Following a record-breaking 2021 fourth quarter, Etsy has announced that it is raising seller transaction fees from five per cent to 6.5 per cent. That is a 30 per cent increase and it will come into effect on 11th April 2022.
Etsy added 10 million new buyers in the fourth quarter of 2021, bringing the number of active buyers to a record 90 million.
"We have demonstrated our ability to make improvements that directly translate into more sales for our sellers, as evidenced by record sales per seller in 2021,” Etsy CEO Josh Silverman says in the report. “Our new transaction fee will enable us to invest in key areas like marketing and support to further extend our strong momentum."
Etsy has grown substantially over the last two years due to shoppers spending more time at home and delving into the world of e-commerce thanks to the pandemic.
The popular marketplace has said that the increase in fees will mostly pay for “marketing, seller tools, and creating world-class customer experiences.” However, following a number of past changes to features for sellers, including the implementation of an updated Etsy advertising programme, it is likely that this announcement will not be well-received by many sellers.
Etsy last raised its transaction fees in 2018, when it went from 3.5 per cent to the current 5 per cent. Sellers also pay $0.20 for listing an item, plus payment processing fees.
If you’re an Etsy seller, what do you think about this latest announcement? Please share your thoughts with us on Twitter, @SellWithAthlete.