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In February 2024, Etsy introduced a new one-time setup fee for new sellers, marking a significant shift in its onboarding process. This fee aims to enhance platform security and ensure a higher commitment level from new shop owners.
*This article was generated partially with the assistance of ChatGPT, a large language model developed by OpenAI.
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Understanding the Etsy Setup Fee
The Etsy setup fee is a non-refundable charge required to open a new shop on the platform. Initially set at $15, this fee is now variable, ranging between $15 and $29, depending on factors such as the seller’s location and the specifics of the shop being established, according to eRank Help. The exact fee applicable is clearly displayed during the shop setup process.
This fee is processed after the onboarding is complete, and the shop is ready to receive orders. It’s important to note that the setup fee is exclusive of any applicable taxes, which may be added based on local regulations, according to Etsy.
Purpose Behind the Fee
Etsy’s primary motivation for implementing the setup fee is to bolster the platform’s security measures. By introducing this fee, Etsy aims to deter fraudulent activities and ensure that new sellers are genuinely committed to running a business on the platform. The funds collected from this fee are allocated towards enhanced security checks and ongoing support for new shops, according to Etsy.
Who Is Affected?
The setup fee applies to all new shops created after September 15, 2024. This includes additional shops opened by existing sellers. However, shops established before this date are exempt from the fee.
Promotional Waivers
Etsy occasionally offers promotions that can offset the setup fee. For instance, new sellers who subscribe to Etsy Plus during their shop setup process and maintain the subscription for at least six consecutive months may receive a credit equivalent to the setup fee. Such promotions are subject to specific terms and conditions and are communicated during the onboarding process, according to Etsy.
Additional Fees to Consider
Beyond the setup fee, Etsy charges other fees that sellers should be aware of:
- Listing Fee: $0.20 USD per item listed, valid for four months or until the item sells.
- Transaction Fee: 6.5% of the total order amount, including shipping and gift wrap.
- Payment Processing Fee: Varies by location and is applied per transaction.
- Advertising Fees: For sales attributed to Etsy’s Offsite Ads, a fee of 12% is charged if the seller has made $10,000 USD or more in sales over the previous 365 days
Conclusion
The introduction of the Etsy setup fee represents the platform’s commitment to maintaining a secure and trustworthy marketplace. While it adds an initial cost for new sellers, the fee supports enhanced security measures and ensures that new shops are serious about their business endeavors. Prospective sellers should factor this fee into their startup costs and stay informed about any promotional opportunities that may offset it.
