Direct Checkout

[VintageUpcycled]

Does anyone have an opinion on Etsy's new direct checkout? It gives customers the ability to pay directly on Etsy with major credit cards.
For sellers? We still pay listing and transaction fees, PLUS 3% +$0.25 per transaction. This extra 3% is applied to the full transaction amount-including shipping and tax.
Funds will appear in a new shop section, and be disbursed weekly.
I am not inclined to start this--the costs seem a little steep. I am concerned that this will shift the way buyers decide to pay for items, and over time squeeze sellers' profits for the primary benefit of Etsy alone. I'd like to see the business model from Etsy that shows how this will positively impact sales for etsy shops.
Opinions?

[DianeTurpinDesigns]

The fees are comparable to PayPals fees unless you are in a high volume category.

The only thing that concerns me is that I do custom orders and have always required funds up front, especially if I am buying custom materials to complete the order. Direct checkout will not pay you until you ship the item so cash flow might be tricky.

I don't have it yet, but may give it a go. It might be appealing to those who are leery of PayPal, for whatever reason.

[Former_Member]

You don't pay until item is shipped?!

That's crazy!!
I wouldn't ship anything without money up front.

[ShopDeliciousThreads]

Sara,
The customer pays up front, but Etsy doesn't give you the money until after the order ships.

[Former_Member]

Still, how is that helpful?

[Former_Member]

Does anyone know what Paypal's transaction fee is?

[Former_Member]

I'm with Judith. I think it would only benefit Etsy. We cannot be all things to everybody! I'll stick with what works already and save the fees.

[Former_Member]

Do a search on this topic to see previous answers.

Etsy admin is now saying that you can make 2 listings for an item-- a downpayment listing that you can mark shipped right away, so you can get your money to buy materials etc, then a final payment listing when you're ready to actually ship the item.

This goes directly against what Etsy admin has previously said/allowed.

I am bothered by the fact that Etsy will not give a phone number or direct way to contact them for problems with your direct checkout account. They already do not answer emails quickly/at all-- Now they'll ignore me (maybe) AND have my money? Not good customer service.

The fees don't bother me as they are comparable to Paypal for me.

[Former_Member]

You are paying paypal .30 + 2.9% of every transaction. Including shipping and tax.

[Former_Member]

Paypal charges you the .30+ 2.9% and all that after the total money comes in. Will etsy charge you there fee's before or after the etsy regular fee's.

There needs to be some benefit to using etsy for both. Like a smaller percentage or free listings.

[Former_Member]

Can you print postage from it?

[BirdinHandVTG]

Great question, Jean.

[DingandKennie]

You cannot print postage from direct checkout. You have to import your addresses to paypal or wherever. The site is www.paypal.com/shipnow

[thimbledoodle]

I am using it and have had 3 or 4 sales from it. One on the very first day! The sales have been automatically deposited to my acct. on Monday.

I think it will increase sales, because I have had a lot of people say they don't have or don't want paypal,. And they didn't understand that you can still pay with paypal via a credit card without signing up.

For a $20 scarf, these direct etsy fees are about 10 cents cheaper than paypal.

I was worried, too, that I don't get paid until it ships. But when you order online from any company, they don't bill your card until the item has shipped, either. Plus, the customer has paid, it's not released to you until then. It might make a non-internet-savy-person more likely to purchase.

Once a week is fine for me to deposit funds. They say you could increase this if you want to. If I want to withdraw from paypal and deposit funds, it takes almost that long until it shows up in my account.

So, so far, i am quite happy with it. Easy to set up. Easy to use. I like it.

Lisa