What are the fees required to sell on Etsy? How is VAT collected on Etsy seller fees? We will cover these topics in the Etsy 2023 Fee Guide.
Etsy operates as a platform where only handmade products are sold, founded in 2005 in Brooklyn, NY, USA. It is one of the world's largest online marketplaces, with approximately 4 million active sellers and over 70 million active buyers.
The biggest advantages of selling on Etsy can be increasing brand awareness, earning income in foreign currency, and increasing customer potential. Aside from these advantages, to comment on it as a whole, it is known that e-exporters selling in marketplaces mostly sell their products to buyers living outside Turkey. Many people who produce their own handcrafted products also sell their products abroad on Etsy. In this way, they can reach buyers from different regions and countries more easily and increase their customer base.
In this blog content, we will share with you the selling fees, transaction fees, advertising fees, and much more information you need on Etsy, which is a highly curious topic.
What is an Etsy Payment Account? How to View It?
An Etsy payment account is the page that allows you to pay the amount due and deposit available Etsy Payment sales funds.
To view your payment account:
• Open the "Shop Manager" or "More" tab in the Sell on Etsy app on Etsy.com.
• Click on "Finances".
• Click on "Payment account".
What are the Fees Etsy Sellers Need to Know?
When selling, listing, and transacting products on Etsy, there are certain fees that Etsy sellers must pay. These fees are divided into three:
• Listing fees
• Transaction fees
• Payment processing fees
What are Etsy Listing Fees?
Adding any product to your Etsy shop is called a listing. Listing fees are the fees you pay to list the products you sell on Etsy. For each item you post, Etsy charges you a listing fee.
Etsy charges the seller a flat fee of $0.20 per listing. This fee is strictly charged regardless of whether the product sells or not. This fee is automatically applied to your payment account when you publish any item.
Sold Item Renewal Fee
The renewal fee automatically average-reposts a purchased listing in your shop, saving you time by not having to manually upload items once again. If you set a listing to renew automatically and the listing is purchased, the $0.20 listing fee will be charged to your account.
Multi-Quantity Listing Fee
If you have different variations of a product you sell within a single listing and a customer purchases multiple variations, you pay the standard listing fee of $0.20 for each different item sold from that listing. Additional fees are not processed until the bulk purchases are made.
Private Listing Fee
Private listings are efficient when you want to publish a private sale to a specific group of buyers. Private listing fees are subject to the standard $0.20 listing fee.
What are Etsy Transaction Fees?
When a customer buys an item from your shop, Etsy charges you a transaction fee. We can also call this fee Etsy's commission. What makes transaction fees different from listing fees is that transaction fees are only charged on listings that sell.
Basics of transaction fees:
• Etsy charges a 6.5% commission from the seller on your total orders in your designated currency.
• This charge is calculated based on the total cost of the product. You will see this charge separate from your payment account.
• The transaction fee amount is automatically posted to your payment account.
Product Shipping Costs
Etsy does not provide its own shipping service. If you sell on Etsy, you can send the shipment from a carrier you have agreed with. You can price the shipping cost separately according to the location or region you will send to and collect the payment from the buyer, or you can make it free and cover it yourself.
If you are a seller and do not have an contracted shipping company or shipping service, you can get the best shipping prices to all over the world through Navlungo and deliver your products to your customers quickly. Moreover, you can link your Etsy shop to the Navlungo panel with a few clicks, and enjoy the convenience of managing your entire international shipping process effortlessly and without confusion.
What are Etsy Payment Processing Fees?
Payment processing fees on Etsy are a set rate plus a percentage of the total sale price of the product. This percentage and rate vary from country to country. Payment processing fees are taken from the total sale price of the product, including shipping fees and any applicable sales tax. A payment processing fee is charged for every transaction using Etsy Payments. These fees appear in your payment account and are deducted before any funds are deposited. Additionally, if a refund is initiated for a sale made via Etsy Payments, the payment processing fee is credited proportionally and adjusted to the refund amount.
What is the Etsy Processing Fee in Turkey?
Payment processing fees for Etsy Payments orders vary depending on the country of the bank account linked to your Etsy account.
One point to keep in mind is that Etsy Payments transactions are subject to VAT. The collected VAT fee will appear on the sellers' VAT invoices where required. The payment processing fee for Turkey is set at: 6.5% + 3 TRY.
What are the Deposit Fees for Turkey Etsy Payments?
Subject to some Etsy Payments countries, there is a fee threshold, a deposit fee, along with a minimum deposit amount that must be paid. These amounts vary from country to country, just as in transaction fees. Deposit fees for Turkey are determined as follows:
• Minimum deposit: 50 TRY
• Fee threshold: 600 TRY
• Deposit fee: 42 TRY
What are Etsy Advertising Fees?
Etsy Ads are advertisements displayed on Etsy that all shop owners can start and stop from their payment panel at any time.
There are two different advertising campaign models on Etsy. These are divided into Offsite Ads and Etsy Ads. Briefly summarized, Offsite Ads is the advertising model that Etsy places outside the site and only charges a commission if a sale occurs because of the ads. Etsy Ads, on the other hand, is the promotion of a specific product or product groups that the seller is selling in the search results and category pages on Etsy, within the budget determined by the seller.
How is VAT Collected on Etsy Seller Fees?
Calculating VAT on Etsy is a fairly complex process. VAT is calculated at Turkey's set VAT rate of 18% after Etsy takes the transaction fees (commissions) we explained above as a result of each sale made. To give an example; let's say you made a sale of a product worth 1000 TRY. The Etsy commission and tax calculation is done as follows:
• Transaction fee: 5% (50 TRY)
• Payment processing fee: 6.5% + 3 TRY (68 TRY)
• Separate VAT fee for the above two transactions: 18% (9 TRY + 12.24 TRY)
The sum of your Etsy and VAT payment from these transactions is 139.24 TRY. The remaining amount is reflected in your account as 860.76 TRY. At this point, we should also add something else. If the balance in the account is below a certain amount, an 18% Etsy sales tax deduction can also be made.
Let's Join Forces
You opened your shop on Etsy and started selling. Since you have also learned about the charges through this blog, now you may need both storage and shipping for the items you are going to sell. As Navlungo, with the Etsy integration we explained in detail in our blog post, you can ship your products quickly and securely to all over the World.
Frequently Asked Questions About the Etsy Fee Guide
What is an Etsy Payment Account? How to View It?
An Etsy payment account is the page that allows you to pay the amount due and deposit available Etsy Payment sales funds. To view your payment account: Open the Shop Manager or More tab in the Sell on Etsy app on Etsy.com. Click on Finances. Click on the Payment account section.
What are Etsy Listing Fees?
Adding any product to your Etsy shop is called a listing. Listing fees are the fees you pay to list the products you sell on Etsy. For each item you post, Etsy charges you a listing fee. Etsy charges the seller a flat fee of $0.20 per listing.
What is the Etsy Processing Fee in Turkey?
Payment processing fees for Etsy Payments orders vary depending on the country of the bank account linked to your Etsy account. One point to keep in mind is that Etsy Payments transactions are subject to VAT. The collected VAT fee will appear on the sellers' VAT invoices where required. The payment processing fee for Turkey is set at: 6.5% + 3 TRY.
