Compare DC and Paypal Fees

[RazzleDazzleMe]

I just checked to see whether DC or paypal is cheaper. I compared a few of my sales and DC was cheaper every time. Has anybody else done the math for your shop?

[Former_Member]

I just started to use it myself, and have yet to have anyone use it, but I was curious about that as well. I actually thought it would be slightly more expensive (from my reading) but I could be wrong too.

[BuzzPlanet]

It's cheaper for lower-priced items because the transaction fee is .25 compared to .30 for paypal. The percentage is a tenth of a percent higher.

Etsy DC = .25 + 3%
Paypal = .30 + 2.9%

[OriginalsbyLauren]

interesting, I have not taken the time to figure it out.

[Former_Member]

Ah, thanks for the extra info Brandi, never was one for "math", but that means good news for me, since my shop is full of lower-priced items. :) Guess between those and the higher priced items things will work out nicely, if customers are more apt to shop based on offering direct checkout that is.

[familycollectibles4U]

Just after getting direct check out, I posted a message in my shop. I received an order that same day using direct check out, but not since.

[RazzleDazzleMe]

Almost all of my orders are direct checkout right now and my orders are all lower price, so I guess I will save a tiny bit of money. Brandi, thanks for those figures.

[collageOrama]

For me, Paypal is significantly cheaper. I'm not paying 2.9%, though.

[BuzzPlanet]

Well yes, there's a lower percentage rate that those that sell more than $3000 per month can get from paypal....but I'm guessing that's not applicable to the majority of etsy sellers; but who knows.

[RazzleDazzleMe]

CollageOrama, You are a major seller. Your work is great! You deserve a lower paypal rate.

[collageOrama]

lol. Thanks! You should tell that to Etsy.

[Former_Member]

Good to know.

[herie7]

i am liking DC for my international sales as the rate is lower than the PayPal conversions rate. I am a small owner so every bit counts.

[Former_Member]

Does anyone know if Etsy is planning to do pricing tiers? I also get discounted rates from PayPal due to volume which makes DC more expensive for me. I also don't like that I have to wait until I ship an item to get the money. I want to be able to accept Etsy gift cards but I have to enable DC to do so :(

[Former_Member]

@Brandi - Thanks for the percentage info!

[justByou]

I'm just now getting to all the tax info (I know a little late, but I'm still on time!), and so I'm doing comparisons and found this thread.

When you have a transaction through paypal, though, Etsy still takes the 3.5% sales fee from the item price. Not the transaction amt., but the sale price (not including shipping). So, this might make DC the preferable way to go.

The rates actually come out to be:

PayPal
0.30 + 2.9% PayPal transaction fee (including shipping price) + 3.5% Etsy transaction fee (not including shipping price)

Etsy
0.25 + 3.0% Etsy transaction fee (including shipping price)

Just wanted to put that out there. =0)

[DBoneCardGames]

Thanks for the info, good to know.

[janeeroberti]

DC is also faster shipping-wise, in many ways, and also since I no longer have to go to separate 3rd-party insurer site. Time saves money!

[tadalyndesign]

I just began DC a couple weeks ago. I did get one sale right away and it was very smooth, but I felt it was smooth before having DC too (through paypal). But... I had "forgotten" about paypal having its own take on my products, so now I'm not feeling so bad about the DC charges. This information is fabulous! Thank you all for sharing!

[Former_Member]

I really like the DC option and I have to say that my sales have been approximately 1/3 DC and 2/3 Paypal. The rates may be a little different but I like that our customers have more options available for payment.