NET Profit of a $0.99 Digital Download sale on Etsy after Fee Increase
In 2018 Etsy raised fees on the sale of items including digital download sales for the first time in many years. The fees went up to 5% plus the normal payment processing and listing fees still apply to sales. I have dabbled in digital downloads on Etsy several times because it could be a nice passive income stream.
I wanted to see what the profit margin would be on selling a digital download on Etsy for $0.99 cents. Was it worth it? Etsy does allow the buyers to instantly access files attached to the listing, so selling an instant download on the site is hands off and you do not need to do any file delivery or upload. The only problem I have faced in the past is when a buyer does not understand they are buying intangible media and think they were going to receive something shipped in the mail – yes, for $0.99.
Net profit on Etsy breakdown:
Here is the NET PROFIT after fees that you will make selling on Etsy in the US and processing payments using Etsy Payments in 2019:
Instant Download Sale Price: $0.99
Etsy Payments (Credit Card Processing): -$0.28
Etsy Transaction Fee 5%: -$0.05
Etsy Listing Fee: -$0.20
NET PROFIT: $0.46
There it is. You will make $0.46 cents profit on the sale of a $0.99 cent digital download sale on Etsy.