A few questions about selling on Etsy?

[LovesTimone]

I have been working on getting ready to launch my little side business on Etsy, but a friend who has been selling there for a long time said with the price increase not to. She is really upset... She said she may have to raise her prices 10 to 15 percent, to cover the price increase, or go back on the craft fair circuit, or close her business.

I have been doing some research and if I understand this correctly what is happening with the new fee structure, so you have your listing fee, then there is an increase from 3.5 percent to 5 percent plus the fee of 5 percent will apply to the cost of shipping, plus if you want to upgrade (Plus) its 10 dollars a month until January then it goes to 20 a month, then in 2019 ( Premium) will be available and no cost is projected for this option.

She stated that if you don’t upgrade then your items don’t get seen, and she feels like she is being strong armed.


She sells, beautiful handmade soaps, essential oils, made to order potpourri, candles, and has just started with some bath bombs, and body oils: she was showing me how this will effect her business... her basic order is around 35.00 and shipping on that is around 4.00 dollars.

So she before she paid .20 to list, and 1.23 when the item sells. So 1.43

Now it’s

.20 cent to list, 1.75 when the item sells, and now postage will be .20 ... so now 2.15

.72 cent on one transaction, but monthly she sends out about 300 - of the her package soaps (6).. so now it will cost her about 216.00 more per month and that’s just on her 6 packs of soaps for one month... plus the 10.00 dollars for the upgrade to (Plus)

So now I am wondering if this would be a good fit for me, suggestions, or insights would be most helpful. I know I am going to have to rethink pricing. I haven’t opened my account yet, I want to be smart, and hit the right price, without being over priced. Really any help will be appreciated...

 

[kaytieeldr]

She said she may have to raise her prices 10 to 15 percent, to cover the price increase,

.20 cent to list, 1.75 when the item sells, and now postage will be .20 ... so now 2.15

I know this doesn't answer your questions, but I'm confused. Her cost is increasing $.72, so she's anticipating increasing her [soap] prices by $3.50-$5.25? I'm not even considering the $10-$20 annual Premium cost, since even $20 per year increases her per-order soap price by less than $.006.

 

[supersnoop]

Is there a less expensive way to reach a market of that magnitude? As a marketplace grows, it becomes more valuable. She could save $200 by spending a lot more time at craft fairs and losing 75% of her sales. Not the best move.

 

[kaytieeldr]

And supersnoop's advice would probably benefit you, too, in deciding how to market your crafts.

 

[LovesTimone]

Is there a less expensive way to reach a market of that magnitude? As a marketplace grows, it becomes more valuable. She could save $200 by spending a lot more time at craft fairs and losing 75% of her sales. Not the best move.

Her business is her only source of income right now, she is single and a RN, and she moved in with her parents, both have some really serious health issues so she can care for them and know what's going on, and manage their financial needs as well. She worked in hospice for years and really needed a break. I think that she was just so upset with a lot of things. She has been working on a couple of side options, a couple(3)of boutiques are doing a trunk show of sorts, with a collection of her summer items, and she has already has had to restock 2 of the boutiques, and one has already placed orders for fall and Christmas.

With my business being just more of a fun thing to do, and I can earn more money for traveling. I think that if I find the sweet spot on pricing... I will be okay.
I guess I should have said what my craft is....I sew, pillowcases/shams, throw pillow shams, table runners, napkins, tablecloth's or whatever strikes my creative bug to try. I do more one of a kind items, custom items. I like to make something that is different and unexpected.

 

[kaytieeldr]

Okay. Standard craft pricing advice: multiply your material costs by three. Add in any expenses, like the Etsy fees. Then look for similar items and compare your calculations to other crafters.

 

[cwoww]

i used to sell on Etsy - i make vinyl decals, shirts, etc. I moved over to just marketing with my FB page for my business. I would rather use paypal and create my own audience than use Etsy anymore. I also use the FB marketplace.

 

[TCB in FLA]

I’ve been selling on Etsy for about 20 months, selling crafts as a part-time job for more than four years. I did fairly well last year, got my listings up, really worked on my photos. But this year... I’m tanking and it just gets worse each month. And my business FB Page posts have maybe a third of the exposure of years past because I don’t pay to promote. I never made a huge profit, but loved what i did and enjoyed being a one-woman business. But between these extra fees, the postage increases, the paperwork (bookkeeping, income taxes, quarterly state sales tax), now it’s really not worth my effort. I’m considering if I want to keep going on the craft fair circuit (not huge here) and with the retail partnerships I have (mainly used for “status” rather than an income boost). I’m basically waiting until my boys return to school, then will start looking for a “real” job. Unless you have a super unique product or a healthy profit margin, I’m not sure how folks can make it on Etsy.

 

[LovesTimone]

Okay. Standard craft pricing advice: multiply your material costs by three. Add in any expenses, like the Etsy fees. Then look for similar items and compare your calculations to other crafters.

Thank you, any help is so much appreciated.