Wow, what a morning I have had. Sorting out pricing is by far one of the most difficult, tedious aspects of running your own business. Throw in Etsy and it’s change in pricing system and my brain is on the verge of exploding!
I’ve spent my last week increasing my prices to adapt to the raise of fees to 5%. But then, due to my own stupidity (and probably because I’ve only just starting selling lots on Etsy and before was left unaware), realised that not only is there a transaction fee that is taken off before you receive the money in your bank, but there is also a payment processing fee. I did not know this (I know, an error on my part, but seriously, it’s not black and white and this processing fee doesn’t appear until your monthly bill shows up in your inbox – there must be others out there who did the same? No? Just me?!).
So, here, to try and help anyone else struggling, I’m going to do my best to show you how it works (please note these are based on UK fees):
Price you charge for Item you are selling + Postage and Package: £180
Original listing fee ($0.20): £0.16 (based on today’s conversion rate)
Transaction fee (5% of total sale price): £9
Payment Processing fee (4% of total sale price) + £0.20: £7.40
Total fees: £0.16 + £9 + £7.40 = £16.56
Well, at least I think that’s right. It’s near enough right, maybe a few pence here and there. Please feel free to correct me, but I am NOT changing my prices again!
Now, I don’t have a problem with businesses charging to use their services, obviously; if it wasn’t for Etsy I wouldn’t have got the orders in the first place. But it’s my customers that I feel for. This adds a lot of money on to the total price. And I’d like to be able to just suck up the cost myself, but I’m already charging the very minimum in order to gain the business in the first place. It’s a catch 22!
But, in good news, items are cheaper on my website www.mrskdesigns.co.uk, because I don’t have fees! So head on over there people!
Happy Etsying and good luck!