Etsy and Amazon Fees Are Eating Seller Margins
Small businesses and individual sellers on ecommerce platforms are experiencing significant and increasing fees, impacting their profitability and forcing them to seek alternative strategies. These fees, often hidden or unexpectedly high, encompass transaction costs, processing charges, advertising expenses, and technical fees across various platforms like Shopee, Lazada, TikTok Shop, Etsy, eBay, and Lemon Squeezy. The rising costs are creating pressure and uncertainty for online merchants.
SOURCES (60)
“I've been reading about how selling on Amazon and Flipkart works in India and the fee structure seems insane when you add everything up. Commission 5-20% Shipping charges FBA/warehouse fees TCS 1% TDS 0.1% Return shipping GST filing costs CA fees For someone doing say…”
[Etsy Seller] ★★★ 3/5 (v2.1.1) — The app is easy enough to use but that is likely because I have used it for a long time. I will say all the extra…
“I run a candle and home fragrance shop on Etsy. Two years in, decent revenue, but 6.5% transaction fees were quietly eating $130 a month. I kept telling myself I'd build a branded site eventually. Finally got a quote from a local web agency. $2,400 for five pages with a three week timeline. That didn't include copy or product photos. I already had both sitting in Google Drive. They were literally charging me $2,400 to put my existing stuff into a Squarespace template. So I didn't do”
[Etsy Seller] ★ 1/5 (v1.122) — I have been selling on Etsy for years, but will be leaving soon. The fees are so high that I hardly turn a profit on sales…
“Lately all my orders are coming in through Off site ads, so that’s another 12% fees on top”
[Etsy Seller] ★ 1/5 (v1.121) — Do ANY OTHER PLATFORM before Etsy seller. Terrible customer service, HIDDEN FEES. People check your bank account! Etsy will constantly pull 20¢, 50 ¢ for helping…
[Etsy Seller] ★★★ 3/5 (v1.121) — I don’t like the surprise of $12+ in fees for sale of a $20 item. I’m going to rethink having an Etsy store. I’m disappointed due…
[Etsy Seller] ★★★ 3/5 (v1.121) — The selling fees and listing fees are high and it adds up quickly. Over $10 for an order and then paying for shipping. I’m out over…