Etsy on Thursday announced the fees increase on every online sale and the new tiered subscription plans for the online sellers.
With effect from 16th July 2018, Etsy which is known to be a low-cost platform to trade online has decided to increase its fees. The seller transaction fees will have an upturn from 3.5% to 5%, while another 5% fees will also be applied to shipping costs, which was not at all a part of Etsy fees before.
In sync with the fee announcement, Etsy also introduced three level plans “seller packages” which is optional for sellers.
- First level – standard plan – Include the same tools and services currently available and will be free.
- Second level – Etsy plus – Includes promotion and customization options and comes with a fee of $10 a month.
- Third Level – Premium level plan – Includes management tools for big businesses with employees and will also include customer support from sites. This will come into effect from 2019 and the fees is not yet disclosed.
Etsy authorities are of the view that they are constantly striving hard to help the sellers to reach their desired goals. So, they have introduced new tools to attract more buyers and run the business effectively. The platform will also increase its advertising massively which will attract more buyers to this site. The new subscription packages will guide a seller through various stages of his business growth.
Many sellers think that it would be an unaffordable affair for small businesses like them and so they are looking for new platforms that have lower fees. The increase in fees would have an impact on their final price of the product, which will also increase. But as we spoke to some sellers they feel that Etsy served as a backbone to them through their entire selling journey as they had no resources and they are open to paying more if it yields a better outcome.
There were mixed reviews by the online sellers of Etsy. This change would have a better impact on traffic and sales in this online marketplace. It is worth noticing that even if the prices are increased Etsy is still competitive as compared to Amazon and eBay.