If you already sell on Etsy you’ll be aware the fee structure isn’t the easiest to understand (Sale fee, Processing fee, shipping fee, offsite ads, oh and don’t forget the VAT!) but now it seems Etsy are introducing another fee to your bill the Regulatory Operating fee.
The cost of doing business in many countries has recently increased due to new regulations, such as Digital Services Tax.
In order to help cover a portion of these costs, sellers in the UK will see a new Regulatory Operating fee on their Payment Account. This 0.25% fee will be charged on each order* but is expected to be a small amount. (Ex: the fee on a £25 order would be just 6 pence.)
Through this fee, Etsy will be able to continue supporting sellers, allowing you to make a positive impact on your local community.
*The Regulatory Operating fee is charged on the price you display for each listing plus the amount you charge for postage (including gift wrapping and personalisation, if applicable). However, please note VAT will be charged on the Regulatory Operating fee where applicable.
Although it says it is only a small fee, it will be something else to think about when pricing your items as all these fee’s soon add up. There is nothing worse than making a sale and then watching all the fees come off and end up breaking even, or even worse at a loss.
You can find out more about Etsy’s fees by clicking here
Even with the Fee’s it is a good platform, especially for those starting out as it does come with a ready made audience. Looking to sell on Etsy? Click the image below for 40 free listings 🙂