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Etsy Raises Fees, Promises to Boost Marketing

Etsy logo

Etsy logoEtsy is raising seller fees and introducing new subscription plans while promising to boost its marketing budget to bring more buyers to the site. One positive thing worth noting: listing fees are not increasing. But transaction fees (commissions) are rising from 3.5% to 5%, and they will begin including not just the selling price, but shipping as well.

An Etsy spokesperson told EcommerceBytes, “These changes were designed not only with the input of our sellers, but with the benefits to our sellers in mind. That reflects our focus on the fact that Etsy is only successful when our sellers are successful. That’s one reason why we are making the subscription bundles optional. We want sellers to try them, to see value in them, and continue to invest in their success on Etsy.”

We have more about the fee changes on the AuctionBytes Blog.

Etsy announcement follows:

We’ve been helping sellers on their creative journeys for 13 years. We’ve focused on making Etsy the best place to run your creative business, and we’ve listened to sellers like you to learn more about what you need from us.

Sponsored Link

Now, we’re planning to invest even more in bringing buyers to Etsy, building seller tools, and improving your seller experience. To help make this happen, we’re updating our fees, and we’re adding some new features.

Effective July 16, Etsy’s transaction fee will increase from 3.5% to 5% and it will also apply to the cost of shipping. All other fees, including listing fees, will remain the same.

We’re also introducing new optional feature plans designed around the needs of sellers at different stages of growth, so you can access the right tools at the right time for your business.

Learn more here.

You’ve got questions. We’ve got answers.

Why is Etsy raising fees?
We’re updating our transaction fee to help us invest more in bringing buyers to Etsy, building tools that make it easier for sellers like you to run your shop, and providing the support you need to grow. As always, our goal is to make Etsy the best place for running a creative business online, and we think these changes will make Etsy even better.

Will I lose access to any Etsy’s tools when the new packages are available?
No, you won’t lose access to any free or paid features. You can still use tools like Promoted Listings and Pattern as you always have.

Do I have to do anything?
No, Etsy Plus and Etsy Premium are completely optional. If you choose not to subscribe to a plan when they become available, you’ll continue to have access to all the tools and services you use today.

Join the q+a here: etsy.me/june-update-forums-qa

SOURCE: Etsy Announcement

Comment on the AuctionBytes Blog.

Ina Steiner on EmailIna Steiner on LinkedinIna Steiner on Twitter
Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.

4 thoughts on “Etsy Raises Fees, Promises to Boost Marketing”

  1. Maybe Etsy should have “marketed” to disgruntled eBay sellers, many looking for a place to sell vintage goods. I buy on Etsy and the changes they have made lately have me buying much less. They took away the ability for me to easily save an item to a list. Now I have to “Heart” it first, add it to a list from a pull down menu, go back and “Unheart” it. Ridiculous – I think I counted 6 clicks where it was 1 or 2 before. Supposedly a test that has been going on since February with many complaints.Pages littered with “Promoted” items. (Don’t they get it? I hardly ever look at Etsy or eBay “Promoted” ’cause all that says to me is the seller pays more, so the buyer pays more. No thanks) I used to buy a decent chunk on Etsy but as a buyer unhappy with the changes they have made, I consider them as heading in the same direction as eBay – higher fees, do not listen to sellers or buyers, fixing what isn’t “broke”. I was seriously considering moving my eBay business to Etsy but now, not so much. Another one bites the dust.

  2. I started using promoted listings on Etsy to be found again and I have not raised my pricing on the item nor the shipping. I’ve always had a spot on the front page over the last 5 years; until the clumping and new search engine took over. My items landed on page 10. That hurt my sales greatly. With the new home page, a shop can have 5-10 items on the front page!

    I am not fond of all the changes Etsy dropped on us yesterday either, the 5% on shipping is painful. Like most sellers I have a lot of thinking to do on how to handle the situation and over come it. Etsy is my cash cow, it well outsells my eBay. But I may need to branch out more soon.

  3. @VeryGoodVintage2 – I remember when eBay first started initiating its anti-small seller policies in February 2008, eBay sellers were flocking to Etsy. Unfortunately, Etsy has chosen to take the same path as eBay: taking all the money they possibly can from its sellers.

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