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Friday, January 27, 2023

Etsy Increases Seller Transaction Fee By 30 Percent, Angering Many

Etsy is hiking seller transaction fees from 5% to 6.5 percent, following a record-breaking fourth quarter in 2021, the company stated today. The business said in a report to investors today that the 30% hike will take effect on April 11th. When a seller makes a sale on Etsy, the transaction fee is a percentage of the entire order amount.

The increased cost to sellers comes as Etsy reported $717.1 million in fourth-quarter sales, which the firm attributes to a robust holiday shopping season. In the fourth quarter of 2021, Etsy attracted 10 million new buyers, increasing the total number of active buyers to a new high of 90 million. Following the release of the report to investors, stock prices rose more than 15% after market closing on Thursday.

In the study, Etsy CEO Josh Silverman adds, “We have proved our capacity to create enhancements that immediately translate into higher sales for our sellers, as seen by record sales per seller in 2021.” “With our increased transaction fee, we will be able to spend in crucial areas such as marketing and support, allowing us to build on our current great momentum.”

According to Etsy, the price hike would primarily fund “marketing, seller tools, and delivering world-class consumer experiences.” However, previous modifications to seller features, like as the contentious advertising program, have not gone down well with sellers, who are unable to opt-out in some cases.

Higher seller fees are sure to irritate Etsy sellers, who have often grumbled about the company’s modifications as it develops. Etsy increased transaction costs from 3.5 percent to 5 percent in 2018, and sellers additionally pay $0.20 for listing an item, plus payment processing fees.

Cedric Blackwater
Cedric Blackwater
Cedric is a journalist with over a decade of experience reporting on local US news, and touching on many global topics. He is currently the lead writer for Bulletin News.

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