If you are looking to open an e-commerce store to sell your vintage or home-made goods then Etsy have probably come up in most of your search results. Here we talk about the Etsy Seller Costs.
One of the main reasons why people choose Etsy is because of the low costs to start and maintain the store. So How much money do I need to open an Etsy store? There are many reasons why Etsy has become so popular amongst e-commerce entrepreneurs. If you want to read more about why people choose Etsy then click this link to view a blog I wrote on Etsy vs Shopify.
Sign up and open costs for an Etsy store: Etsy Seller Costs
One of the more outstanding positives of opening an Etsy store is that it is free to sign up and start your store front. Mind blowing, yes it won’t cost you a cent.
When do you do sign up, they will need to your debit or credit card details to pay you out for your sales. In order to verify your card, they will take a small of about 2 cents with a code that you will use to verify that it is your card.
Unlike Shopify or other e-commerce platforms there are no monthly payments required to keep you store running. If you want more information on the monthly costs of Shopify head in over to this blog.
Cost of uploading products to an Etsy store:
Etsy will charge you 20 cents per product listing that you upload. This means that every time you upload a product you will have to pay 20 cents. So How much money do I need to open an Esty store ?
This is a very small cost considering the value they bring to the table.
So, upon opening your store if you have 10 products you want to sell then the total will be $2.
One thing to note is that if your product gets sold out and you want to restock the product on your store then it will cost 20 cents again. Etsy also have a 4-month expiry date on your product. So, if you have not sold any of that specific product in the four months period then you will have to pay the 20 cents to upload it again.
Etsy transaction fees:
Whilst this is not an initial startup cost you will incur it’s still important to know how much of your profits will be taken by Etsy.
If you have noticed the pattern that Etsy are an extremely affordable then you would appreciate the fact that their transaction fees are very low too. The fees that Etsy take are broken up into two categories.
The transaction fee
Etsy take a 6.5% transaction fee on every product you sell. Let’s say you sell a product and your customer paid $60.
This would mean that Etsy takes $3.90 as their transaction fee.
Payment processing fee
In addition to the actual transaction fee, you will be charged 3-4% for a payment processing fee. This depends on where you are in the world.
They will also take an additional $0.25 per sale.
So, if we refer back to our example above of the $60. Etsy will take another $1.80 plus the $0.25.
In total for you $60 dollar sale Etsy will only take $5.95.
Etsy marketing costs:
With Etsy you don’t need to run any marketing campaigns or spend large amounts of money on marketing.
Esty do have their own marketing features and you literally just need to put in how much you want to spend per day and they will do the rest.
Using Etsy marketing isn’t compulsory but to help move your store higher in the search list you might want to use it for the first few months.
Finishing words
The cost of starting your Etsy store will really depend on how many products you want to add and how much you are willing to spend on marketing. How much money do I need to open an Esty store is explained in details and depends on how many products you upload and how much money you spend on marketing your products.
I hope the above will give you the information you need to work out your costs when starting you store. Feel free to email us or leave a comment for any questions relating to Etsy Seller Costs.
