Etsy Survey Fuels Speculation about a Fee Hike

Etsy is surveying sellers about fees changes, asking what type of fee increases would be more tolerable, a hike in listing fees or a hike in commission fees. 

In a discussion thread, a seller described the gist of the survey: "A lot of what if scenarios, like if it was $0.20 for one listing fee per month & transaction fee was 3.5%, would you sell on Etsy? If it was $0.20 for 4 months & transaction fee was 5%, would you sell on Etsy?" 

One seller discussing the survey pointed out that sellers could go to Amazon Handmade if fees became too high on Etsy. "The thing Etsy should consider and realize is that the fees on Amazon are preventing a (lot) of sellers from moving there from here. If Etsy increases fees and Amazon doesn't and advertises a ton for their sellers, people might be more likely to jump ship."

The specter of Etsy raising fees had some sellers mulling their options, from a standalone store to Facebook, Shopify, and Amazon Handmade.

Etsy's new CEO Josh Silverman addressed fees when speaking to Wall Street analysts on Monday. In response to a question, he said he was always looking at the "fair share" for the company. 

"We will continue to look over time as we're adding value to the ecosystem, what's our fair share of that," he said. "Our guide star that always will be, what are the things we're going to do that are going to make the marketplace stronger, and as we do that, (what is) our fair share."

Etsy has been growing revenue not only by growing sales (thereby taking more in fees), but by offering what it refers to as seller services, including optional Promoted Listing ads sellers can buy to boost visibility. Another seller service benefiting Etsy's bottom line is the requirement that sellers offer Etsy Payments.

As a result, Etsy's margin for the most recent quarter was the highest it's been since going public. In other words, sellers are paying Etsy more in fees without an increase in listing or commission fees thanks to seller services fees.

Sellers continue to discuss the survey about fees on this thread.