The time has come. The wait is over.
We've received formal approval from Esty for our new integration.
Who sells on Etsy?
Etsy sellers are creative. They thrive on designing. They mostly sell custom products that are hand made and often by them directly in their own homes or workshops.
Etsy makes it easy for entrepreneurs who want to design and make their own products to connect with buyers looking for unique, individual gifts and household items.
Why sell on Etsy?
With more and more buyers wanting to find something truly unique, special and made with love kind of products - Etsy has become the go to place for just that.
Millions of buyers spend billions on products each year on Etsy (according to their own marketing) so it's quite a sizeable pie to get a slice of.
If you make your own products, sell craft supplies or have any old vintage goods ling around then Etsy could be just the place to get them selling.
What are the fees on Etsy?
The following types of fees apply when selling on Etsy:
Listing fees - $0.20 per item listed
Transaction fees - 5% of the sale price
Etsy Ads fees - pay per click advertising
Offsite Ads fees - fees for ads run by Etsy off site
Subscription fees - $10/month
Currency conversion fees - 2.5% of the converted amount
Payment processing fees - 3-6.5% + 0.20 USD (country dependent)
Etsy and VAT collection
As of 1st January 2021, just like on Amazon and eBay, Etsy too started collecting and remitting VAT on sales to UK customers if orders that meet the following criteria:
- The buyer is located in the UK.
- The goods are dispatched from outside the UK.
- The total value of the package (excluding delivery) is less than or equal to £135.
This means that some sales will have Etsy collecting and remitting the VAT to HMRC and some sales will have you as the seller doing so. So it's important to separate these out when doing your bookkeeping.
As of 1st July 2021 the same kind of rules apply to sales to EU customers.
How can Link My Books help?
Link My Books is going to make your Etsy bookkeeping headaches a thing of the past. Period.
Thousands of businesses and e-commerce accountants use Link My Books already to save time and money by automating their Amazon and eBay bookkeeping with us.
Now we are adding support for Etsy too.
Each time you receive a payout from Etsy, Link My Books gets to work.
We break down what that payout is made up of, all the sales, VAT fees and refunds.
Then we create a summary statement which accurately accounts for all your sales, refunds, fees and keeps your VAT and taxes right along the way.
These statements can be sent directly to Xero or QuickBooks and reconcile to the deposits you receive from Etsy into your bank account, exactly to the penny!
Link My Books takes just a few minutes to set up thanks to our super helpful setup wizard and most businesses can save upwards of 6 hours per month versus manual bookkeeping.
Plus by keeping your bookkeeping accurate you'll avoid overpaying VAT, which is really common - especially now that marketplaces are responsible for collecting VAT on certain sales and not others.
To try our new Etsy integration please get in touch with firstname.lastname@example.org and we will help you get started.