How To Calculate Etsy Fees with Free Etsy Fee Calculator
It will inevitably be disappointing for new Etsy sellers to come across different types of fees once they have opened their online shops. So, it is of vital importance to them to know of sorts of fees applied on Etsy beforehand.
Plus, in addition to having knowledge about fees, you are also to be aware of the basic strategies to lower your fees as much as you can.
Last but not the least, introducing the brand new Etsy Fee Calculator is one of the best ways to understand the fees and lower them. Go ahead to discover free fees, profits & pricing calculators, and tips to lower fees.
Table of Contents
Introducing Etsy Fee Calculator
EtsyHunt has recently launched its totally FREE Etsy Fee and Profit Calculator to help sellers on the platform take control of fee management.
It is quite easy to reach EtsyHunt free Etsy Fee Calculator. You should just follow these steps:
- Go to etsyhunt.com
- Hover “Free Tools” from the header menu and select “ Etsy Fee Calculator” from the dropdown menu.
It is basically used to specify accurate prices, see how much is paid for fees, and monitor the overall profit. It mainly has three parts:
- Parameters,
- Results
- Types of fees on Etsy.
1. Parameters
On the left part of the Etsy Fee Calculator webpage, you will see the parameters that sellers enter to see the results regarding fees and profit. It consists of four categories:
- Currencies: You can convert the currency unit configured in your store to the currency unit when your bank settles
- Revenue: Enter your shipping price, shipping charge, and discount.
- Cost: It includes parameters that determine your total order cost.
- Etsy offsite ad fee: If you use Etsy's off-site advertising feature, Etsy will take a cut of your advertising order. When your total revenue in the last year is less than $10,000, the advertising commission will be charged at 15% of the order revenue. Advertising commission will be charged at 12% of order revenue when your total revenue in the last year exceeds $10,000
2. Results
Etsy sellers will see detailed results of the item whose parameters have been typed completely on the right part of the fee calculator. It allows them to see the order costs in the first place and a list of fees charged by Etsy.
Finally, sellers can view the summary in the results, giving the total revenue, cost, and fees plus estimated profit and margin. This part of the Etsy Fee Calculator is of vital significance to sellers to decide whether the item is worth selling.
3. Brief Explanation of Fee Types
Four basic types of fees on Etsy are briefly explained in this part, making sellers aware of the fees so that they will keep alert in these circumstances. It will be significant to use the tool as effectively as possible.
However, sellers should be aware of all types of Etsy fees in order to avoid unexpected results. So, keep reading to explore Etsy fees.
10 Different Types of Fees on Etsy
Sellers who want to be key players and stand out among their competitors on Etsy should be knowledgeable about the fee policy of the system. Thus, they have to find out the basic fees applied on Etsy. So, let's get to learn what they are in detail.
1. Listing Fees
Etsy will charge you a listing fee of $0.20 for every item that has been listed for sale. In the case of putting multiple quantities of the same product, you are only charged the initial listing fee of $0.20.
💡 Note that the charge is only for creating or renewing a listing, so it is free of charge to edit a listing.
It is significant to know that Etsy private listing takes place when you don't wish to sell an item publicly. Etsy charges you only if your private listing item is sold.
Listings sellers create on Etsy will come to an end after a period of four months except that pattern-only listings never have an expiry date. That’s where auto-renew comes in and Etsy charges you $0.20 listing fee for every listing sellers have made.
2. Transaction Fees
As of the beginning of April 2022, Etsy started to charge sellers a transaction fee of 6.5 % over the price they put on the listing item and the amount they charge for shipping and wrapping gifts. It definitely puts a burden on sellers’ shoulders.
It would be wise to note that transaction fees will not apply to sales taxes if the seller is doing business within the borders of Canada and the US. Other sellers outside of those countries are required to pay transaction fees for the price of listing and shipping, and gift-wrapping fees.
3. Advertising and Promotional Fees
The platform offers sellers two different ways of marketing their items and promoting their store: On-site and off-site ads.
For on-site ads, also known as Etsy ads, you have to specify a maximum budget so that you can limit the amount of fee you have decided to pay.
As for the off-site advertising system, Etsy partners with networks for better results in social media or search engines. If you sell an item by the help of this ad method, then Etsy charges you between 12 % and 15% on your orders as explained above.
4. Subscription Fees
Etsy Plus comes with a fee of $10 monthly for sellers with a good reputation on the platform.
It is a great package offering 15 listing credits worth $3 and Etsy Ads credits with $5 each month. Auto-renew is applied for a subscription unless you cancel it.
5. In-Person Selling Fees
Sometimes sellers on Etsy may prefer to make in-person sales and they need some payment methods such as Square reader. Should they decide to synchronize their listing items with the reader, the system charges them a $0.20 renewal fee for multiple listing quantities.
If it is not the case, listings not synchronized are charged a $0.20 transaction fee instead. See, you have to calculate your Etsy fees in all circumstances.
6. Payment Processing Fees
If the payments are made through Etsy Payments, the site charges you this amount consisting of a prespecified rate and percentage fee of a product’s total sale price, making you use the Etsy Fee Calculator to see your profit in these transactions.
7. Shipping Fees
Sellers in some particular regions are required to finish their orders and Etsy is there to offer the option to buy shipping labels.
The fee of the label largely relies on the carrier of the shipping, the origin, final delivery point, weight, and the dimensions of the package.
For more details about Etsy Shipping: Etsy International Shipping: Road to a Global Etsy Shop
8. Regulatory Operating Fees
Etsy can charge you the fee if you are in one of certain countries’ lists. This fee can be defined as a set percentage of the price you put in each of your listings plus the sum you charge for shipping.
Please check out the countries in which Regulatory Operating Fee is charged.
9. Pattern Fees
You can always customize your shop with Etsy Pattern, a great tool to create an outstanding website for your store.
Just keep in mind that it is free only for one month, it has a subscription fee of $15 monthly plus applicable taxes. You can cancel auto-renew at any time if you feel that you don't need to use the tool any more.
10. Currency Conversion Fees
It is of utmost importance to Etsy sellers to use the same currency both in their listing items and payment account.
Still, should you opt out to have a listing in a currency different from your payment, then it is Etsy’s job to charge you a 2.5% currency conversion fee.
💡 For more details please visit: Etsy Fees (2022): A Beginner's Guide to Etsy Fees
How To Calculate Etsy Fees with Free Etsy Fee Calculator
Now, you have in-depth knowledge about Etsy fees. It is time to practice calculating Etsy fees, profits and selling price.
Let’s say you are selling handmade soap sets. Your shop currency and listing currency will be USD. You are planning to sell one of your sets for $20 with a $10 shipping charge. You also tend to offer a discount of 5% in order to increase your conversion rate on Etsy.
You have $19 of the total order cost. So, you can go further with EtsyHunt Etsy Fee Calculator to analyze your results.
As you conclude from the summary part, you will get a $7.75 profit from this sale. Moreover, your profit margin will be 26.71%.
If you want to focus on profit margin, you can change your selling price on the calculator.
For example, if you sell this item for $25, then your profit margin will be 35%.
💡Pro Tip: If you are unsure about determining your own selling price policy, you can get inspired by similar products using EtsyHunt Product Research Tool.
8 Useful Tips on Reducing Etsy Fees and Boosting Sales
Now that you have had a clear picture of what Etsy fees are like, you may come up with some strategies to apply so as to be able to lower your overall fees on the platform. Without further ado, let's get the ball rolling.
1. Minimizing Multiple Listings
It may not always be the ideal way for sellers to display their items just for the sake of standing out easily. Instead, they should bundle their listings on Etsy so that they don't have to pay much more than you would think.
2. Selling Multiple Items
Sellers can use the advantage of using multiple sales at a time, meaning that they can sell, say, 100 pieces of a certain item and pay the transaction fee of $0.20 only once for that item.
It will definitely give you an edge over other sellers, letting you offer customers some additional discounts. It also means great reviews for your multiple products, paving the way for becoming a Star Seller
3. Shipping Costs Reduced
Another easy yet effective way to lower fees on Etsy is regarding shipment costs. It means you can go ahead and find your local shipment carrier company which offers you a more reasonable price than Etsy would charge you.
4. Canceling Auto-renew Feature
In terms of listing and Etsy Plus subscription, auto-renewal may stand out as a great alternative in order to save a great deal of time. However, in reality, turning off the feature means saving a lot of money as well.
Some items in sellers' shops may be outdated and do not need to be displayed anymore. So, it is ideal to get rid of them in your listing. With auto-renew on, it will not seem possible.
Manual listing not only gives you the option to choose what to put in your listing and what to exclude at any time, it also protects you from listing fees for redundant items. Make the most out of it!
5. Using the Power of Private Listing
As mentioned above, the private listing takes place when a customer wants an item in multiple quantities, and you go for it to make your listing fees less and less. You offer that certain customer the private list and reduce listing fees remarkably.
6. Same Currency for Everything
Making sure to use the same currency for all operations including specifically listing and payment prevents you from being charged a currency conversion fee and, needless to say, most of the time it means a lot to all sellers on Etsy of course:)
7. Promoting Your Shop on Social Media
Every shop owner wants their shop to be known and using all social media platforms to do that is always a great option.
It is one of the most effective ways to increase your visibility on the platform and allows you to stand out among your competitors in this online shopping marketing world.
8. Empowering SEO tool partners
In addition to employing some research tools to analyze the market and find potential items that suit your needs, using EtsyHunt Search Engine Optimization keyword tools promotes your chances of visibility in search platforms.
Conclusion
Doing business on Etsy comes with some fees that are charged nearly every phase of selling the product. So it really gets critical to get to know the requirements in detail so that sellers on the market will not be overwhelmed with bad results.
While getting involved in this sale procedure, sellers are more likely to understand how important it is to lower fees on Etsy as well as boost strategies to utilize to make the most out of their Etsy sales.
So as to be able to save money on fees and make profits, sellers on EtsyHunt can use the free Etsy Fee Calculator. It is totally free and great to calculate what you need to see the bigger picture. You should give it a go for the best results. Stay tuned:)
FAQs
Are Etsy fees worth operating a shop in 2022?
Most definitely. Etsy charges certain fees within reasonable explanations. Etsy has active 160 million users, bringing the great potential to handmade sellers. So long as you operate the shop seriously, you will reap the benefits of this huge business network.
What are the payment processing fees in my country?
The fees for payment processing on Etsy orders change according to the location of your bank account. Please refer to the article to consult the table for fees in your location. It would be wise to use Etsy Fee Calculator in this regard.
