Etsy Shipping + Direct Checkout Fees

[Former_Member]

I was looking over my Etsy bill statements for the past couple months, along with my shop payment account and the fees associated with that, and I realized some things. Etsy takes the direct checkout fees of 3% + 0.25 out of the total price. I just don't see the logic in charging a fee based on the total sale price + the shipping that is charged to the customer, when most sellers who use Direct Checkout turn around and "use" that shipping fee to purchase a shipping label through Etsy. We're being charged fees on that and then having to pay down limits to purchase postage. I am just a bit frustrated by this.

My shipping labels for last month cost over $100 through Etsy and the fact that I am getting charged a percent on top of that for the shipping fees I receive from my customers is kinda silly to me. Does that make sense? It just seems like my bill keeps creeping higher and higher and the shipping is kind of scaring me lol.

[PinchtheMuse]

Etsy takes the direct checkout fees of 3% + 0.25 out of the total price. I just don't see the logic in charging a fee based on the total sale price + the shipping that is charged to the customer
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Direct Checkout is a payment processor. It is common/standard for payment processors to charge fees on the whole amount they are processing. If you can find one that doesn't...let me know!!!

It is an adjustment using Etsy for labels. I just use them for international or express shipping and those come in waves for my shops. If I'm not thinking of where I've sent my orders and that I've used Etsy to print the labels...yes the bill "looks" big.

Additionally, with increased business for the holidays, the bills actually are bigger. But that is a good thing :o)




Just for others that may read this thread:

The help article explaining fees is here:
http://www.etsy.com/help/article/2144


Shipping labels team is here:
http://www.etsy.com/teams/13659/shipping-labels-improvements

[ohmama]

Keep in mind that if you are processing your credit card orders through paypal, they also charge this fee, on the total item plus the shipping. That is the amount that is being charged, so the processing fee is on the total. As themuse says, let us know if you find someone who doesn't charge for this, lol! Such a service would be working for nothing. That's just not the way it works in the business world.

The etsy listing fee of .20 for 4 months can't be beat! I gladly pay etsy the 3.5% when the item sells.

When we ship on-line and print our labels, we get a discount on the postage cost. Just imagine how much more it would be if you went to the post office, not to mention spending gas money, and standing in line, ugh!

If you were to rent a B&M shop, you would be paying a lot more in rent, insurance, shoplifters, and still have credit card processing fees, also you would need to be there all day long.

Right now I'm sitting here in my pajamas doing business. Wow, I love etsy!

[Former_Member]

As a new shop owner, I'm just getting started with all aspects of owning. I've looked at the shipping avenues here and they look great. And you are right, NOWHERE will you get free credit card processing fees. I just need to get a scale so I can do this myself! It will make things so much easier. Of course, I need get more sales first! ha ha!

[PinchtheMuse]

Hi Brenda...welcome to Etsy :o)

I sell mostly lightweight stuff---looks like you do too. I use a kitchen scale --can pick one up at almost any box store for maybe around $20?

Unless you are planning on selling stuff over 5 lbs....the digital kitchen scales work great.

[Former_Member]

Hello everyone,
I am a new shop owner also. I did not realize we get a discount on the shipping, if we print the labels through Etsy. Is that correct? I guess I must get some type of scale to weigh everything. So much to learn....

Thanks so much!

[PinchtheMuse]

Hi Lisa,
Yes you get a discount using online postage through Etsy or PayPal.

Looks like you have heavier items---you may want to check into other services aside from USPS. You might find Fedex or UPS to be cheaper for heavier items.

I only sell an occasional heavy item so I generally stick with USPS. But I would definitely check the other two out for pricing if I was regularly shipping things over 13 oz.

Oh...except for international orders...fedex and ups charge some pretty hefty extra fees to the buyer for processing international orders.

[OriginalsbyLauren]

I am loving DC and etsy shipping
It is convenient and I have never had a problem with either

[MadeByMari]

I've probably had 4 times the amount of sales since direct checkout started. I am not complaining. Plus, it's way easier to just do the shipping right from Etsy and have them charge you later. Otherwise I used to go over to Paypal and use their shipping function which is just about the same, but you had to sign in and fiddle around in another website. Why bother?

USPS online doesn't offer First Class labels, so either Etsy or Paypal, both of which take out of your accounts is great. And with your being on Etsy while processing Etsy, why not use Etsy and then pay later! It just makes sense. And it only looks like more because it's all on one bill.

I am somewhat old school in that I keep a log in a checkbook register and know what all my postage will be. There are no surprises.

Happy Holidays and Cheers to great sales with DC!

[PurpleSlugGlassArt]

For those who need a scale, I bought mine from the post office. I don't remember how much it cost, but it wasn't much.

[Former_Member]

OP - I am also bothered by the double dip of charges for shipping and a percentage of shipping in the DC fee.

Brenda - You can find some services that charge a flat rate vs a percentage on a sale - Dwolla charges .50 per transaction.

[Former_Member]

A question for those of you purchasing/printing your labels online: do you use self-adhesive labels or print on plain paper? I know, it's really insignificant... But I just purchased a postal scale and before purchasing and printing my first label/postage I'm wondering if I need to get the blank printable pages. I'm planning on purchasing postage through Etsy or USPS (my packages are small). Where can I get basic printable pages and are they all the same (size?)? I suppose I can also tape the printed postage to the package, right? My only angst with this is the fact I use green mailers and really don't want to pull out the packaging tape just for postage. What do I really need in order to purchase/print online? Also, can I only purchase postage via Etsy if the buyer paid via DC?
Thanks :-)

[Former_Member]

I think you can use etsy labels as long as it was sold on etsy, but not if you sold elsewhere.

I just tape mine on. It's a small label. I know a lot of people with bigger volume use sticky labels, but I usually only have 2-3 packages at once at most.

[LLFarm]

Sarah,

I too was using the print on paper then tape method. I switched and bought a Dymo 4xl printer, no ink needed and it uses a standard 4x6 label (Etsy now supports this printer, in that it work now).

The cost of the printer vs the time saved cut and tape method, the printer has paid for itself in just 2 months worth of use. It has also saved me the cost of ink. Yes I have to purchase labels now but in volume they are cost effective vs paper, ink and scotch tape.

Hope this helps, a search on line and you should be able to find a nice sale on one.


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OP-
I agree and have noticed this too. If I want to continue to sell here or any where on line its part of the cost of doing business and I add it into my overhead.