Etsy transaction fees to increase in April

Etsy announced that the Etsy transaction fee will increase from 5% to 6.5% starting April 11, 2022. The company said that most of the incremental revenue from this fee increase will be invested in marketing, seller tools and improving customer experience .

Etsy's revenue has also seen massive growth throughout the pandemic , mainly due to two reasons: first , the growth driven by sellers making masks, and second, the pandemic forced millions of people around the world to work from home , with almost no social activities , and boredom at home made online shopping attractive.

However, as the impact of the epidemic gradually subsides, Etsy not only needs to continue to attract buyers ' shopping interests, but also hopes to further increase the platform's revenue . Data shows that the platform's revenue increased by 16.2% year-on-year in the fourth quarter alone . But in order to achieve this goal , investment is needed, which is one of the reasons for the increase in platform commissions.

Etsy said it plans to make significant investments in marketing, seller tools and improving the customer experience so that it can continue to maintain platform revenue growth . To support this goal, on April 11, the company will increase its current 5% transaction fee to 6.5%.

The platform said increasing Etsy commissions will allow them to improve in three key areas.

Attract more buyers to the platform . Last year, Etsy spent nearly $600 million on marketing. This year they plan to invest more, including TV ads, influencers and tastemakers, billboards, podcast ads, and email marketing to bring new buyers to Etsy.

Etsy said it will grow its support team by more than 20% this year so sellers can get help faster and more easily, including faster email responses, expanded live chat, and prioritization of sellers’ most urgent requests .

Keep Etsy unique. As an e-commerce platform known for handmade products, Esty will build on its investment of approximately $40 million in its team and technology last year to make it a safe and reliable e-commerce marketplace for handmade products, antiques and special items . This year, the platform will continue to move forward , remove product listings that do not comply with its policies , and help sellers resolve issues with buyers.

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