Etsy have announced that Etsy fees will increase from 5% to 6.5% as of the 11th of April 2022. The company plans to invest most of the incremental revenue from this fee increase in marketing, seller tools, and creating world-class customer experiences.
Etsy grew massively throughout the pandemic, first with growth driven by sellers making face masks, then by the pandemic forcing millions around the world to work from home with many normal activities shut down and pure boredom making online shopping attractive. With the pandemic slowly tailing off, Etsy now need to maintain these buyers and their increased revenues (16.2% Year-Over Year Revenue Growth in Q4 alone). This will need investment and that’s perhaps why it’s no great surprise to see fees going up.
We plan to make significant investments in marketing, seller tools, and creating a world-class customer experience so we can continue this tremendous growth. To support this goal, on 11th April we will increase our current 5% transaction fee to 6.5%.– Etsy
Etsy say that increased Etsy fees will allow them to make improvements in three key areas:
- Bring more buyers to Etsy: Last year, Etsy spent nearly 600 million USD on marketing. This year they intend to invest even more, including the TV commercials, influencers and tastemakers, billboards, podcast advertising, and email marketing that bring new buyers to Etsy.
- The support you need: Etsy say that they will grow their support team by more than 20% this year so you can get help more quickly and easily, including faster email responses, expanded access to live chat, and prioritisation of your most urgent requests.
- Keeping Etsy unique: Etsy will build on last year’s roughly 40 million USD investment in the teams and technology that help make our marketplace a safe and secure destination for handmade, vintage, and special items. This year they will expand their efforts to remove listings that don’t meet their policies and help you resolve issues with buyers.