Etsy is Set to Take an Even Bigger Cut of Your Hard Earned Dollars

I admit it... I tried the Etsy thing and I hated it. The competition is so fierce on the site that it's nearly impossible to thrive - unless you're willing to pay extra for ads and other perks. 

Now it's about to get even more difficult for struggling Etsy shops to keep their heads above water. Etsy just announced fee hikes and new tier structured plans. The plans launch in 2019 and include what Etsy is calling:

• Standard (no monthly fee)
• Plus ($10 Monthly fee)
• Premium (Fees yet to be announced)

Fees will be jumping from 3.5% to 5%. Ouch.

Below is the email I received the other day. It included a lovely, heartwarming video and a link for sellers who want to know more about how Etsy is bilking cottage businesses out of even more money. I chose not to include those in this post. 

If you have any feedback I'd love to hear it. Feel free to post your comments below.

The Email:

Dear Seller Community,

We’re writing to tell you about some changes at Etsy. We’ve been helping sellers on their creative journeys for 13 years now. We’ve focused on making Etsy the best place to run your creative business, and we’ve listened to sellers like you to learn more about what you need from us. 

Now, we’re planning to invest even more in bringing buyers to Etsy, building seller tools, and improving your seller experience. To help make this happen, we’re updating our fees, and we’re adding some new features. 

Effective July 16, Etsy’s transaction fee will increase from 3.5% to 5% and it will also apply to the cost of shipping. All other fees, including listing fees, will remain the same.

We’re also introducing new optional feature packages designed around the needs of sellers at different stages of growth, so you can access the right tools at the right time for your business. 

If you’re happy with the services you currently use on Etsy, you can still access all the tools that are currently available to you without paying a monthly subscription fee. But if you want to do more, we’ll be offering two new plans: Etsy Plus, with tools to help businesses grow and express their unique brands, will be available in July. Etsy Premium, with more advanced tools for larger-scale businesses, will launch in 2019. 

Explore our video and website to learn more about what’s changing and look for more information in the weeks to come. We’re excited to see what’s next for all of us as we continue to invest more in growing your business, together.