While most Etsy sellers understand that there is a $.20 fee to list an item and a 3.5% transaction fee when it sells, I routinely see confusion when it comes to payment processing fees and how fees are treated in the case of a refund. So today’s post is going to cover multiple questions relating to Etsy fees.
Do I pay just one $.20 listing fee no matter what quantity I list?
At that exact moment in time, yes. But when you list a quantity of more than one, that listing automatically renews each time it sells until it is sold out. And each renewal generates a new listing fee. This is classified on your bill as Auto-renew sold. Also, if you sell multiples of that item in one order, you will be charged $.20 for each item beyond the first one. This is referred to on your bill as Multi-quantity fee. So don’t believe the myth that if you list an item with 100 available, you’ll only ever be charged one $.20 listing fee.
But that’s crazy if I have an item that costs $1.00. Are you saying the listing fee alone for each one I sell will be 20% of the price?
Yep. While the listing fee in general is very reasonable, especially considering it’s good for up to four months, it can really cut into profits with low-ticket items. If you have an item that usually sells in multiples, I highly recommend that you use listing variations to create bundles. For example, if you sell cupcake toppers, you could create variations for Set of 10, Set of 15, Set of 20 (or whatever), and then you would only pay $.20 on each set that sells rather than on each individual topper.
Does the Etsy Payments fee go on my monthly bill?
No. The Etsy Payments fee is the fee associated with Etsy being the payment processor, and it is deducted from the payment at the time of each transaction. So on your shop payment page, you’ll see a credit and debit for each sale. (If you accept PayPal only, this does not apply.) The monthly bill includes listing/renewal fees, transaction fees, shipping labels purchased, and charges for promoted listings.
If a customer wants to cancel an order and get a refund, do I get all my fees back?
Yes, if you go through the steps correctly, you will be refunded the $.20 listing fee, the 3.5% Etsy transaction fee, and the full Etsy Payments fee. [If you’re an oldie but goodie with standalone PayPal, they will refund the 2.9% (US) variable portion but not the $.30 (US) fixed portion of the payment processing fee.]
But please note that you must actually cancel the transaction after refunding in order for the listing and transaction fees to be refunded. It does take a few days, so a canceled transaction will show as pending for a while. Don’t ever mark a refunded transaction as shipped just to clear it from your open orders. It will confuse your records and you won’t recover your fees.
I hope that provided clarity on how Etsy fees work in various circumstances. Please leave a comment if you have a different question about fees that I didn’t cover.
See you tomorrow for Day 10 of 31 Days of Etsy Seller Q & A.