Etsy Announcement: Improved Seller Financial Reporting, Revenue Figures Breakdown

Recently, Etsy issued an announcement announcing a series of improvement measures.

According to foreign media reports, Etsy has brought a brand new Etsy payment report to sellers in the new year . Etsy said that it has improved the financial summary to make it easier for sellers to understand their financial situation, and has also added "tool tips" and descriptors for all fees, making it easier for sellers to understand the fees charged by Etsy and why.

“We’ve redesigned the way we summarize and present sellers’ financials to make it easier for sellers to understand and use information about sales, expenses, and profit margins , ” Etsy explained . “We believe these changes will help sellers not only review their sales, but also effectively plan for the future of their store. ”

Etsy ’s activity summary is now divided into four sections: Sales, Fees, Marketing, and Shipping. It also states, “It is important to note that sales tax/VAT will appear in the appropriate section of your summary.”

However, these changes only apply to reports starting in 2022. In an FAQ , Etsy explained why it didn’t apply these revised plans to reports from prior years :

“We know that every seller has their own unique financial management workflows. We don’t want to disrupt how data has been presented in the past, nor do we want to disrupt those workflows. After careful consideration, we decided to roll out these new seller payment account updates on January 1 so that you can use your existing 2021 financial workflows and focus on adapting to new workflows starting in 2022 if needed.”

Etsy also breaks down its revenue numbers : "Revenue in your store stats includes all of your sales minus any discounts you offer to buyers. This total does not include selling fees, shipping costs, or orders that you have fully refunded and canceled , " Etsy explains.

“Net Profit is the sum of your aggregated activity, which includes your total sales, fees, marketing and shipping costs for the selected time period.” Sellers can find the Net Profit figure on their payment account.

Overall, this improvement by Etsy can allow sellers to have a clearer understanding of their financial situation and the fees charged by the Etsy platform, which is indeed of great help to sellers.

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