Selling on Etsy in 2020 as a Digital Artist
I’ll get this out of the way first – I am in no way the best artist or graphic designer known to man, nor am I the most successful Etsy business owner in the world. But I’ve done pretty well in my first few months selling on the platform so I thought I would share some of the things that I’ve picked up on my journey as an Etsy seller so far!
Know exactly how much selling on Etsy costs you before you price your items.
It’ll be no surprise that selling on Etsy involves a cost. It’s a marketplace that people visit because they are looking to spend money to buy a gift, cheer themselves up and support small businesses while they’re at it. This guide is purely for sellers from the United Kingdom and is correct as of September 2020.
This example below is assuming you are selling an item on Etsy and the cost to the customer is £10 with £2.25 shipping fee. So the total that you’ve made from the customer for purchasing your item is £12.25. This table does not take into account your time, materials, advertising costs, packaging, postage costs, petrol to get to the post office etc – it’s simply just the money that you are paying to Etsy to sell your item on their platform.
The processing fee is charged as US Dollars and will be converted to your shop’s currency, so there may be small variations in the total cost. The VAT is currently 20% in the United Kingdom.
|Service||Fee||VAT||Total Cost To You||Running Total|
|Etsy Listing Fee|
– a charge to list your item on the Etsy marketplace
|Etsy Transaction Fee|
– 5% of your sale – in this case £10.00
|Etsy Payment Processing Fee|
– £0.20 + 4% total revenue – this this case £12.25
Only for Etsy Payments
|Etsy Delivery Fee|
– 5% of your delivery charge – in this case £2.25
– if you’ve sold your item thanks to a customer purchasing from an offsite ad (ie on google). If your turnover is less than $10,000 a year this is 15% of total revenue
This isn’t taking into account the use of Etsy ads, where you can set a daily value to promote your listings in related searches – this can be as little as $1 a day and also incurs VAT and doesn’t always guarantee a purchase.
So as you can see, Etsy does take a cut of your sale before you even think about purchasing supplies, envelopes, cellotape, postage not to mention your time! From the original price of £12.25, you’re down to £8.28 before any of your other costs. So please, take the time to work out your pricing and profits before you start listing your items to sell on Etsy! If you’re setting up a new Etsy shop, feel free to use my link to get yourself 40 free listings, worth £6.40! If you choose to use this link to open your new Etsy shop, then we’ll both receive 40 free listings.