Putting a price on the items you sell can be one of the trickiest parts of running a small business. Many of you have asked for additional tools to help you create your pricing strategy. We’re excited to introduce a simple new estimated profit calculator, right in the listing form, that can help you consider your expenses when you price your items.
Remember: As an Etsy seller you always set your own prices.
How it works*
Head to the Price & Inventory section of the listing form from a desktop or mobile web browser. (This new tool isn’t available in the Etsy Seller app just yet). There you’ll see a new option to estimate your profits. Just enter the price for the listing and the costs that go into the item. Consider things like your materials, labour, packaging, marketing, and postage not covered by the buyer. And make sure to include the cost of your time, even if it's just an estimate!
Then, the calculator will show you an estimate of the fees you’ll pay when the listing sells, including listing, payment processing, and transaction fees. The calculator does not include fees that could vary for each order – your fees could be higher if the sale came from an Offsite Ad or lower if the sale came from your Share & Save link.
Once you’ve entered those details you’ll see your estimated profit – what you could earn when the item sells. This optional tool only calculates a basic estimate of what you might earn on a sale. It’s a good starting place for thinking about pricing for profit, but it's not a guarantee. Understanding the profit you could earn on each item can help you find your pricing sweet spot. Already know how to set your ideal price? Using this new tool is completely optional!
Become a pricing pro
This tool gives you helpful insights into your potential profits, but there’s a lot that goes into creating a pricing strategy that is best for you. We cover the essentials in The Ultimate Guide to Pricing. Need some extra support identifying your costs? Our handy interactive worksheet can help you think through your costs and your ideal profit margin.
Note: As an Etsy seller, pricing is at your sole discretion. This means that you are responsible for making your own pricing decisions and are free to set prices as you wish. That said, remember there are also legal considerations to be aware of around pricing and discounting. Sellers can't mislead consumers on discounted prices. The original price must be a true price that was in practice for a substantial amount of time, so, for example, you can’t artificially increase a price and cut it down just to make it look like you’re running a sale. Etsy provides this estimated profit calculator as an information tool only, it is not a guarantee.
Words by Taylor Combs
