Things I Wish I Knew When I First Started Selling on Etsy

Etsy is a great selling platform for artists and creatives to sell their products. In fact, I think it is a fantastic ecommerce solution because, as they describe it, Etsy is the global marketplace for unique and creative goods. It’s home to a universe of special, extraordinary items, from unique handcrafted pieces to vintage treasures.

Etsy has a marketing program specifically for handmade items. Buyers feel comfortable buying from Etsy sellers. It is a wonderful thing.

Please note that I am an Etsy seller, I do not work for them or receive any compensation for writing about my experience with them. I know how overwhelming it can be to start a small online business and want to share my thoughts with like-minded creatives who might benefit from knowing what has worked for me.

I have a website (www.happymonkeygifts.com) and an Etsy site (https://www.etsy.com/shop/HappyMonkeyGiftsLLC). As an Etsy seller, there are a few tips that I wish I knew when I started. Here are my thoughts and recommendations:

Etsy Pays Sales Tax

This is definitely a perk. The platform charges the seller sales tax, collects it and sends it to the appropriate state agency for you. This is a time saver for sure.

Include Your Transaction Costs when Planning Your Sell Price

Selling on Etsy can be very successful for small businesses, if you account for the fees you will be paying. Currently, Etsy charges 6.5% of the item total, plus a listing fee per item. They also charge a transaction fee (credit card fees), which are 3%.

Please do not be discouraged by these fees. You will have transaction fees on your own site anyway because of credit card costs. Etsy has costs associated with the platform and they have a reputable name, so your product can reach more people than you might reach on your own. This is a value and there is a cost for this service. The good news is that you do not pay this monthly, it is on a per transaction basis.

Include Shipping on all Transactions:

This might take a little planning, but you can figure out what your shipping costs are and include them in the price. There is a bit of a psychology to this, but also a financial incentive.

First, if you are like me, once I get to the shopping cart to check out if shipping gets added on at the end, chances are good that I am going to pause and evaluate the whole sale. If it is included, even if I am paying a little more, I am more likely to hit the "Place Your Order" button.

Second, there is a Listing Fee (currently $.20 per item) when you make a sale or publish a new item. Etsy includes shipping fees as a transaction. So if you sell one mug, with shipping, it will cost you $.20 extra per transaction. I know it does not seem like a lot of money, but let's say you have 100 transactions per month, that is an extra $20 cost per month, $240 per year. I don't know about you, but as a small business owner, I like to keep my expenses as low as possible.

Shipping Tips:

Shipping costs can be overwhelming, right? I have learned a few tips to make my life easier.

I own a scale and a 4" x 6" mailing label printer to print shipping labels. I will add the links below. It took a little effort, but I thought about how I was going to send items, bought envelopes and boxes for each, mocked up a package for each and determined what the average costs would be for each item type. This helped me understand the true shipping fees to send any item I sold. I was sure to include the cost for each square of bubble wrap, an organza bag, a business card, a sticker and a mailing label.

I also use Pirate Ship to pay for my shipping labels. The USPS actually recommended them to me. There is no monthly fee, and they offer discounted rates for USPS and UPS. The really great part is that they can sync with Etsy, so all my transactions will automatically show up in my Pirate Ship account and with a few clicks, I can print labels easily.

I made a few shipping profiles that include the item I ship and how it is typically packaged. Once the address is input, the system will automatically generate a shipping label and you will know the cost.

Sample Item and Fees

The following is a fictitious item for sale, so you can see how the costs will affect your bottom line and you can plan accordingly.

Item Sample
Sell Price (without sales tax)	$25.00
Costs
Item Cost	($9.48)
Organza Bag	($0.08)
Business Card	($0.09)
Bubble Wrap with Tape)	($0.15)
Bubble Envelope	($0.20)
Sticker for Bubble Envelope	($0.21)
Shipping Cost	($3.50)
Mailing Label	($0.02)
Total	($13.73)
Etsy Costs (Approximate)
Etsy Transaction Fee (6.5%)	($1.63)
Etsy Listing Fee ($.20)	($0.20)
Etsy Processing Fee (3%)	($0.75)
Item Renewal Fee ($.20)	($0.20)
Total	($2.78)
Total Profit	$8.50

Other Tips:

The above fees are samples. Here is a link to all of the fees: Etsy Fees.

If someone asks me about purchasing multiple quantities of items, I try to make a custom listing for them. This helps reduce the amount of listing fees. It is one listing fee versus one for each individual item.

I hope this will help you on your Etsy journey. I love being on this platform. I have many return customers that I would not have had without it.

Product and Vendor Links:

Bluetooth Enabled Thermal Printer

4" x 6" Thermal Printing Labels

Digital Shipping Scale

Bubble Wrap

4" x 6" Bubble Pouches

Organza Bags

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