Etsy Introduces Estimated Profit Calculator, Sellers Say It's Missing Key Data To Be Useful
Etsy has rolled out an Estimated Profit Calculator, but sellers say it is missing important information to be useful and is really only a "some fees calculator."
Putting a price on the items you sell can be one of the trickiest parts of running a small business. Many of you have asked for additional tools to help you create your pricing strategy. We’re excited to introduce a simple new estimated profit calculator, right in the listing form, that you can use to help consider your expenses when you price your items.
How it works
To check it out, head to the Price & Inventory section of the listing form in a mobile or web browser. (This new tool isn’t available in the Etsy Seller app just yet).
Just enter your price and the costs that go into the item to see your estimated profit—what you could earn when the item sells! This tool only calculates a basic estimate of what you might earn on a sale. It’s a good starting place for thinking about pricing for profit, but it's not a guarantee. Understanding the profit you could earn on each item can help you find your pricing sweet spot.
Already know how to set your ideal price? Using this new tool is completely optional!
The new tool is so far only available when using the new listing form and as Etsy seller and ecommerce consultant Cindy Baldassi points out:
Etsy calls it an “estimated profit calculator”, when really, it’s just an Etsy fee calculator, and not a good one at that. It includes the lowest processing fee possible (some countries have a range of processing fees) and also excludes taxes you may pay on your fees.
Other sellers echoed the sentiment, saying it may be helpful for some new sellers to get an idea of what the basic fees might be but it by no means provides an accurate picture of a true estimate profit.
I cannot see how that will be accurate, because they don't know if the buyer will come through Google ads, where we have no control. My store offers free shipping after $35.00 and I do not charge a fee to add on additional items to shipping. How do they know the buyer won't be getting free shipping, where there is no fee paid to them?
But it’s not all profit, is it? It’s what you receive from Etsy, which isn’t really profit. So calling it a “profit calculator” is a bit of a misnomer. Out of what Etsy calls “profits”, I still have to pay for supplies and the consequent postage for them, my time, my packaging, etc. “Disbursement calculator” would be more accurate.
There's a plethora of this type of calculator scattered across the internet. Will they potentially exploit our data akin to Amazon's practices?
I simply yearn for developments that truly benefit us.
The true cost and profit are far more intricate than this calculator suggests. If you're capable of determining your actual expenses, you should be able to accurately calculate your profits, rather than relying on these rudimentary estimates.
As Etsy's stock takes a nosedive, they offer a profit calculator that conveniently overlooks additional expenses like ads. Furthermore, it fails to provide guidance on how to calculate the actual cost. I came across a post on Instagram claiming it's a "game changer," but I fail to see how. Perhaps there's something I'm overlooking, or maybe my years in business have made me skeptical.
I hope they refocus on enhancing the platform or at least restoring it to the vision they once promised us.
What do you think of Etsy's new Estimated Profit Calculator? Let us know in the comments below!
