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Etsy to Increase Seller Transaction Fees


Most artists and artisans not only sell their products locally, but also online, using the Etsy platform.

As an Etsy seller since 2013 I can tell you that the website has definitely increased my revenue while exposing my artwork to new clientele.I love it. I have had no major issues with Etsy over the years and have found it's fees to be fair and it's tools easy to use.


I woke this morning to an Etsy email in my inbox. It announced to it's sellers that it will be increasing it's seller transaction fees from 3.5% to 5%.

The reason for the increase, says Etsy, is to, "invest even more in bringing buyers to Etsy, building seller tools, and improving your seller experience."

But not only is Etsy increasing the transaction fees, the real kicker is that they are applying those fees to the COST OF SHIPPING as well.


Let's show you one example of how this will affect the typical Etsy sale.

Fees before July 16 (3.5% transaction fee) EXAMPLE: Item is $25, plus $10 shipping = $35 Your Seller Fees Are: Listing fee = .20 cents 3.5% transaction fee = .88 cents Your cost to sell this item on Etsy is $1.08, your profit is $23.92

Fees after July 16 (5% transaction fee on item + shipping) EXAMPLE: Item is $25, plus $10 shipping = $35 Your Seller Fees Are: Listing fee = .20 cents 5% transaction fee on item = $1.25 5% transaction fee on shipping = .50 cents Your total cost to sell this item on Etsy is now $1.95, your profit is $23.05


While that may seem like small cookies, it is hardly. This transaction fee is nearly doubled. Now, imagine that same $25 item costs $40 to ship. It's not uncommon. Heavier, bulkier items can be expensive to ship from one coast to another, let alone another country entirely. Sellers with heavy, or larger items will really feel the pain of the new transaction fees.

Interestingly enough, on the VERY SAME DAY that Etsy announced it's fee increases to it's sellers it also raised its full-year revenue growth forecast, boosted by an increase in its transaction fee for sellers, sending shares of the company surging 35 percent to a record high. (Source: Reuters, June 14, 2018).

Wow. A little turning of the knife... Too soon? Is this all about Etsy's personal growth? It appears so.

Needless to say Etsy sellers are not pleased with the transaction fee increases, nor are they impressed with Etsy's new subscription based platforms that the site will be rolling out in the coming months.

If you are a seller on Etsy you can write to them and voice your concerns on this new rate hike at (Etsy CEO).

I will update this article as need be, check back for fresh information.


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