By Michael Guta/Small Business Trends
Etsy (NASDAQ: ETSY) recently announced a fee increase which for the first time will also include shipping costs. But the blow might be somewhat softened by the announcement of two new features designed to help small businesses market their products on the platform.
The increase takes the transaction charged on sales from 3.5% to 5% — but importantly the percentage will no longer be calculated just from the amount customers pay for your product. The cost you charge customers for shipping your product will now also be part of the equation making the overall cost being paid by sellers even higher.
On the bright side, the company says it will also introduce two new Plus and Premium subscription levels with advanced tools to help shop owners grow and increase their visibility.
The vast majority of Etsy sellers are small businesses who use the platform to supplement their physical stores or other eCommerce channels. With around 2 million sellers, Etsy has become an industry in itself and the premiere go-to platform for handmade crafters and vintage buyers and sellers.