Etsy has confirmed it will be raising seller fees as detailed in its Fourth Quarter and Full Year 2021 Results report. Etsy’s Consolidated GMS was a record $4.2 billion, up 16.5% year-over-year; Etsy marketplace GMS was also a record $3.8 billion, up 11.8% year-over-year and 154% on a two-year basis says the report. Consolidated revenue was a record $717.1 million, up 16.2% year-over-year, with a take rate (i.e., Consolidated revenue divided by Consolidated GMS) of 17.1%.
Etsy also confirmed that its seller transaction fee is increasing from 5% to 6.5% the first increase since 2018. This fee change will go into effect for Etsy sellers on April 11, 2022. Josh Silverman, Etsy, Inc. Chief Executive Officer explains more about the seller price increases and performance of Etsy in the report :
Etsy seller fees increasing April 2022
“We’re planning to invest even more in making Etsy the best place to run a creative business – in fact, we expect to invest most of the incremental revenue from this fee increase in marketing, seller tools, and creating world-class customer experiences. Mr. Silverman commented, “Etsy enables anyone with a creative idea to start a business and reach a built-in audience of more than 90 million shoppers. We have demonstrated our ability to make improvements that directly translate into more sales for our sellers, as evidenced by record sales per seller in 2021. Our new transaction fee will enable us to invest in key areas like marketing and support to further extend our strong momentum.”
“Reflecting on 2021, it is fair to say that Etsy has retained much of the positive impact we’ve seen from the dramatic adoption of e-commerce following the start of the COVID-19 pandemic. In fact, more than half of Etsy’s 2020 active buyers, and 37% of new buyers came back to make a purchase in 2021. In addition to gaining market share, driving excellent buyer engagement, building Etsy’s brand globally and helping our sellers grow, we continued to take care of our people, communities, and the planet. We’re also leveraging Etsy’s operational playbook for our most recent acquisitions — Depop and Elo7 — which, alongside Reverb, expand the reach of our overarching mission to ‘Keep Commerce Human’.”
You can read the full Etsy company report here.