Etsy Inc (NASDAQ:ETSY) has announced that it will be increasing seller fees next month.
Etsy raising fees for sellers will start on July 16, 2018. This will have the company taking out 5% from what sellers make. The previous transaction fee from the platform was 3.5%. This change will also have the company now including the fee in shipping costs as well.
Etsy raising fees for sellers may come as a shock for some, but the company promises it will benefit all. This includes the ability to “attract buyers, enhance customer support, and drive product innovation.”
Here’s a direct statement about Etsy raging fees for sellers, from CFO Rachel Glaser.
“Our revised fee structure will allow us to make more meaningful investments on behalf of our sellers while remaining what we believe is the best value for entrepreneurs looking to start, manage, and grow a creative business. We plan to increase our 2017 direct marketing spend by at least 40% in 2018, revamp our Etsy community platforms, and execute against an exciting product roadmap. We believe all of this will help drive near-term growth and increase buyer lifetime value.”
Here are some reactions to Etsy raising fees for sellers from Twitter Inc (NYSE:TWTR) users.
- “Etsy is raising their fees on sellers and gouging us. Doing everything I can to keep my prices low for all of you.”
- “With Etsy raising their fees, I want to try one more time to sell this Anubis mask on Twitter before listing it there.”
- “Due to Etsy increasing its fees in offering these Amythest Armidilio pins on here.”
- “After today’s announcement that Etsy is raising it’s fees on sellers (including a new 5% fee on *shipping prices* ? ) it seems like a good time to issue a little PSA. If you like a maker and they have a stand alone store, support them there instead buying from them on Etsy.”
As of this writing, William White did not hold a position in any of the aforementioned securities.
