Etsy has updated their fees, I’m sure everyone already knows this. Before this update, I’m a little embarassed to say I didn’t really pay attention to what my markup was. I would take my total sales at the end of the month, subtract how much I spent on shipping and then subtract the amount I owed Etsy. This was how much I made that month and that’s all I cared about. I’m trying to scale my business and be more serious about it so I’m looking into every single product I sell and figuring out how much I’m making and if it’s enough.
Listing Fee: $0.20 (USD)
Listing Transaction Fee: 5%
Shipping Transaction Fee: 5%
Card Processing Fee (Sale): 3% + $0.25 (USD) *** This varies based on your location, find info here: https://help.etsy.com/hc/en-us/articles/115015628847
All fees taken from this article:
You’ll notice Etsy has updated their ‘Finance’ section where you have a breakdown of fees. I don’t know why, but I find this area very confusing and am not sure I like the new payments section. I didn’t understand what the ‘Sale’ fee was, I tried sending an email to ask but didn’t hear back. After some digging, I think this is the ‘card processing fee’. This is an example of the fee breakdown in the new Etsy udpate:
I’ve always used spreadsheets to track the monthly total in sales, shipping and production costs. These were necessary when it came time for taxes. I’ve added an additional spreadsheet were I track all the etsy fees mentioned above, so I can see if my markup is enough. It took me a couple hours… that might be sad but I’m not great at math. This makes it easy for me to see if I’ve marked up my products enough or if it’s worth even selling a specific product.
The colum ‘Cost’ is the total it cost me to actually make the product. If you are creating something like jewlery, I suggest a separate spreadsheet where you keep all your products and their breakdown of supplies. In this separate ‘Inventory’ spreadsheet I also have a column where I jot down the time it takes me so I can visualize the ‘hourly rate’.
In the spreadsheet ‘Etsy Fees’ you have 12 tabs for each month and one tab for the entire year. I use the monthly breakdowns to assess how much I’m charging. I use the yearly breakdown for taxes and to assess how much I’m making at a high level. I also use the yearly view to compare my sales from last year to see how much I’ve grown. You’ll notice in my ‘Yearly’ breakdown tab, the yellow row shows ‘sales + shipping (processing fee removed automatically). This is because when you download your ‘Orders’ reports from Etsy the ‘net’ amount actually has already subtracted the processing fees. I believe the amount you pay Etsy at the end of the month is just your transaction and listing fees.
I try to explain anything (including what I just mentioned) that may be confusing at the bottom of the spread sheet.
Maybe this seems basic to you, but it works for me and I’d prefer to not make it any more complicated than it already is. 🙂 You can grab the spreadsheets here, it’s a google drive folder with both the inventory and fee spreadsheet. To save, just download as XLS or CSV from the file menu and if you want to have it as a google spreadsheet on your own drive just open a blank spreadsheet and select ‘import’ under file.
To use the spreadsheet: In the monthy breakdowns enter in your etsy price, cost, listed shipping & actual shipping. The etsy fees, profit, markup and shipping loss is calculated for you. For the yearly page, enter everything except the total and LY vs TY.
I hope this all makes sense, and I hope it’s accurate – I did my best with the information I could find. Also, don’t worry these aren’t my actual sales 😉