Quick question

[SlapDaBassMon]

Quick qestion now that they have taken away our option to charge a nominal fee to cover the expenses such as the 6.5% fee etsy takes from our calculated shipping fee and the very nominal cost of supplies (labels, envelope, etc) why are they charging 6.5% for those of us that use calculated shipping. I remember the old days when sites did not take a percentage of shipping so folks sold stuff really cheap and jacked up the shipping however thats not the case with calculated so why is etsy taking 6.5% of my shipping. I do not use their labels or anything to do with getting labels from them etc. I use my own software to print my labels. 

My most recent sale the calculates shipping was $4.08 and and I actually paid $4.08 for my label from usps. Now etsy took .27 (.2652 but I guess they rounded up) so why did I just pay 27 cents and loose money on my sale? What does my 27 cents get me other than now I will have to raise my prices to cover the cost of not being able to charge a nominal fee to cover that loss.

I'm sure after a few minutes etsy will remove this. They say they are moving to the "shipping catagory" I have yet to find that so I can review what others think

[NanaLetha]

https://help.etsy.com/hc/en-us/articles/360035902374-Etsy-Fee-Basics?segment=selling

[SlapDaBassMon]

I guess I am missing what you are trying to show me here with the link to their fee basics because I don't see anything that explains what they are doing with my 6.5% of my calculated shipping fee. Like I said i dont use their labels, or anything about their shipping or gift wrapping etc this was pointless to post this link 

[ArtDollsbyJD]

@SlapDaBassMon   6.5% pays for the maintenance and development of the ability to have shipping on Etsy.  It does not matter shipper used or whether or not use fixed or CS.  

Consider it part of overhead.  You decide how to work out the 6.5% which is on the item and shipping.   I figure out overhead costs and then figure that into my item costs. 

[PlatypusDream]

You're supposed to roll that cost into the item price.

It's the only way.

[SlapDaBassMon]

I think they published something about this earlier when they were going to remove the ability for a shipping service fee and it would somehow make things more attractive to buyers. Not sure how raising my prices will to that.

[PWOriginals]

Earlier forum discussions about this change resulted in a consensus that removing our ability to add packaging/handling costs was actually to benefit Etsy with their new Etsy Insider program (still in beta), an incentive program for buyers where they pay a fee and enjoy "free shipping," paid by Etsy (the sellers still get the shipping fee they've set, Etsy reimburses the seller). Etsy didn't like having to also pay those add-on fees, so now they've eliminated our ability to use that feature.

The only choices we have are (1) to add those fees into our item price, or (2) use retail shipping pricing on our listings but Etsy's commercial rates when we purchase our labels.

[SlapDaBassMon]

finally an answer that makes sense I would have almost bet my paycheck this had to do with etsy not wanting to have to pay anything extra for that free shipping program. 

That still does not explain though why they charge me 6.5% of my calculated shipping fee. I am not jacking up the weight (I'm sure they could tell if I did that on a guitar pick that letss than an ounce) I could live with the few cents I spend on envelopes and labels and just eat that cost but when what my calculated shippig fee charges the customer and what usps charges me are identical well then that pisses me off and I don't want to loose 27 cents per order when I am charging really close to the hip prices to start with.  They said this change would make pricing more attractive to my customers but it only makes it more attractive to them for this beta pay now for free shipping. 

[SlapDaBassMon]

Another solution I just looked at is to continue to use calculated shipping but I can up the weight from 1 ounce to 5 ounces. This is when the scale tips with usps and they go to the next higher rate. Once my order is imported I can change the weight back to 1 ounce and pay the lower rate.  I really hate doing this because etsy (not me) wants to make more money and bleed my customers dry that are not going to sign up for their free shipping. The only time i saw one order come through on my shop that showed shipping paid by etsy was last christmas. This isn't amazon people aren't coming here to shop daily. 

[MoonstruckCottage]

Etsy has been taking 6.5% of the shipping fee for a long time now. It doesn't matter if you use calculated shipping or where you buy your shipping labels. Sellers pay 6.5% no matter what.

[SlapDaBassMon]

@MoonstruckCottage  Yes I know and I have been wondering since forever why especially with calculated shipping what is the 6.5% for?

[MoonstruckCottage]

@SlapDaBassMon Because all your items are very small, you may be better off using Fixed Price shipping. It's less complicated, and you can include a little extra to cover whatever you want it to cover. Per Etsy's "suggestion" though, keep your Fixed Price shipping fees under $6.00.

[IndustrialBlonde]

Yup. Make it $5.99. 

[MoonstruckCottage]

Notice I didn't say crazy suggestion. Though I guess I'm saying it now lol. But the under $6.00 thing will definitely work for his small items.

[SlapDaBassMon]

@MoonstruckCottage  No can not do it you are right my items are very small and with calculated shipping the further away the customer is the more usps charges so somoene one state away pays $3.55 and from here to CA it's dang near $5.00 now that is straight up what my postage would cost me. Calculated was perfect. I would have to figure out what it would cost from here to hawaii or alaska and charge everyone the same. I'm trying to get customers not push them away with high prices and high shipping costs so the 10 people that are paying $50 a year can get free shipping. 

[SmudgePlant]

I think the 6.5% shipping fee should be dropped now for anyone who uses calculated shipping, shows commercial rates, and buys Etsy labels.  There's no reason for Etsy to take a cut of this process, we are not making any money on this transaction. Etsy, on the other hand I'm sure, is making money when we purchase Etsy labels.

[SlapDaBassMon]

@SmudgePlant I would agree and disagree. Why just cut it if I use their labels? I'm not making any money off my shipping fee. a 6.5% fee on shipping for calculated shipping is just wrong. Nothing ends up in my pocket the $3 their system calculates the shipping to cost goes straight to usps well now I have to cover the extra 27 cents out of my pocket because they won't let me make that 6.5% up with the handling fee. 

[SmudgePlant]

@SlapDaBassMon 

I will agree to agree.

[Marmalady]

Etsy's commission is 6.5% on the total transaction -- item cost, shipping cost etc etc

Etsy just separate their commission fee into 2 separate lines

When pricing your items you should take account of all costs and fees -- item, packaging, shipping etc.
If you can't bundle packaging into your shipping charge, bundle it into your item price -- just like (I presume) you bundle the item transaction fee into your item price

[MailboxVintage]

Etsy started charging the 6.5% to the shipping cost some time back just to account for the "cheating" you mention.  Doesn't matter if you use their labels or not.  They recently just removed the option for adding a handling fee which is how I used to cover the additional cost.  Now I have to add a few ounces to the estimated weight to cover this expense.  I also no longer offer expedited shipping since there is no way to anticipate who might want to overnight something for a really high cost in which case the 6.5% could be significant and would put me in the hole.