Sellers are paying more to online marketplaces than many may realize, a fact confirmed by an executive from a marketplace with some of the lowest *commission* fees around.
Etsy Chief Financial Officer Rachel Glaser revealed during a Wall Street investor conference in June that sellers pay Etsy 16.5% in fees, which she called "fair" compared to other marketplaces - it's not the lowest or the highest, she said.
Her statement may come as a surprise to readers who know that Etsy charges commission fees of 5%. But when you add the 5% of shipping costs that Etsy also charges, along with payment processing, shipping-label, and advertising fees, it clearly adds up!
Glaser acknowledged that some of the fees are optional, for example, promoted listings and shipping labels.
But if their listings aren't getting exposure, sellers may feel advertising their listings is the only way to generate sales.
Earlier this month, a reader cited concern over a report from Needham analyst Rick Patel who wrote, "We see Etsy capturing new buyers, generating higher sales with existing buyers, and improving its take rate from sellers."
That was concerning to read, the seller told us. "As an Etsy seller, I feel a bit overwhelmed with all the fees that have come about recently. "Take rate" sounds to me like another fee hike."
Etsy isn't the only marketplace looking for ways to generate revenue beyond listing and commission fees. What percentage of your selling price goes to the marketplaces on which you sell once you factor in *all* of the fees you pay them?