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How To Successfully Work Out Your Actual Etsy Earnings

Business finances are not always the most enjoyable business activity if you are a creative person, but making sure you know your financial numbers is vital to run a successful, and profitable, Etsy shop. So here is a series of posts to help any Etsy seller get on top of their Etsy financials so they can workout their Etsy earnings and the Etsy seller fees they will be charged.
Business finances are not always the most enjoyable business activity if you are a creative person, but making sure you know your financial numbers is vital to run a successful, and profitable, Etsy shop. So here is a series of posts to help any Etsy seller get on top of their Etsy financials so they can workout their Etsy earnings and the Etsy seller fees they will be charged. #handmadebusiness #craftbusiness #creativebusiness #bloomsolopreneur

Business finances are not always the most enjoyable business activity if you are a creative person, but making sure you know your financial numbers is vital to run a successful, and profitable, Etsy shop. So here is a series of posts to help any Etsy seller get on top of their Etsy financials so they can work out their Etsy earnings and the Etsy seller fees they will be charged.

  1. How much does Etsy cost?
  2. What do Etsy’s revenue figures mean?
  3. How to know if you are really making a profit on Etsy 
  4. How to make Bookkeeping easy for your Etsy shop

When I first started out on Etsy, the one thing that caused me the most frustration was trying to work out what my actual Etsy earnings were.  

Maybe I was a bit naive, but I thought that as Etsy is so large, it must display figures that were useful to its sellers. I also assumed they would be transparent on how they calculated them. Unfortunately, this isn’t the case. 

Initially, I compared the revenue figures on the Dashboard and Stats pages to give me an idea of my Etsy earnings. I quickly realised that that was not a good indicator of what I was actually getting paid into my bank account. 

I then decided I would use the Sales & Credits value minus the Fees & Taxes value from the payment account. Again, I assumed this would give me a good idea of what my Etsy earnings were and in turn what payment I could expect to receive in my bank account. I got paid monthly, so surely the monthly figures would relate to the monthly payment. Nope, that didn’t work either. 

So out of frustration, I spent many days researching how each of the figures was calculated. I wanted to find out if there was an easy way to calculate what my actual Etsy earnings were. 

The quick answer is that there isn’t, but understanding how the figures get calculated is useful to know. 

Here is the result of my research. 

Let’s talk about payments from Etsy.

So you’ve made your first sale and you want to know how you are going to get your hands on the cash. 

Firstly you have to pick your Etsy payment method. 

As of 2020 Etsy Payments is the primary way to get paid by Etsy if you are located in these specific countries (see if you are in the list here). This means if you run your shop from a country in Etsy’s list, you have no other choice than to use the Etsy Payment mechanism. 

This is not necessarily a bad thing. You get the benefit of your customers being able to choose from a wide variety of methods to make a payment, without you having to have an account to be able to receive each payment type. Etsy does all the hard work. These payment types include: 

  • Credit cards
  • Debit/bank cards
  • Etsy Gift Cards and Etsy Credits
  • PayPal
  • Apple Pay
  • Google Pay
  • Klarna Invoice payments (Germany)
  • iDEAL (the Netherlands)
  • Sofort (Austria and Germany)

If you live in a country that is not on the list, then you have to use Paypal. This means that your customers pay directly into your Paypal account. This means you encounter Paypal payment processing fees rather than Etsy payment processing fees. 

As most countries these days are on the Etsy list I won’t talk about PayPal here, all you need to know is that the only difference for you in terms of fees is that the Payment Processing fee will be different.

How often do you get paid? 

When you make a sale through Etsy Payments, the funds are first added to your Payment Account in your Shop Manager->Finances.

Then, according to your deposit schedule, your available funds will be sent to your bank account.

To receive payments you must have funds available in your Payment Account, and they must meet applicable minimum criteria for your location (if you are interested in the requirements this is what Etsy says

By default, your shop will be set up with a Weekly schedule, which sends you the funds every Monday. You can change this to daily, bi-weekly, weekly or monthly in your Shop Manager->Finances->Payment Settings. 

here is a series of posts to help any Etsy seller get on top of their Etsy financials so they can workout their Etsy earnings and the Etsy seller fees they will be charged.

If you set your schedule to Monthly, the funds get sent on the first Monday of the following month. You get paid whatever your Balance is in your Payment Account.

Please note, the balance on your Monthly Statement is NOT the amount you will be paid. This will only happen if you have no further transactions between the statement being generated and your payment being made.

How much will I get paid? 

The amount Available for Deposit is the amount you will be paid in your Etsy Payment Account. This equates to the sale price minus all the fees, refunds and taxes. This calculates automatically. So if you haven’t made any sales since your last payment and you add some new listings, your Balance will be negative due to the listing fees. If it is still negative when your next payment is due you will get requested to MAKE a payment rather than receive one. 

This is one of the reasons why I don’t choose Daily for my payment schedule. I’d rather gain some sales to cover any fees. But this is my personal choice.

Now we have covered the basics this is where it starts getting confusing/interesting. 

What do all the different numbers mean?

Sales & Credits

Your Sales & Credits total in your Finances is your Etsy sales minus the payment processing fees and the market place taxes collected by Etsy for the time range you selected. It is not your Etsy earnings. 

This Sales & Credits total is still a gross value as it includes shipping and all other fees and taxes (other than the payment processing fee). 

It also sometimes includes tax collected and remitted by Etsy from buyers. 

Finally, this value does not include any refunds that you may have had to process.

I recommend that you do not use this amount for anything important. It should not be used on your tax forms. 

Fees & Taxes

The Fees & Taxes total shows your fees and taxes for the time range you selected. It includes fees for listing items, receiving sales, marketing your shop and taxes collected by the seller and VAT collected by Etsy on selling fees. 

The Fees & Taxes chart does not include tax collected and remitted by Etsy from buyers. 

Refunds are also not included in this figure. So, if you assume that your Etsy earnings is a simple calculation of Sales & Credits minus Fees & Taxes, you would, unfortunately, be wrong. 

You can get a full list of all your sale credits, fees and taxes by downloading the monthly statement. Please do this if you want an accurate picture of your sales, don’t rely on the totals in the charts, dashboard or stats.

The monthly statement download does include everything, including refunds, so using your own calculations, you can work out your actual income.

Using your downloaded monthly statement, you can calculate the following:

Sales & Credits = sum up the Net column where all the rows where the Type = sale. 

Fees & Taxes = sum up the Net column where the Type doesn’t = Sale, Refund or Deposit from your monthly statement.

These figures should match the amounts you see in the Payment Account charts. 

To calculate your Etsy earnings correctly, take a look at this post about bookkeeping.

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Hi there lovely

I’m Nicola, lover of all things colourful and a garden obsessed planning addict!

My main goal is to help overwhelmed creative solopreneurs gain confidence, business skills and a whole heap of motivation so that they can set forth on their creative adventures with all of the tools they need to build a profitable online business.

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