Monday, March 19, 2012

Monday Madness - Etsy Direct Checkout

Some of you may have already noticed Etsy's announcement about the launch of Etsy Direct Checkout.  Only a few select shops are using right now, but you can sign up to be added to the list so you're notified when it's available. This will give you another payment option besides PayPal for U.S.-based sellers. I've really had no problems with Paypal, so I wasn't too interested at first. After I looked at the fees for the service, I was a little intrigued.

Photo by cklausen
Etsy Direct Checkout charges 3% plus $0.25 per sale.  PayPal charges 2.9% plus $0.30 per sale.  These amounts are very similar, but the fees are slightly less using Etsy Direct until you have sales over $50. A couple of pennies probably won't make a big difference unless you sell a large number of low price items.

Sale Etsy Direct PayPal
3.0% + $0.25 2.9% + $0.30
$1.00 $0.28 $0.33
$5.00 $0.40 $0.45
$10.00 $0.55 $0.59
$15.00 $0.70 $0.74
$20.00 $0.85 $0.88
$25.00 $1.00 $1.03
$30.00 $1.15 $1.17
$35.00 $1.30 $1.32
$40.00 $1.45 $1.46
$45.00 $1.60 $1.61
$50.00 $1.75 $1.75
$75.00 $2.50 $2.48
$100.00 $3.25 $3.20

Etsy will deposit the funds in your bank account each Monday and expects they will appear in your bank account in 3-5 business days. The funds will not be available for deposit until about three days after you mark the item as "shipped." PayPal holds your money until you direct it to do otherwise. You can get a debit card to access your funds. PayPal says that transfers to your bank account take 3-5 days. 

Will you be switching over to Etsy Direct Checkout or staying with PayPal?

3 mad comments:

Unknown said...

Hm, thanks for the comparison! I was nervous to think the funds went directly into an account, because my bank limits how many transactions I can do a month. If it's just once a week from Etsy direct, that's not too bad.

Interesting to see the price break, too. It seems pretty fair. All of my items are under $50 right now, so it won't make a big difference. Hopefully it will attract more customers, though! :)

Prairie Primitives Folk Art said...

I'm still debating whether to start using Etsy's Direct Checkout.

I don't like that Etsy expects me to ship the item and then wait 3? days before I get paid for the sale ... and then another few days before the money is in my bank account. With PayPal, I get paid immediately and can spend it immediately via my PayPal debit card!

I don't like having to give Etsy info about my bank account. I suppose I could set up a separate bank account, but that would be a hassle. Yeah, PayPal has my bank account info, but they've been around for 12 years or so and I've not had any major problems with them. Etsy is changing things up every other day, so who knows what could happen!

Most people who are using direct checkout say it has increased their sales. That's the part keeps getting my attention. I don't sell nearly as much on Etsy as I should, for all the hits and hearts I get!

One thing which was just brought to my attention earlier today is that once direct checkout is turned on, it's no longer clear that shoppers CAN still use their credit card to pay for their purchase via PayPal. See the following image on Flickr:

Hmmm ...

Karen T said...

Prairie Primitives Folk Art - thanks for your insightful comment. I'm reluctant to spread my money out over too many accounts and payment options right now. Since PayPal doesn't require you to sign up, I don't understand why people would be reluctant to use it. PayPal has become a standard for making online purchases for most major sites, so I will continue to use them as my payment preference.

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