With the new advertising fee structure that Etsy is implementing I will be closing up shop there. My Etsy name is Enchanted Stitches 528 where as my facebook and regular business name has always been Magical Memories by Jessica Boutique.
I will continue to sell through the two platforms below.
www.facebook.com/magicalmemoriesbyjessicaboutique
www.instagram.com/magicalmemoriesbyjessica
Let's look at what Etsy takes now and what they will be taking in the future and how I came to that decision. We all know that you pay to sell on different sites. Etsy's fees are pretty much in line with other platforms. From each sale which includes the shipping amount they take:
$.20 listing fee per item
5% transaction fee
3.5% payment processing fee
Not too bad! Right?
Now don't forget you also pay federal taxes on your sales, this includes ALL costs again, so this isn't the actual money you made, but what your item sold for including shipping. All your costs will come out at tax time EXCEPT tax laws changed in 2019. This was awesome for some people and others not so much. Being a small business it makes it so we no longer can itemize, therefore any cost rolled into my business is no longer taken into account.
cost of the tee
notions - stabilizer, thread, heat n bond, etc
I will continue to sell through the two platforms below.
www.facebook.com/magicalmemoriesbyjessicaboutique
www.instagram.com/magicalmemoriesbyjessica
Let's look at what Etsy takes now and what they will be taking in the future and how I came to that decision. We all know that you pay to sell on different sites. Etsy's fees are pretty much in line with other platforms. From each sale which includes the shipping amount they take:
$.20 listing fee per item
5% transaction fee
3.5% payment processing fee
Not too bad! Right?
Now don't forget you also pay federal taxes on your sales, this includes ALL costs again, so this isn't the actual money you made, but what your item sold for including shipping. All your costs will come out at tax time EXCEPT tax laws changed in 2019. This was awesome for some people and others not so much. Being a small business it makes it so we no longer can itemize, therefore any cost rolled into my business is no longer taken into account.
cost of the tee
notions - stabilizer, thread, heat n bond, etc
shipping
sewing machine and maintenance
supplies - iron, board, pins, etc
sewing machine and maintenance
supplies - iron, board, pins, etc
electricity
Wow! That is a lot of stuff coming out of that cost that isn't being accounted for anywhere.
NOW Etsy is implementing a mandatory advertising fee of 12% for stores that sold more than 10K in a year, this fee is mandatory forever. The fee is 15% if you didn't make the 10K threshold.
15% of total sale
Let's break down the price of a $24 tee that includes $4 shipping.
$28 x 23.5% +.20 = $6.78
Shipping -$4
Taxes of 15-30% depending on where you fall $4.20 - $8.40
= $8.82 left
PEOPLE! I haven't even paid for the tee yet or supplies!! On a good day, we'll assume I only spend $10 on the tee and all supplies.
I'm losing $1.18 PER SALE to sell an item now.
I think we can all see why ties with Etsy have to be cut. This is something that has been discussed before the new advertising fee being announced, this is just the icing on the cake that makes me really have to pull the plug.
WHY IS THIS SO HARD?
Because I LOVE what I do!
Etsy is so different than just selling on facebook!
Wow! That is a lot of stuff coming out of that cost that isn't being accounted for anywhere.
NOW Etsy is implementing a mandatory advertising fee of 12% for stores that sold more than 10K in a year, this fee is mandatory forever. The fee is 15% if you didn't make the 10K threshold.
15% of total sale
Let's break down the price of a $24 tee that includes $4 shipping.
$28 x 23.5% +.20 = $6.78
Shipping -$4
Taxes of 15-30% depending on where you fall $4.20 - $8.40
= $8.82 left
PEOPLE! I haven't even paid for the tee yet or supplies!! On a good day, we'll assume I only spend $10 on the tee and all supplies.
I'm losing $1.18 PER SALE to sell an item now.
I think we can all see why ties with Etsy have to be cut. This is something that has been discussed before the new advertising fee being announced, this is just the icing on the cake that makes me really have to pull the plug.
WHY IS THIS SO HARD?
Because I LOVE what I do!
Etsy is so different than just selling on facebook!
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