|Wed Mar 17 2021 15:20:45|
Etsy Seller Charged 32 Percent Commission
By: Ina Steiner
Eye-catching: A seller paid
a 32% commission to Etsy UK on a recent sale, or 40 pounds on a 125-pound order (British currency, not weight!).
That's because of a 15% Etsy Offsite Ads fee on top of the regular fees Etsy charges - including on shipping - and for payment processing.
Incredibly, there's nothing extraordinary about paying substantial fees to Etsy on a transaction because of the Offsite Ads program, and what makes it worse is that sellers never know when that extra 15% Offsite Ads fee will hit.
Etsy might say the seller wouldn't have made the sale if not for the Offsite Ad. But even aside from the fact that Retargeting Ads call that claim into question (see this recent AuctionBytes Blog post
), it reminds me of people who say they lose money on each sale but make it up in volume.
One expects to pay extra to acquire a new customer, but even here, Etsy's Offsite Ads program is flawed. Sellers say Etsy charges them for Offsite Ads even for repeat customers. It's possible Etsy charges the 12- 15% fee for the same buyer ad infinitum.
It would be interesting for sellers to calculate their average commissions paid to sites like Amazon, eBay, Etsy, etc. - including all fees tied to sales - and compare them to get a sense of where each falls when it comes to seller fees.
It would also be advisable for sellers to make sure they're actually making money and not treading water or losing money when selling online.
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