Etsy is an e-commerce website which focuses on vintage and handmade items and supplies. Etsy has been through tough times lately, with its shares shrinking to the original OPA price after disappointing results in the first quarter.
The company has recently announced that they have increased its marketplace fees. In addition, they have announced that they are going to launch 2 new items for the sellers in its marketplace. They have raised their transaction share from 3.5% to 5%. In addition, they have also begun charging a 5% fee on shipping cost. As per their recent pricing structure, sellers have to pay $1.65 on all transactions, $1.50 for all the goods they will send to their customers and $ 0.15 as shipping cost in comparison with earlier $ 1.05.
Etsy Marketplace’s other fess structure such as $ 0.20 per item to list their items on the Etsy platform will remain the same.
After their announcement regarding increased marketplace fees, left their sellers upset.
The marketplace of handicraft products justifies this increase in their rates to a latest approach in marketing ideas to attract more buyers to sellers. Etsy has invested $ 78 million in the year 2017 in marketing sector to attract buyers. In addition, the company is planning to increase its spending on digital marketing by 40% to stand at more than 110 ml. dollars this year.
One of his plans in the marketing field includes his first television commercials in the United States, during the NBC creation contest “Making It”, in which the Etsy trends expert who is Dayna Isom Johnson, will be sworn. In addition to TV ads, Etsy will be continuing investing in Google’s Listing Product Ads since according to the marketplace its ROI is positive.
Etsy has also proclaimed two new monthly optional subscription packages that will support its vendors. Additionally to its free standard package: Etsy Premium and Etsy Plus. The $10 monthly Etsy Plus package expected to launch in July. It will offer an extended list of tools for sellers, including more features to help sellers tailor their stores, discounts on custom shipping boxes, and cards.
Monthly Etsy Plus Fee will be increased to US$ 20/month in January 2019. Etsy Premium will include the standard tools and additional packages including management tools for owners of larger Etsy stores which will have multiple employees with required dedicated customer service. It will be available in 2019 and Etsy has not yet determined its monthly price.