Etsy Inc (NASDAQ:ETSY) stock was surging Thursday on news about changes coming to the platform.
Etsy Inc says that it will be introducing new subscription plans for sellers on its platform. These new plans will be Etsy Plus and Etsy Premium. The goal here is to give sellers more tools to work with and grow their business. Etsy Standard will be the free option and it includes all the current tools available to sellers.
Etsy Plus is the first of the plans being introduced in mid-July for $10 per month. The following are the features it will include.
- Access to everything in Etsy Standard.
- Advanced shop customization options.
- Targeted restock notifications.
- Discounts on branded packaging and promotional materials.
- Free or discounted custom web addresses.
- $5 monthly Promoted Listing credit and 15 free monthly listing credits.
Etsy Premium is set to come out some time next year, but a price hasn’t been announced yet. The following are details about it.
- Access to everything in Etsy Standard and Etsy Plus.
- Advanced management tools specifically designed for business owners with employees.
- Premium customer support.
- More details to be announced in the coming months.
Another big change coming to Etsy Inc is an increase to its transaction fee. The coming will be increase this fee from 3.5% to 5% starting July 16, 2018. It will also now include the cost of shipping in these fees.
As a result of its increasing transaction fee, Etsy Inc is updating its 2018 guidance. The big note here is that the company now expects revenue growth between 32% and 34%. It was previously looking for revenue growth to range from 22% to 24%.
ETSY stock was up 33% as of noon Thursday.
As of this writing, William White did not hold a position in any of the aforementioned securities.