Etsy Moves to Variable Shop Setup Fee In Unannounced Policy Update
Etsy has made an unannounced change to their fee and payments policies, taking the new shop set up fee from a flat rate $15 to a non-specific amount based on "a number of factors."
Ecommerce consultant and Etsy seller Cindy Baldassi caught the change when she noticed the original announcement about the shop set up fee in the Etsy community noted it had been updated on 6/24 but didn't specify what had been updated or changed.
Etsy introduced the new shop set up fee in February as part of broader changes ostensibly made to help "keep the community safe" with seller ID checks and delayed payouts for new sellers.
Liz Morton
But besides the supposed security benefits to adding friction to the new shop sign up process, investors were also quick to note this new fee would add a revenue bump as Etsy faces increasing macroeconomic headwinds - which makes the timing of this unannounced change and loosening of the set dollar amount even more noteworthy.
The Etsy fees policy page was changed on June 20 to simply removed any mention of a dollar amount, leaving it entirely up in the air and "flexible".
To open your Etsy shop, you may be required to pay a one-time set-up fee of $15 USD or the converted equivalent in your local currency. Please note that if applicable, the set-up fee will be displayed and charged as part of the shop set-up process.
To open your Etsy shop, you may be required to pay a one-time set-up fee. Please note that if applicable, the set-up fee will be displayed and charged as part of the shop set-up process.
Baldassi reported several threads in the Etsy community showed some sellers have recently seen new shop set up fees around $28.50 to $30 USD while others were still charged $15.
An Etsy Senior Product Insights Manager responded to Baldassi's community post, admitting that the change to the shop set up fee was made so Etsy could explore the impact of a slight increase to the fee to invest more in security and support and advising the fee value is now based on a number of factors with not transparency or insight into what those factors might be.
Hi @cindylouwho2, I'm a Sr. Product Insights Manager here at Etsy. We outlined our plan to strengthen shop onboarding earlier this year here. We’re committed to keeping Etsy safe and secure so sellers can feel confident building their businesses here.
After we initially introduced the set-up fee earlier this year, we wanted to explore the impact of a slight increase to the fee so we can invest more in enhanced security checks and support for new sellers.
The onboarding fee value is based on a number of factors and made visible when you begin opening your shop and again before you are charged.
Thanks for sharing your concerns! We encourage you to reach out to Etsy support directly if you have any concerns about the accuracy of Etsy's billing and fees.
If you've opened a new Etsy shop recently, I'd love to hear about your experience and how much the set up fee was! Leave a comment below or contact VAR.
