Starting a small business is obviously a roller coaster, so let’s talk about what I’ve learned about shipping. Although I am very much an amateur in the small business community some may call it a side hustle but I’d rather poor the energy out there that it is a small business. Either way let’s not get off track, being an amateur means learning as you go and while some may decided to skip past the icky parts I would rather document my journey to help others. Also it doesn’t hurt that sometimes mistakes can make amusing stories too.
The candy store otherwise known as the fabric store is my kryptonite. I love looking up and down the aisles for unique prints and characters. Although I often purchase fabric with the intention of a project there are those spur of the moment deals that I cannot pass up. If you see it, you like it, you best get it while you can. Yes, there are those fabrics that will always be in stock but there are also some that are rare gems. For example, rummaging through the clearance fabric there are items that will not come back to the shelf. Needless to say I have accumulated a lot of fabric over the past few years.
After editing this video I’ve come to the conclusion that I really should pause on buying anymore and instead use up what I have. In order to accomplish this I shouldn’t even browse but I’ll let ya’ll know if I cave in and splurge on something new. Prior to editing I was going to share what my intentions were for each piece of fabric from pajama sets to blankets, however, I underestimated how much I had and it became a bit out of control. If you are curious on a particular scrap project and want to know what I made with it let me know and I would be more than happy to share with you. I hope you all enjoy peeking at my stash and let me know which fabric is your fabric from my collection. Of course if you have any crafty or content ideas please also leave me a comment. (:
While I do not have a “successful” Etsy shop yet I have been learning as I go. At this stage I am learning a lot so rather than be ashamed of having the few orders I do I decided it was the perfect time to share my knowledge to help other new Esty shop owners or those curious as to if Etsy is a good place for them to sell their crafts. In the video today it showcases how I package an order which in itself is always fun to see how people do it and what they include in their packages. Also discussed today is the actual stats for this listing meaning what the profit margin is as well as where the rest of the money actually goes when selling on Etsy. Shop owners usually say that they are “successful” and that Esty takes a portion of the money but I’ve yet to see someone share the raw data. I know I was curious before opening up my shop and yes Etsy gives a full description and calculator on its site, however, I did not find it helpful or accurate. It is very misleading which is why I am breaking it all down for you so you can do the math to figure out how to properly list your items.
Stats Cheat Sheet
- Listing Fee: $0.20
- Relisting Fee: $0.20 * They will charge a $0.20 relisting fee to change the stock number to the next digit and keep the item listing for sale.
- Shipping Label: Depends on the weight and size of the product and will not effect your profit unless you are offering free shipping. The label is added into the order total which is added in through the processing fee.
- Processing Fee: 3.0% of the order total plus $0.25
- Transaction fee for Shipping: 6.5% of shipping total
- Transaction Fee for Product: 6.5% of item total
- Sales Tax: is collected from the buyer and does not effect your stats but is calculated towards the processing fee since it is down with the order total.
*The simplest way to calculate your portion is to calculate 78% off your listing price. Yes that means the other 22% goes stickily to lovely Etsy fees. Keep in mind this is a rough estimate to simply help guide you to create your proper pricing. From the 78% you will also need to dive in a little further by subtracting all material costs. Next subtract your personal labor cost and then you will have your profit total.
Example: A handmade blanket listed for $50 without free shipping. The item cost $7.95 for the customer to ship to their residence and the tax rate is 7.5%. The customer paid $61.75 total.
|Fee||Fee Amount||Running Total|
|Processing Fee: 3.0% of the order total plus $0.25||$1.85 + $0.25 = $2.10||$59.65|
|Transaction Fee for Shipping: 6.5% of shipping total||$0.52||$51.18|
|Transaction Fee for Product: 6.5% of item total||$3.25||$47.93|
|Listing Fee: $0.20||$0.20||$43.98|
Let’s break down our profit into our expenses.
|Material Cost||$12.00||Fabric Cost|
|Labor Cost||$15||Your Portion|
|Retail Price||$50||Listing Price|
|Profit||$16.98||Back into business|
Free PDF Template for Download. (:
Since it has been awhile, I thought a life update was well over due. A lot has happened or rather not happened depending on your perspective. Whenever I start to compare my progress to others my age or just in general it can be a real downer since the expectations I’ve put on myself are based on societial guidelines that ,have yet to be met. You can’t be too far ahead or too far behind and it’s a constant battle that is impossible to win. Perhaps everyone feels this way yet from the outside it looks like others have it all figured out. Let me know in the comments if you feel like you’re on track or if you’ve never thought about it? Not sure how you couldn’t think about it as people question when you’ll get married, when you’ll have a kid and the list goes on and on.