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How Much Does It Cost to Sell on Etsy, and Is It Worth It?

Before creating captivating listings and opening a shop on one of the best online selling platforms, it's important to know everything about the costs associated with the marketplace platform. In this guide, we'd like to finally answer - how much does it cost to sell on Etsy and is it worth it? So, if you are in two minds about whether to dip your toes in this industry without rumbling under financial pressures, read our guide first.

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What are the costs of selling on Etsy? Gather all details right here!

So, How Much Does It Cost to Sell on Etsy?

Wondering how much does it cost to sell stuff on Etsy? Here is a general calculation. There are a few intricacies when it comes to definitely determining how much an online reseller will have to pay for using the platform. First and foremost, there is a listing fee of £0.15 that is charged once you publish the listing. The charge is covered for four months or until a buyer purchases it. A seller can set the charge to be renewed automatically after four months. 

Once the item gets sold, the transaction fee will be charged, which is 6.5% of the price. Take into account that there is a payment processing fee as well for the United Kingdom, and it costs 4% of the total sales price plus a flat fee of £0.20 per order. Bear in mind that shipping costs can sometimes affect this if you offer the customer a free shipping option on your account.

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Calculate all the payments that will need to be settled before pricing the item

Overview of All Types of Fees That You Might Encounter by Selling on the Platform

We've answered generally how much it would cost a casual reseller on the platform to create a listing and offer it to a buyer. However, if you are a serious entrepreneur who wants to start a successful e-commerce business, knowing the ins and outs of all fees is essential for conducting. Let us now provide you with an overview of what each charge represents and how much it is so you can plan how to increase your sales effectively.

The Mandatory Charge Before the Item Gets Purchased - The Etsy Listing Fees

Reselling an item on the platform costs. Therefore if you want to post a product, it will cost you £0.15. This is a fixed price, and it does not change, no matter the price or value of the product. It is charged every four months. 

Of course, if the item gets taken down earlier, nothing will need to be paid. What is essential to know is that if there is more than one product within the same listing, the charge needs to be paid for all of them.

On top of this, a UK seller needs to pay VAT on this charge. The rate is 20%, so 3p will have to be allocated for the tax. However, don't think that this tax will take a lot from the profit of your online store since there are tax deductions that can be claimed.

The Next Selling Charge Is the Transaction Fee

The platform charges the transaction fee since you are allowed to use the platform. This is a very intricate detail that needs to be remembered, that it depends entirely on the product's price. Since April 2022, the charge has been 6.5% of the total price. You won't have to worry about the transaction charge until sales happen. Of course, remember that the UK tax applies to this charge as well.

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The sale price of a product needs to be allocated based on the platform's charges

UK Sellers Will Encounter Regulatory Fee

All UK online sellers need to pay the regulatory fee when they participate in the world of online selling marketplaces. So, when you use Depop, Vinted, eBay, and Etsy, you need to pay the regulatory charge. Sometimes it is absorbed into the usage fees; sometimes, however, it can be hidden. Etsy's regulatory fee is 0.25% of the sale. This includes the price of the item, shipping costs, and extras like the payments of gift wrapping if you are reselling holiday gifts. We need to remind you not to forget the shipping costs when calculating the charges.

The Final Mandatory Charge Is Payment Processing Fee

Since there is a system for processing payments in place, the platform charges the sellers for money transfers. For instance, UK sellers need to pay 4% of the total sale and £0.20. In case you use PayPal, a commission will need to be paid. The VAT will also apply to the payment processing charges. The good news is the payment processing fee is the last mandatory charge for an Etsy shop. If you are new to the platform, take into account the tips provided in the following video to create a good foundation and help your e-commerce business succeed.

Additional Fees That Can Make the Process of Selling More Efficient

Now you know the rudimentary how much selling on Etsy costs, but if you want to improve your shop, additional features are needed, and for those, one needs to make additional payments. Here is a list of additional fees so you can calculate and get the answer to - how much does it cost to sell things on Etsy when using additional features:

  • Offsite ads: So, if you want to promote your products on different sites and increase sales, you will have to pay an offsite ads charge. This charge is 15% of the entire sale (this means the price of the product, shipping price, and packaging costs).
  • Etsy ads: Additional visibility on the Internet can be achieved via this useful feature. When a buyer searches for a particular item, yours will show up higher in results. The price depends on how much you want your item to appear in search results.
  • Etsy Plus: An upgraded version of the platform brings additional tools and features for increasing sales, such as marketing tools, listing credits, and customizable shops. The monthly subscription is £7.80.

So, Does Reselling on This Platform Bring Profit to A Seller? Is It Worth It?

The final answer is yes. However, it depends on several factors. Sellers who offer high-quality products and marketing strategies as well as great customer service sell faster and thus grow their business easily. 

However, there is a trick that can make venturing into the online selling world effortless - online selling tools. If you want to make an impact with your e-commerce business and prove yourself as a top seller, a crossposting tool is needed. 

With crossposting software, you can reach numerous buyers not on just one platform but on various other platforms. So, if an item proves to be unsuccessful on one site, it can find a buyer on multiple different platforms such as Depop, Vinted, eBay, or any other platform.

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Employ a hidden technique that won't let you fail on the online platform - a cross-listing software

With Zipsale, The Best Crossposting App, Reselling Online Is Worth It

Your best bet to overcome taxes and miscellaneous charges is with a great crossposting software that will allow your e-commerce business to quickly grow. Zipsale is the best multichannel listing software that can put your shop on the map. It tracks orders and delists anything automatically when it gets purchased. You won't have to create listings on each site's account but do everything from one inventory. Use this selling software, and you won't have any problems paying fees.

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