Offsite ad fees percentages are wrong

[#1]

My offsite ad fees are working out to more than 12%. For instance Sale $27.60 (this includes shipping) Offsite ad fee $3.40. It should be $3.31. 

I'm wondering how Etsy is reimbursing Canadians for the difference?

now I see a credit under the offsite ad fees on my statement, is that for the difference?

[BagmakerSupply]

@ShakybirdCustomWorks: Totally agree with you that the offsite ad program needs improvement particularly the ability for a seller to at least exclude some of their listings.

"... about 34% of sales attributed to offsite ads ..." I understand your point, but your argument does not address the theoretical central tenet behind the offsite ad program: without the offsite ads you would not even have had those sales and you would be worse off financially.

[BootifulLabels]

@ShakybirdCustomWorks 

unless the seller is making a NET profit on shipping, it’s a zero-sum part of the equation

Etsy doesn't charge fees on your profits from sales, they charge fees on your earnings from sales.  There are plenty of shops out there who price their items far too low and then wonder why their fees take so much of their earnings.  Years ago sites would only charge fees on the item price, and the end result of that was fee evasion on a massive scale.  Many sellers would charge 99c for the item and put the rest of the price in as shipping, so that they only paid a few cents in fees on every sale regardless of the true price of the item.  As with most rulebreakers, they ruined it for all of us.  Now most sites, including Etsy, charge their fees on the total income from the sale, whether you think it should work that way or not.  As far as taxes go, shipping has two components.  The money you receive from the buyer for shipping, and the money you pay the shipper for shipping.  They are not always the same, there is potential for profit on shipping, so the tax man expects you to declare the income you receive from buyers for shipping as well as the cost you pay for actually shipping.  If the former is a larger number than the latter, that constitutes a profit and you pay tax on that.

[ShakybirdCustomWorks]

@BootifulLabels 

Again, let's not compare apples to kiwis:  The tax ramifications of shipping charges / costs have NOTHING to do with the calculation of fee cost as a percentage of item price.  I do not understand why this is such a problem to grasp.  While I am fully aware of why platforms and processors charges are based on the total of the sale, the reason for such is also irrelevant.  BUT that doesn't change the fact that such means of calculation drive the actual fee cost to excessive levels. PLEASE read my post again... SLOWLY if need be.

[ShakybirdCustomWorks]

@ArtDollsbyJD

LOL  Have you read my post?  I'm not upset over the discussion other than the completely false narrative offered as a solution to the high cost of the ad fees.  I am fully aware of why selling platforms and processors charges are based on the full amount of the sale.  Do you understand that the additional 12% fee charged for offsite ads jacks the fee cost to 24% of the item price for one of you $75 items?  Items with a higher shipping charge are hit even harder.

[BagmakerSupply]

"Do you understand that the additional 12% fee charged for offsite ads jacks the fee cost to 24% of the item price for one of you $75 items?" Only if 100% of their sales come from offsite ads. In our case, offsite ads only added 1/2 of 1% to our 2024 fees.

[PrairiePrimitives]

@waterleliejewellery  If $27.60 is the total price including shipping, 12% would be $3.31. If you charge shipping, I'm pretty sure the 12% is charged on the total purchase price. 

Your "shop location" (the location shown at the top of your shop) should be where you sleep. Pembina is near the Canadian border, but I don't believe that Canada has yet annexed North Dakota ... so if you're saying you live in North Dakota, then you don't live in Canada. 

If you're using Pembina, North Dakota for your location because you drive your things across the border to mail with USPS, you might want to talk to other Canadian sellers to see how they do this ... because I doubt they're fibbing about where they live (at least not most of them). 

[ShakybirdCustomWorks]

@BagmakerSupply

"Worse off financially"?  With the offsite ad fees, I barely broke even on the items old.  Without those sales, my product would still be available for sale without the profit killing fees.

[CraftyCornishMaids]

if your SEO was optimised for etsy

then you would get a lot more sales from etsy organic search,

you might want to ask for a shop critique

[BagmakerSupply]

@ShakybirdCustomWorks: Was not expressing a personal opinion - you did see that I clearly stated "theoretical central tenet behind the offsite ad program" as we imagine Etsy sees it?

The bottom line that this program's efficacy, effect, and costs vary widely on a shop by shop basis. 

[bradgoodell]

Off-site ads have been around for a few years now, they aren't new.  

Since off-site ads were introduced, many sellers have done the math and published their results.  Most find off-site ads to be a very small percentage of their overall sales.  Some shops never get a sale from off-site ads.  Some get 50% or more from off-site ads.  Regardless of your percentage, the math is simple.  

Take 2024 off-site add fees.  Divide it by all your 2024 sales.  Add that averaged amount to your prices.  

Opinions of off-site ads is irrelevant.  I personally don't want to pay for them, but I'm a realist.  Etsy is not going to stop running off-site ads, and one way or the other, sellers pay for them.  So the choices is simple.  Do nothing and complain when you lose money.  Adjust your prices to accommodate the cost.  Choose not to sell on Etsy.

Do whatever works best for your business, but they aren't going away.  

[CraftyCornishMaids]

@bradgoodell 

the other thing to think about, is there are costs to everyone for the programme too, even if you are not in offsite ads

because etsy only recovers a proportion of the offsite ad costs, in offsite ad fees.

the rest of the costs, comes from our standard transaction fees, that everyone pays, whether they are in the offsite ads or not

so if you are not in them, you are paying, for others offsite ad sales

.....

I personally will remain out, and ensure I keep under the threshold to do so, as I don't want or need the extra sales, Amazon picks up more than enough - 3-4 times the sales here - to not make it worthwhile for me.

.... but just make sure , as a seller, you factor in all the costs of the ads, including the fact, we are all, already paying for them, whether we opt in/forced in, or not

is the extra, worth benefitting from them too??????

for me, no, but for many, the extra calculation might make it worthwhile

[Eveningstardust]

You’re luck, I’ve just been charged 26.35% and still have to pay postage, total of 44.63% off my total order, it’s soul destroying