Etsy revealed financial information in its SEC filing on Wednesday when it filed to go public (see related story in today’s newsletter). And while Etsy grew revenue in the past three years, it is not profitable. Total revenue was $74.6 million in 2012; $125 million in 2013; and $196.6 million in 2014. It incurred net losses of $2.4 million in 2012; $0.8 million in 2013; and $15.2 million in 2014.
The accompanying chart shows how Etsy has found new sources of revenue beyond the 20-cent listing fee and 3.5% commission it charges for completed transactions.
Marketplace revenue consists of the 3.5% fee that an Etsy seller pays for each completed transaction on our platform, exclusive of shipping fees charged. Marketplace revenue also consists of a listing fee of $0.20 per item that she lists (for up to four months) in our marketplace. Although revenue from completed Wholesale transactions is included in Marketplace revenue, revenue from Wholesale enrollment is included in Seller Services revenue.
Seller Services revenue consists of fees an Etsy seller pays us for the Seller Services she uses, including Promoted Listings, Direct Checkout, Shipping Labels and Wholesale. Direct Checkout fees vary between 3-4% of the item’s total sale price plus a flat fee per order, depending on the country in which her bank account is located. Direct Checkout fees are taken from the item’s total sale price, including shipping. Revenue from Wholesale consists of fees an Etsy seller pays us when she is approved to enroll in our Wholesale program.
Other revenue includes the fees Etsy receives from a third-party payment processor.
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