
Etsy is a publicly traded company. Since this happened the focus is on shareholders and COO/CEO/CFO’s (which is fine) but remember us the sellers. We line your pockets with our creative ideas and long hours tolling away in our studios and small businesses. Lets face it, sellers on Etsy, we make the money for them and Etsy treats us aporantly. I think there is another option out there, don’t you?
Let me know what you think and if you discover another exciting way to sell your fabulous work online.