As you may know, we redesigned your shop finances so you can manage your finances in one place. We combined your Etsy bill and Payment account and will automatically deduct your fees from your Etsy Payment sales. This new experience will be available to all sellers soon!
Additionally, the team who worked on this redesign will be here next week to answer some of your questions.
Post your questions here in this thread and/or vote for the questions you’d like to see answered.
***Pro tip: Be sure to read through all of the questions before posting your own. It’s possible your question has already been asked. If so, give it a vote!***
You can vote for specific questions by clicking the small thumbs up in the top right corner of the individual post. While voting is open you can vote for up to three questions. If you vote a fourth time, your first vote will not count.
As always, questions that are hostile, off topic, or unproductive won’t get answered.
Questions and voting will close at 6pm EST on Tuesday, November 13. On Thursday, November 15 the team will hop in this thread to answer the top 25 voted questions from 1pm - 4pm EST.
Thank you to those who have posted questions in our Q+A so far! Our team is actively reviewing your questions and preparing answers to share on Thursday, November 15. We appreciate your patience until then.
Thanks for taking the time to ask your questions. We also appreciate all the feedback that’s been shared here!
If you’d like to continue sharing your thoughts, we welcome them here: www.surveygizmo.com/s3/4688122/feedback-00004-10000-s97xovh7fj
We are done taking questions here but voting remains open. If you haven’t already, please take the time to vote on questions already submitted. The team will be here Thursday, from 1pm to 4pm ET, to answer the top-voted and most important questions. Check back then!
Hi there! I’m Madison, Product Marketing Manager at Etsy. I work with the Payments teams to educate sellers on how to best manage their finances on Etsy. I’m excited to join this thread today to help answer some of your questions!
Hi everyone! I'm Rebekkah, and I work on Etsy's Product Support team. I help coordinate member support for the various tools and offerings launched on Etsy. Today I'm excited to connect with the community about the redesigned shop finances.
Hello! I'm Andreas and product manager in the Payments Team at Etsy. Our goal is to make seller finances simple and easy to manage, so that sellers can spend more time on their craft. I love having the chance to connect with Etsy sellers and look forward to this Q&A!
October VAT statement, before being transferred on 6th Nov, in PDF format subtotal ... £98.36 VAT............ £19.44 Total ..........£117.80 VAT 19.76%, should be 20%, but there are rounding differences on small amounts, so explainable.
NEW October Vat Statement, after switched to new finances in PDF format subtotal ... £86.45....so fees are way down VAT............ £22.05...and VAT is way up Total ..........£108.50 VAT now 25.5%, but look at all the figures!!!!
These are in PDF, because they can't legally be changed, but the first one has gone from the Etsy system completely....this has happened to other historic VAT statements, they have been replaced, how can we ever prove to HMRC that we were using your legally produced VAT statements, when you've removed them, and put different ones in their place????
THEN, if I go to my payment account, and look at the monthly statement for October, with the circles thingy
Fees and taxes £84.51 (this should be the same amount as "subtotal") VAT ...... £19.18 VAT now 22.7%
You just couldn't make it up.
does ANYONE at Etsy understand VAT, and how illegal this is????????????
not to mention, how on earth we can do accounting with all these different numbers showing for the same period
Which is the legal statement for HMRC, if any, and why are you giving us different figures
Hello! Thank you for your question. Retroactively changing your VAT invoices was not intentional. We’ve identified a bug with some of the invoices and are actively working to resolve the issue. We’ll update those affected as soon as we have more information.
Why, instead of having so many lines for each transaction, couldn't they be columns? Any more than a couple of orders at at time can take so long to match all the different order and transaction numbers, VAT...
Hello I would like to opt out of having my Etsy sales automatically pay my Etsy Bill. I use a credit card to pay my bill so I can earn points & other perks for my business. This cuts deeply into how I run my business. How do I opt out of this?
Thanks for the question, V. It is not possible to opt out of the new payment account. We understand that some sellers have credit cards with certain perks or rewards. If you have an amount due from the previous month, you can still make a payment with your credit card or PayPal between the 1st and 15th of the month to take advantage of your card’s rewards.
I have a question. Why doesn't Etsy include or at lease separate out the fee charged on the Sale? (It's the 3% + .25 at the point of purchase not the Transaction Fee. )
Posting Gross Sales is the information I really need. I also need to account for the fee charged on the Sale as a cost for doing business. It formerly was the fee listed in the payment account but not appearing in the monthly summary when I went to my bill and it's details. I always had to add this separately myself to get a real picture. I still need to do that in the new framework. I just think this could be much more transparent!
Thanks for your question! The redesigned payment account combines your fees in one place so that you have a centralized view of your sales and fees. The 3% + 0.25 fee that you’ve described is the Etsy Payments processing fee, which varies by country and is immediately deducted from the sale amount by nature of payments processing fees. We understand that you would like to see this fee separated out, and we will take this into consideration for future improvements.
The 5% transaction fee is being incorrectly calculated for non-USD shops resulting in affected sellers being consistently overcharged for each transaction.
I've been informed by customer support via live chat that this is a BUG. This bug has been affecting sellers since the roll out yet there's been no site wide announcement or information provided. Instead we've been trying to figure this out on our own with many reports and requests for help going unanswered.
I'm lucky to have gotten a response thanks to being a tester for live chat. Others who've written in have had no response for days. Sadly l'm not confident that the information I was given by support is correct. Have you actually rolled out a system that you know is overcharging some sellers without saying a word? I find it suspicious that the amount overcharged seems to consistently be 2.5% which is the amount Etsy charges for currency conversion on the site. Except sellers aren't supposed to be charged conversion fees on their bill. We need an answer about this please.
Hi there. We can confirm that this is working as intended, and we’ve clarified this with our customer support team. The 5% transaction fee charged by Etsy will be assessed on your listing’s price and shipping cost after it has been converted to United States dollars (USD). All fees from Etsy are then converted to your Payment account currency. We’re looking into improving this and will update you as we have more information.
Why are non-US sellers charged 5,2% instead of 5% on transaction? Why are we charged 4-4,% plus 0.25 instead of 3% plus 0.25 on sales? Why were closed monthly statements altered? Isn't it illegal? Why is every single sale split into at least 4 lines? Why are people charged VAT on free listings? Why remains Etsy silent even though some of these subjects were brought up for 3 weeks ago?
1. Looks like we’ve already answered this one. Check out the answer above!
2. The fee you’re referring to is the Etsy Payments processing fee, which varies by country.
Are we going to get an easy to reconcile account report? Something to balance our deposits to? Currently, I receive deposits weekly but can only pull reports monthly and some deposits cross months. And my CSV from orders does not balance to the deposit now that fees are deducted - but monthly statement does not break out sales tax and shipping.
Right now - it is really a mess to figure out sales in + shipping + sales tax - discounts - fees - other fees and then mix in refunds and canceled sales.!
PLEASE PLEASE PLEASE get us some usable reports! Thank you
Hi, thanks for your question. We appreciate your feedback as we continue to improve the redesigned payment account and reports. Any future updates or improvements to the experience will be communicated to sellers going forward.
1) Why does it appear there are overcharges on transaction fees for international sellers? They do not seem to be the 5% as stipulated.
2) Re Summary of Services pdf files - why are the figures distorted? My October pdf doesn't add up correctly, and the VAT has been mis-calculated.
3) Why are refunds bundled in with outstanding fee payments, instead of being broken down as two separate entries/transactions? Any auditor looking at this line entry will see a customer paid x amount, but was refunded XX amount and will surely question it. How is this to be explained for our accounts? How can we account for our fees if it has refunds added in?
4) Why are payments taking so long to clear? I have deactivated my listings because I don't want customers to wait an indeterminate time to get the item they ordered, and then cancel their order. And then have to do a refund (see above).
5) Re breakdown of fees/payments - why is there no gross sale, then a single line of fees deducted (itemised)? For accounting purposes, we need the gross value first, then the fees/charges deducted, and ideally in a format that allows for easily calculated monthly reports. The CSVs at present are totally inadequate in this respect.
6) Why has the Payment button been deactivated?
Please check out our answer above about how transaction fee totals are converted.
As for your question about your VAT invoice totals, retroactively changing your VAT invoices was not intentional. We’ve identified a bug with some of the invoices and are actively working to resolve the issue. We’ll update those affected as soon as we have more information.
When you make a full or partial refund, you will see the fees associated with the sale credited back on your Payment account. The payment processing fee credit is shown on the refund line item and any additional fee credit will be separate line items.
The order processing delays over the last few days were unrelated to the redesigned shop finances. Were sorry for the inconvenience this may have caused. Going forward, orders should process within the typical time frame.
To keep your account in good standing, you only need to pay for fees from last month that were not covered by your sales. Throughout the month, your current balance will fluctuate, but you are not required to pay for fees that aren’t covered by your sales until next month. If you do not have an Amount due, then you will not see the option to pay.
Not a question, but a request. Can we get a screen that gives a total for each day?
Promoted Listing Fees
etc, etc, etc
That way we can see each day here is where our money went and adjust our expenses to meet our financial goals.
Edited to add: something similar to the stat or analytics data, where we can plug in a set date or select a range of dates.
Thanks for your recommendation! You can filter your sales and fees information on your Payment account in the Monthly Statements section. The current filter options are This month, Last 3 months, Last 6 month, Last 12 months, All this year and All last year. We chose these filter options based on research and feedback from many of our sellers. We appreciate your recommendation and will take it into consideration for future improvements.
My account was -35.67 and the amount due was 7.73. So, I paid this. What is the reasoning behind these numbers? Why is only 7.73 due? Does not make any sense?
Taking money from the top will take from money that may be used to put together a custom order.
There is no way to separate shop maintenance (new listings, renewals, etc.) from the sales. The old system allowed me to do this and keep track by paying a separate bill.
No way to pay off the balance or a option to do so. I wanted to pay the entire bill and start at 0 and I cannot.
The system just appeared out of nowhere. (Yes, I know that we had some warning.) If there was some sort of notification a day before, it would have been nice.
Rolling this out right before major holidays.
If you can't pay off the balance and start fresh, it may feel like you are just continually paying fees. Especially if you are small or newer.
No way to allocate money.
Immediately taking money may deter from purchasing other services or building up the shop.
I can understand immediately taking the fees for the transaction, shipping fee, and Etsy fee. However, immediately taking from all the sales to pay every other fee does not seem helpful. I would request a way to only take the fees generated from the sale, not take from the entire sale to pay ever other fee.
Hi! Thanks for your questions. To keep your account in good standing, you only need to pay for fees from last month that were not covered by your sales. Throughout the month, your current balance will fluctuate, but you are not required to pay for fees that aren’t covered by your sales until next month.
In your specific example, 7.73 was the amount of fees (or your current balance) at the end of last month, which is due this month. -35.67 is your current balance which reflects the activity you have now. If nothing else changes throughout the month, you can expect to see 35.67 as your Amount due next month. That will be the maximum amount you will be required to pay to keep your account in good standing for the month.
Note that your Monthly Statement breaks down your fees so that you can see what you are spending on Listings, Listing renewals, etc. You can also download a CSV report to see these fees.
We believe this simplified view of your finances will help keep sellers informed on the profitability of their shops. Our goal is not to deter sellers from purchasing other services or growing, but to be more transparent about your shop finances and help you make decisions that result in better growth for your business.
How does this effect accounting software? Right now I use GoDaddy Bookkeeping...should I expect a change on that end? Will I manually have to enter anything?
Thanks for your question! We do not actively oversee an integration with GoDaddy bookkeeping services so are unable to comment on how this may affect your current management of finances. We recommend you reach out to a representative from GoDaddy for more information.
What is up with the giant graphs? I need a summary of my total monthly fees, separated by type of fee, in a printable format. I can see the totals for each kind of fee but they are hidden behind tabs and are not printable. The pretty graph is useless to me.
In the Monthly Statements section of your payment account, you can filter your sales and fees information to see how much you’ve made or spent on Etsy. The current filter options are This month, Last 3 months, Last 6 month, Last 12 months, All this year and All last year. If you click on a specific month’s statement, you’ll be able to download a CSV of your sales and fees data for that month. We appreciate your feedback will take it into consideration for future improvements!
Will Etsy consider reinstating the "Make a Payment" function so we can bring down our amount owing at any time?
I would prefer to make payments to Etsy, from time to time, using my PayPal account when my sales do not cover the fees owing
By combining your payment account and bill, we’ll deduct fees directly from your sales automatically. However, if there are fees you owe to Etsy, you can pay them when they’re due at the beginning of the month or through Autobilling if you’re in the United States. Since the fees are only due at the beginning of the month, you won’t have to pay Etsy throughout the month.
I am totally confused! My payment account says I have a negative balance! What? But it also says I owe nothing for fees but I also have no money available for deposit. Makes no sense whatsoever! I have always paid my Etsy bill on time and prefer to pay it myself and to pay it monthly to keep my bookkeeping simplified. Not simple anymore. So bummed!! Waiting to hear Etsy's response!
We appreciate your feedback. By combining your payment account and bill, we’ll deduct fees directly from your sales automatically. You can continue paying your bill monthly for any fees outstanding. Your running balance may be negative due to fees from this month but they won’t be due until the beginning of the next month. This should explain why you don’t currently owe us anything.
Why are the shipping and transaction listed as separate deductions then they are added together and show as another deduction. Looks confusing.
Thanks for your question. Our goal is to provide as much transparency as possible so you can run your business effectively. This is why we’ve separated transaction fees and shipping fees. They may be grouped in the graph section under fee types but you are able to further expand every fee category in the graph section to dig a little deeper.
How can I track sales tax, I was able to see a separate column in CSV file but now Fees and tax is under one. Do I have to go through all of the original receipts and do manual counting? That is not easy at all. Am i missing something?
Great question! If you head to Shop Manager > Settings > Options > Download Data, you’ll be able to scroll down to the ‘Orders’ section and download your order history as a CSV. Once you’ve downloaded your CSV for a specific month and year, scroll to the right to see a column labeled ‘Sales Tax’.
I closed my shop but they won't allow me to close my account. I owe no money. Why am I not allowed to completely close my account Etsy?
We’re sorry you wish to close your account! We’re aware that some sellers are unable to close their accounts right now, and we’re working on resolving this. In the meantime, if you’d like to close your account, please reach out to Etsy Support for further assistance.
Can Etsy provide more information on how the new system works for non-USD sellers? E.g. confirming at what point listing fees are recognised in my currency instead of at $0.20.
Also, why was my USD statement balance at 30th Sep transferred to the new billing system and converted into my currency - when I received a bill in USD and I paid in USD? It's caused a discrepancy on my payment account so I don't know if it's correct or a teething error.
When a listing fee is incurred, Etsy converts the USD $0.20 into your local currency before showing it on the Payment account.
In order to calculate your balance on the redesigned Payment account, we needed to convert your fees from USD into your local currency. This was a one-time transfer to kickoff the current balance. If you feel that your balance was incorrectly calculated, please reach out to Etsy support to resolve this specific issue.
I would like to know why this major, untested, messed up change was done during the last quarter and right before the busiest shopping time of the year? Wouldn't it have been so much better for us sellers if you had waited to launch this in January 2019?
Thanks for this question. We understand it is a busy time of year with the holiday shopping season. Earlier this year, we announced plans to make managing your shop’s finances easier by combining your payment account and bill, and changing how you’re billed on Etsy. Our original plan was to make the new experience available to all shops by July 1, but based on feedback from the seller community, we needed more time to continue to improve the experience. Our hope is that this simplified view of shop finances will help keep sellers informed on the profitability of their shops. Seeing how much you’re spending and on what can help you make decisions that are best for the growth of your business.
"Why was the rollout of the new payment system continued despite large numbers of people finding issues with it?"
The latest rollout seems to have been the worst yet, with many non-US sellers reporting discrepancies in the amounts they have been charged in fees, on top of already known issues.
And yet there has been no sign that Etsy has taken any notice of any of these issues.
Surely the whole purpose of a staggered roll-out is to determine if there are any flaws or bugs in the system before it impacts too many sellers site-wide? That way changes can be made before going ahead with the new system and potential problems ironed out.
Yet this has not been the case with this payment system and now I would guess, thousands of sellers may be struggling to understand why they are seeing discrepancies in their bills and in many cases charged over the stated 5% in fees, not to mention the many reports that historical VAT amounts have been altered retrospectively, which, if true is a deeply worrying, not to mention highly illegal, act in itself.
I fail to understand the thinking behind the complete silence evinced by Etsy so far on this and all of the other reported issues. It is causing a lot of distress for many people who need to know that their finances are in safe hands and it is causing many sellers here, myself included, to lose trust in Etsy.
There is no transparency here. Your tag line "keep commerce human" rings even more hollow today than at any time since Etsy was taken over by corporate money men and run for profitability over and above the idea of ethical, responsible handmade & vintage.
The vast majority of sellers here have historically been small businesses, usually comprising of one person, running their shop out of their garage. I believe this was the description you used yourself on the recent interview I watched on CNBC with Jim Cramer. These are not accountants, nor are they (generally) people who can afford to hire accountants.
Sellers on this site need to be able to trust that you are able to handle the money we make from our sales and the fees we owe you in a responsible and legal fashion. And we most certainly require you to respond quickly and effectively to fix problems as they arise.
To date, I have seen no evidence of this regarding the new payment account and that lack of faith is going to be very hard to restore.
Thanks for taking the time to share this in-depth response. While Josh is unable to attend our Q+A today, I’d be glad to address your concerns here.
This update was considered based on feedback from talking to many sellers to get a direction on what would help them best manage their finances on Etsy. We also invited a large group of sellers to join a prototype group to collect more feedback on the changes once they were ready. During roll out, we’ve identified some bugs and are actively working to improve the changes. Rolling out the changes doesn’t mean we’ll stop improving the experience. We really do appreciate the feedback from our seller community and are focused on further improving how sellers manage their finances.
YOU TOOK AWAY OUR ABILITY TO SEE PAYMENT HISTORY!!
//////// Why can’t I see past bill payments made with my Payment account? Past bill payments made using your Payment account balance are not shown in the new experience and this is intended. The redesigned Payment account directly nets out all your fees and service costs from your Etsy Payment sales. In the past, when you made a bill payment using your Payment account funds, you effectively used those funds to pay your bill fees. The new Payment account automates this process. ////////
YOU TOOK AWAY OUR ABILITY TO SEE PAYMENT HISTORY!!
THIS IS NOT OKAY.
Thanks for your feedback. We intentionally do not show past bill payments made with your Payment account balance in the new experience as this would result in displaying an incorrect balance. This was our effort to simplify the transition to the new payment account. If you need a record of your bill payment history, you can request it from Etsy support.
How Etsy going to deposit money to my bank account? im located in Thailand and Etsy payment is not available in my country ( meaning i can not add my bank account into etsy system) I currently received money and paid Bill via PAYPAL. I don't understand this new system and how Etsy going to pay me. Etsy please clarify how i gonna get paid??
Hi there! If you’re based in a country that’s not eligible for Etsy Payments, you're still welcome to use your own PayPal account to accept payments. Funds from PayPal sales will be deposited into your PayPal account. However, you’ll no longer see ‘Your bill’ in your Finances navigation and will instead see ‘Payment account’. In this experience, you’ll only see fees and taxes deducted/owed to Etsy. Your PayPal sales will not be visible in your Payment account.
Etsy please clarify how this will affect sellers who only accept Paypal payments.
We want to be able to pay our bill through Paypal balance. We don't want anything to change. Will you only send partial payments (deducted fee payments) to our paypal account when the transaction goes through? What if a buyer opens a Paypal case?
Great question! With the redesigned Payment account, you’ll no longer see ‘Your bill’ in your Finances navigation and will instead see ‘Payment account’. For shops only accepting PayPal, you’ll only see fees and taxes owed to Etsy. Your PayPal sales will not be visible in your Payment account, for this reason fees will not be deducted from your sales before reaching your PayPal account. If you have an amount due, you can still make a payment with your credit card or PayPal at any time.
Why am I being charged shipping on transactions when I don't purchase my shipping through etsy? Ummm, I believe that is theft? I go to Canadapost to purchase my postage so why am I being charged?
Hi there- back in June, we pre-announced a change to how we’d calculate transaction fees on Etsy— changing to 5% of the item total and shipping costs effective July 1. This was a decision that we considered very carefully, and was based on feedback from thousands of buyers and sellers, as well as a look at overall trends in ecommerce. One thing we've learned is that while buyers value handmade, crafted, and vintage products sold on Etsy, they see no reason why they should pay more for shipping on Etsy than anywhere else.
This is where applying the transaction fee to shipping comes in—this is a standard practice in ecommerce marketplaces because it creates a level playing field, and removes the incentive to have shipping prices that don't meet buyer expectations. Etsy’s CEO Josh SIlverman and GM of Seller Services Kruti Patel Goyal discussed this in depth on a podcast back in July You can hear their discussion here: https://soundcloud.com/etsy-699847215/q-a-with-etsy-ceo-josh#t=10:16
I don’t know what I’m going to do now. I need the money from my sales and haven’t had any for days. It’s amounted to about £100. I owe for next month too when I usually pay with my PayPal so I’m never going to get any money from my sales. I run a promotion every day. I don’t get sales every day from it. This isn’t going to work for me and I’m really worried.
Rachel, there is no longer a bill. Your fees are now deducted from your sales and you get what's left. (My suggestion ... if you're using PL's or any other optional things, turn them off. Also buy your postage elsewhere ... www.PayPal.com/shipnow works well or PirateShip, which seems especially good for larger/heavier things).
I'm paying out of pocket for orders. NOT ok! Every sale is adding to a negative balance. Then, on top of that, when I finally do get a deposit to my bank, my current balance goes even further negative by that amount that was deposited! How does this make sense? So, I'm paying up a negative balance on MY money from my orders that was deposited into my bank? Nope! Not gonna play this game!
They are taking all our money and the bill is NOT even past due! My bill for November is PAID in full! I want to pay you once a month!
I really don't think this should be legal. This is plain wrong and causing MAJOR PROBLEMS. I don't think they realize that. They will be the ones losing in the end...because many sellers will leave and Etsy won't survive without sellers.
the more a seller is left confused, the better it is for Etsy. Easier for extra charges and mistakes to slip by.lol
Only logical reason I can think of for new fees is to deter someone selling an item at $1 with $50 shipping cost so they'd only pay a fee for the listing price. Now they earn more from fee regardless if your item costs $100 and free shipping, or $0 for the item and $100 shipping
that is just etsy's way of making more money...they are starting to follow in ebay's footsteps...they're making it sound like this new payment account program is for us when it's really all about the "daily" interest they will be making off our money instead of getting getting it monthly...has anyone been watching their stock ticker ETSY...their stock price is going off the charts
Replying to this, just to keep an eye for an answer. A bit confused here too. Maybe someone can explain: Sale of 2 items $43.90 (2X$19.70 for items + $4.50 shipping) Auto renew sold -$0.20 (understandable) Multi quantity -$0.20 (understandable) Payment for order: $43.90 -$2.06 = $41.84 (kind of understandable, except that can't figure out how the fee is calculated. $2.06 is not 5% of sale)
Next: simply "Transaction" -$2,04 Next: "Shipping transaction": -$0,23 So, my calculated total: Balance before transaction: -$313.26 Transaction: +$43.90 Balance after transaction: -$274.05 So form a sale of $43.90 i made $39.21. Total deduction: -$4.69 As i understand it should be -5% from a sale+shipping, and -$0.40 multi-quantity. 5% from 43.90 = $2,195+$0.40 = $2.595 Am I wrong?