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I saw someone last week post online that they were giving up selling art online...because Etsy fees were simply too high to bear any longer.
And it made me angry..and sad...because nobody wants to see artists give up...
However it is not the fault of Etsy. Etsy fees are 6.5%.
If you have your own website you will need to pay for a domain and hosting fees of around £200-300 a year plus add on money for automations that you may need. And for each transaction there is a 30p charge plus a paypal/credit card fee of 3%
If you get into wholesale the fees are 50% typically
If you get into a gallery the fees are 50% typically
That is why it is so important to sort out your pricing ahead of time so you can future proof your business and get off Etsy where possible.
I always recommend Etsy as a great place to start for new hobbyists turned business owners, however by sorting your pricing you can be sure that you are able to move into other areas and diversify.
A good rule of thumb is to use the retail model which goes like this:
The cost of materials + your time = your base cost
double this figure = your wholesale cost
double this figure = your retail cost
this gives you enough room to make a profit, with a smaller profit for wholesale with the understanding that you will be selling in larger quantities, or at a gallery where the gallery will be advertising and promoting your work within that cost.
Not to mention when you scale up you will also need to pay tax on your profits too!
So don't wait...sort out your pricing early on.
If you need help with this a more detailed tutorial is available in my Patreon membership, Hobby to Hustle here
