MilosCandles Posted December 27, 2023 Share Posted December 27, 2023 I know Etsy fees are crazy, and I have figured out profits in the past but I just did it again. WTF. Kills me when I have other people on Etsy that under sell me cause it is just a "hobby" and they are happy with $5 profit. $36.99 Item+shipping -$1.44 3.0% of the order total plus $0.25 -$1.95 Transaction Fee - 6.5% of item total -$0.46 Transaction Fee - 6.5% of Shipping -$4.44 Fee for sale made through Offsite Ads - 12% (I can not turn this off because of my sales volume) -$0.20 Listing Fee $8.49 in Etsy Fees 22.9% in fees from Etsy. (That is just crazy) $28.50 To Me After Fees ~$7 Shipping Costs ~$5 in Product Material Costs ~$3 in Labor Costs 1 Quote Link to comment Share on other sites More sharing options...
TallTayl Posted December 28, 2023 Share Posted December 28, 2023 Yup. I feel ya. But I have to give Etsy props as it is still a super profitable sales channel for me. They pay more to market than I ever would, and not every sale has that extra marketing fee. I kept a really close eye on it and happily discovered far fewer appearances in my monthly statements than past years. On those surveys they send out I complain that past customers who use google to get to Etsy to order were unfairly costing us that fee in the spirit of things. Seriously, some of my regulars have been with me for a decade. Is that extra fee worthy? on the happy side, I raised my pricing to compensate when those fees were introduced. I calculated it in as a product cost. Every order that does not contain that fee is more profit for me. even happier, I’m seeing more traffic to my home site because they find me through Etsy then buy directly-like do with amazon. Woot! 2 Quote Link to comment Share on other sites More sharing options...
Laura C Posted December 28, 2023 Share Posted December 28, 2023 Hi @TallTayl. That's very informative. 1 Quote Link to comment Share on other sites More sharing options...
Laura C Posted December 28, 2023 Share Posted December 28, 2023 9 hours ago, MilosCandles said: $28.50 To Me After Fees ~$7 Shipping Costs ~$5 in Product Material Costs ~$3 in Labor Costs Hi. That's a very interesting break down of information. Are you saying you had already deducted the Shipping, Product and Labor from the $28.50? Quote Link to comment Share on other sites More sharing options...
MilosCandles Posted December 29, 2023 Author Share Posted December 29, 2023 $28.50 To Me After Fees This is what my costs are, and need to be deducted from the $28.50 ~$7 Shipping Costs ~$5 in Product Material Costs ~$3 in Labor Costs 1 Quote Link to comment Share on other sites More sharing options...
Laura C Posted December 29, 2023 Share Posted December 29, 2023 Thanks for clarifying that @MilosCandles. Yes, all the expenses and fees certainly add up but that still seems like a decent profit but I can't speak from experience. Sometimes just quickly thinking about that stuff doesn't seem like much until you put it in writing and include everything. I hear ya, I don't like that some sellers under cut the other sellers either. I will avoid the under cutters and purchase from someone with fair and decent pricing even if it does cost me a few more dollars, I just feel like that's the right thing to do. Seems like their products & branding look better anyway because they care more about their products and business. 2 Quote Link to comment Share on other sites More sharing options...
MilosCandles Posted December 30, 2023 Author Share Posted December 30, 2023 I hope this speaks for itself on Etsy Some people look at that, others don't. I was so overwhelmed with sales this xmas I doubled the pricing of many of my candles just after black Friday and then many of the copycats followed suit. Makes me laugh. 1 Quote Link to comment Share on other sites More sharing options...
MilosCandles Posted December 30, 2023 Author Share Posted December 30, 2023 (edited) On 12/27/2023 at 7:08 PM, TallTayl said: Yup. I feel ya. But I have to give Etsy props as it is still a super profitable sales channel for me. They pay more to market than I ever would, and not every sale has that extra marketing fee. I kept a really close eye on it and happily discovered far fewer appearances in my monthly statements than past years. I agree, I make pretty good money on ETSY. But still need to check profits and margins periodically. Can't just assume all is worth it. I put a lot of time and energy into this at times and I need to make sure it is worthwhile. Edited December 30, 2023 by MilosCandles 2 Quote Link to comment Share on other sites More sharing options...
TallTayl Posted December 30, 2023 Share Posted December 30, 2023 55 minutes ago, MilosCandles said: I agree, I make pretty good money on ETSY. But still need to check profits and margins periodically. Can't just assume all is worth it. I put a lot of time and energy into this at times and I need to make sure it is worthwhile. 100% agree. Our materials cost are so fluid I need to check at least once a quarter. My wax is about a grand a case now. Ouch on that. Every penny counts. 1 Quote Link to comment Share on other sites More sharing options...
AudraT Posted January 2 Share Posted January 2 The thing about Etsy is the fees can be better for a new business versus opening your own website and paying the monthly subscription fee. If you don't make a lot of sales, then your fees for the month with Etsy is just a buck or two. Now compare that to $40 at Shopify. $40 is a lot when you've only sold one item that earned $30 profit. If I could talk to myself in the past, I would tell myself to wait until I am paying a consistent $20 per month in Etsy fees before considering opening my Shopify store. 2 Quote Link to comment Share on other sites More sharing options...
Laura C Posted January 3 Share Posted January 3 On 12/29/2023 at 8:40 PM, MilosCandles said: I was so overwhelmed with sales this xmas I doubled the pricing of many of my candles just after black Friday and then many of the copycats followed suit. Makes me laugh. Oh, I forgot to say, Congratulations on all your sales, that's great.🎉 I dream of being a successful seller one day, I'm working on it. 1 Quote Link to comment Share on other sites More sharing options...
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