Last week Etsy announced changes to their method of billing shops for their Etsy fees. This change has been announced several times in the last few months and it has finally rolled out.
What is Changes Did Etsy Make?
Let’s refresh quickly:
Old system: Shop owners sold products in their shop. On the first of each month, Etsy billed an outside credit card for the fees that shop owners accrued during the previous month.
New system: Etsy fees are deducted in real time from your shop payment account. This includes listing and transaction fees, marketing fees, and shipping labels purchased through Etsy. If your fees are more than you’ve made in your Etsy shop, you’ll be billed the first of the month.
What Do I Think of the New Billing Method?
Personally, I think it’s great. Here’s why:
- No more surprise charges at the beginning of each month. I know that a lot of Etsy owners don’t keep a close watch on their fees every month and their bill can be a surprise. No more!
- This change will make it more obvious if your shop is making money. Sadly, I see a lot of shops that don’t make any money – and the shop owner doesn’t work out the numbers to actually realize this!
- This should reduce the amount of scam shops. I’m talking about those shops that set up for a few months, have a bunch of sales, receive their funds, don’t ship the products they’ve sold, and close down the bank account before they can be billed. (Unfortunately, many of these are overseas.)
- It’s a smart business move for Etsy. By taking their fees out immediately, they won’t have to chase down shops that don’t pay. This should free up time to spend elsewhere on improving their marketplace. As sellers, we want a healthy marketplace.
Etsy’s New Payment Account Page
In addition to new billing methods, Etsy has redesigned the payment account page. It’s pretty self explanatory, but it now shows the amount due to Etsy (in most cases, this will be $0), the amount available for deposit, and it breaks down the fees related to each listing. Here’s a peek:
Read more about the changes at this link. What do you think of Etsy’s new billing method? Love it? Hate it? Let me know in the comments.
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