This Simple Price Calculator will help Etsy Sellers work out exactly how much you should be selling your products for in order to:
Cover your costs + Pay yourself + Make a profit
I’ve been an Etsy Seller since 2013 selling Luxury handmade Wedding Stationery. Etsy is a platform that allowed my business to grow for some years. If you didn’t know, I had a Luxury Wedding Stationery business for 5yrs, before I decided to focus on helping other wedding professionals build their successful business.
If you are a product based business and your products are handmade, then you should definitely leverage Etsy as a selling platform. It will help you get in front of Brides and Grooms planning their weddings! This little figure may sway your decision: in May 2016 Etsy had 25 million shoppers according to these stats here.
It is really easy to set up an Etsy Account and it does not cost a lot either. It is also the ideal selling platform if you don’t have a website yet. Even if you have a website, it is extra exposure for your wedding business, because Etsy is very popular among brides shopping for handmade.
One of the most common grief among Etsy sellers is pricing your product correctly and making sure you have taken into account the various Etsy fees. It can get a bit confusing and deter some from using the platform. If you don’t calculate your prices properly, the fees may cut into your profit. As a result you will not be making the profit you think you are, and this can cause cashflow problems among others.
1. Calculate your cost – how much does each product cost you to make
2. Your pricing formula: Cost x 2= Selling price
In this spreadsheet, I have used 3 different variation: selling price = cost x 2, selling price = cost x 1.5 and selling price = cost x 1.25
You should see which one works best for your product.
3. Add Etsy listing fees + sales commission to your selling price
In order to simplify the numbers, I have used the the following figures:
listing fees = £0.20
Sales commission = 3.5% of selling price
4. Using Paypal as your payment method
In order to simplify the numbers, I have used the the following figures:
listing fees = £0.20
Sales commission = 3.5% of selling price
Paypal fees = £0.20 + 3.4%
5. Getting paid via Direct Checkout
In order to simplify the numbers, I have used the the following figures:
listing fees = £0.20
Sales commission = 3.5% of selling price
Direct Checkout fee = £0.20 + 4%
6. I have also included the calculation for Paypal fees only added to your selling price
Download the Excel Spreadsheet for FREE, and you only have to fill in your figures, all the calculations will be done for you. The figures you will get are approximate and are to be used as a guide only to give you an idea of pricing. There will be variances where in currency values.
