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What are the payments required to sell on Etsy? How is VAT collected on Etsy seller fees? We will cover these topics in the Etsy 2023 Fee Guide.
Etsy, founded in 2005 in Brooklyn, NY USA, operates as a platform where only handmade products are sold. With approximately 4 million active sellers and over 70 million active buyers, it is one of the world's largest online marketplaces.
The biggest advantages of selling on Etsy are increasing brand awareness, earning income in foreign currency, and increasing customer potential. Apart from these advantages, to comment as a whole, it is known that e-exporters selling in marketplaces sell their products mostly to buyers living outside Turkey. Many people who produce their own handcrafted products also sell their products abroad on Etsy. In this way, they can reach buyers from different regions and countries more easily and increase their customer base.
In this blog content, we will share with you Etsy sales fees, transaction fees, advertising fees, and much other information you need, which is a highly curious topic.
What is an Etsy Payment Account? How to View It?
An Etsy payment account is the page that allows you to pay the amount due and enables the deposition of available Etsy Payment sales funds.
To view your payment account:
• Open "Shop Manager" or the "More" tab in the Sell on Etsy app on Etsy.com.
• Click on “Finances.”
• Click on “Payment account.”
What Fees Should Etsy Sellers Know?
When selling on Etsy, listing a product, and selling, there are some fees that Etsy sellers must pay. These fees are divided into three:
• Product listing fees
• Transaction fees
• Payment processing fees
What Are Etsy Listing Fees?
Adding any product to your Etsy shop is called listing. Listing fees are the fees you pay to list the products you sell on Etsy. For each product you submit, Etsy charges you a fee for listing.
Etsy charges the seller a flat fee of $0.20 per listing. This fee is strictly charged regardless of whether the product sells or not. This fee is automatically charged to your payment account when you publish any item.
Fee for Renewing a Sold Item
The renewal fee saves you time by automatically republishing a purchased listing from your shop so you do not have to manually re-upload items. If you set a listing to automatically renew and the listing you saved is purchased, the $0.20 listing fee will be charged to your account.
Multi-Quantity Listing Fee
If you have different variations of a product you sell on a single listing and a customer purchases more than one variation, you pay the standard listing fee of $0.20 for each different product sold from the listing. Additional fees are not sent until bulk purchases are made.
Private Listing Fee
Private listings are efficient when you want to publish a private sale to a specific group of buyers. Private listing fees are subject to the standard listing fee of $0.20.
What Are Etsy Transaction Fees?
When a customer purchases an item from your shop, Etsy charges you a transaction fee. We can also call this fee Etsy's commission. What makes transaction fees different from listing fees is that transaction fees are only charged for listings that make a sale.
The basics of transaction fees:
• Etsy charges a 6.5% commission from the seller on your total orders in the currency you set.
• This charge is calculated based on the total cost of the item. You will see this charge separate from your payment account.
• The transaction fee amount is automatically sent to your payment account.
Product Shipping Costs
Etsy does not offer its own shipping service. If you are selling on Etsy, you can ship through a service provider you have an agreement with. You can price the shipping separately according to the place or region you are sending to and receive payment from the buyer, or you can offer free shipping and cover it yourself.
If you are a seller and do not have an agreed shipping company or shipping service, you can get the most affordable shipping rates to any destination in the world through Navlungo and deliver your products to your customers quickly. Moreover, you can connect your Etsy shop to the Navlungo panel with a few clicks, experiencing the comfort of managing your entire overseas shipping process effortlessly and without confusion.
What are Etsy Payment Processing Fees?
Payment processing fees on Etsy are a specific flat rate plus a percentage of the total sale price of the item. This percentage and rate vary from country to country. Payment processing fees are taken from the total sale price of the item, including shipping costs and any applicable sales taxes. A payment processing fee is charged for every transaction using Etsy Payments. These fees appear in your payment account and are deducted before any funds are deposited. Additionally, if a refund is processed for a sale made via Etsy Payments, the payment processing fee is credited proportionally and balanced against the refund amount.
What is the Etsy Transaction Fee in Turkey?
Payment processing fees for Etsy Payments orders vary from country to country and depend on the country where the bank account linked to your Etsy account is located.
One thing to keep in mind is that Etsy Payments transactions are subject to VAT. The VAT fee collected will appear on the sellers' VAT invoices where required. The payment processing fee for Turkey is set as: 6.5% + 3 TRY.
What Are the Deposit Fees for Etsy Payments in Turkey?
Subject to some Etsy Payments countries, there is a fee threshold, a deposit fee along with a minimum required deposit amount. These amounts vary from country to country, just like transaction fees. Deposit fees for Turkey are determined as follows:
• Minimum deposit: 50 TRY
• Fee threshold: 600 TRY
• Deposit fee: 42 TRY
What are Etsy Advertising Fees?
Etsy Ads are advertisements displayed on Etsy that all shop owners can start and stop from their payment dashboard at any time.
There are two different ad campaign models on Etsy. These are split into Offsite Ads and Etsy Ads. Briefly summarized, Offsite Ads is the advertising model that Etsy runs off-site and only charges a commission if a sale happens due to the ads. On the other hand, Etsy Ads is the promotion of a specific product or group of products being sold by the seller in search results and category pages on Etsy, within the budget set by the seller.
How is VAT Collected on Etsy Seller Fees?
Calculating VAT on Etsy is quite a complicated process. VAT is calculated over the Turkish VAT rate of 18% on the remaining fees after Etsy takes the transaction fees (commissions) explained above for each sale made. For example: You made a sale of a product worth 1000 TRY. The Etsy commission and tax calculation is done as follows:
• Transaction fee: 5% (50 TRY)
• Payment processing fee: 6.5% + 3 TRY (68 TRY)
• Separate VAT fee for the above two transactions: 18% (9 TRY + 12.24 TRY)
From these transactions, the total of your Etsy and VAT payment is 139.24 TRY. The remaining amount, in this case 860.76 TRY, is reflected in your account. At this point, we should also add another thing. If the balance in the account is below a certain amount, an 18% Etsy sales tax deduction may also be made.
Let's Join Forces
You have opened your shop on Etsy and started selling. Now that you have learned about the fees through this blog, you may need both storage and shipping for the products you will sell. As Navlungo, with the Etsy integration that we have described in detail in our blog post, you can ship your products quickly and safely to anywhere in the world.
Frequently Asked Questions About the Etsy Fee Guide
What is an Etsy Payment Account? How to View It?
An Etsy payment account is the page that allows you to pay the amount due and enables the deposition of available Etsy Payment sales funds. To view your payment account: Open Shop Manager or the More tab in the Sell on Etsy app on Etsy.com. Click on Finances. Click on the Payment account section.
What Are Etsy Listing Fees?
Adding any product to your Etsy shop is called listing. Listing fees are the fees you pay to list the products you sell on Etsy. For each product you submit, Etsy charges you a fee for listing. Etsy charges the seller a flat fee of $0.20 per listing.
What is the Etsy Transaction Fee in Turkey?
Payment processing fees for Etsy Payments orders vary from country to country and depend on the country where the bank account linked to your Etsy account is located. One thing to keep in mind is that Etsy Payments transactions are subject to VAT. The VAT fee collected will appear on the sellers' VAT invoices where required. The payment processing fee for Turkey is set as: 6.5% + 3 TRY.
