Etsy Fee Changes 2018

If you have an Etsy shop, you probably have already heard of the changes coming to Etsy in July  2018.  But, if you’re considering starting a new shop, then these new policies will be important to you.

Etsy Fee Changes for 2018 by Carmen Whitehead Designs

Etsy will be implementing 2 important changes effective July 16, 2018.

  • The 3.5% transaction fee you pay when you make a sale is increasing to 5% and it will now apply to the cost of shipping


  • Get access to advanced tools with two new seller packages

Let’s take a look at each of these changes individually.   Transaction Fee:

Ever since I’ve been on Etsy (since 2012), the transaction fee has been set at 3.5% and it was applicable to the item only (not shipping).  The small percentage is not a huge deal to me because I felt I was on a busy platform and my profit margin was good.

But, with the increase in fee to 5% and now it applies to the total sale (including shipping), then all of a sudden my profit margin has shrunk!  So, if your profit margin was pretty small already, then you may need to look at increasing your product price or find a way of reducing your costs to make up the loss.  Here is an example for a $30 product with $3.00 shipping…

One of the reasons that Etsy is now including shipping in the transaction fee charge is that many sellers would price their product low and increase their shipping costs.  So, they were charged 3.5% on a low product price and made up the costs in charging more for shipping (that’s clever!). But, Etsy has caught on and they are now including shipping.

Note: The $0.20USD listing fee and payment processing fees, which vary by country, will stay the same.


Etsy does state that they will be using these new fees revenue to invest in more advertising and  bringing even more shoppers to the platform.

Now let’s take a look at New Seller Packages:

Everyone will continue to have the standard tools you use today. You can continue to use paid tools like Promoted Listing or a Pattern website a la carte without choosing a package.

Very soon they will be introducing 2 new optional monthly packages for sellers.  These new packages give you access to a suite of new tools designed for shops at different stages of growth. The tools you use today will continue to be available at no additional cost and you can switch packages at any time.

Here is what you get with the Plus package:

Should I stay or should I go?

So, what will I be doing?  Well, I have 2 Etsy shops, Carmen Whitehead Designs (my print shop) and The Mug Life (ceramic mugs).  I’ve thought quite a bit about this, as have many other sellers, and I’ve decided  for now to keep my print shop open with instant downloads and some prints.  

The mug shop will be closing 7/16/18.   With these new fees, my profit margin will be reduced even more and raising prices on my mugs would put me out of competition with other shops.  It’s a tough decision, but for me, it’s the right one.  As for the Plus Package, I will take a look at it and perhaps participate for 6 months.  I’ll take a look at my sales results at that point.

I will also look into placing a shop directly onto my website.  It’s something I had in the past, but because of Etsy’s advertising reach, I decided to stay on that platform.  But, many sellers are looking at this option of having their own website.  This is a very good idea because you should have a backup option available to you if Etsy gets too expensive or maybe even one day closes it’s doors.  I will keep you updated on what WordPress plugin I use to set up shop on my website.

What about you?  If you have an Etsy shop, will you be staying and participating in the new packages?  Let me know in the comments below.  If you haven’t started your shop yet, here is a link to Etsy and you can receive 40 free listings when you do open a shop.

Thanks so much for visiting today friends!



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One thought on “Etsy Fee Changes 2018

  1. dad bowers says:

    have a etsy shop, but with the changes I have let it chill. No new products. I am very concerned about this change and how etsy went about doing it. many folks/sellers railed against these changes but, apparently fell on deaf ears at etsy. gotta keep the shareholders happy and fat. Last season was the best I had in 4 years on etsy and figured that this coming season would be good because I worked hard to get good reviews and keep my customers happy. etsy has changed its financial forecast from about 22% increase to about 40% increase. Wow, guess we little sellers will have to up the prices on items that are already nearing their cost caps; which will only serve to add to the coffers of etsy… well, we wont get fooled again … as the song says. Cheers Etsy.

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