The Etsy® Sales Process

 

Bookkeeping for Etsy® Sellers

 

Lesson Info

The Etsy® Sales Process

So here is a simplified version that I made just for the screen because the downloadable pdf has a lot more parts and a lot more illustrations all laid out but for the purposes of on screen this is the process as as a flow so when you list tonight um the first thing that gets added to your bill is a twenty cent listing fee then when you actually sell that item and you get paid for it uh you've got etc takes their cut right off the top right there commission which is three and a half percent typically this piece is what you get to to keep this is your product sale um the shipping and handling is another piece and then sales tax if it's taxable and we'll talk about which sales or taxable a little bit later um then when you process the payment um either through etc direct check out or paypal and I've also seen that now uh the ceo chad dickerson just a couple months ago um revealed in an interview that apparently ninety percent plus of etc transactions now are happening through that direct...

check out so a lot of people have moved away from paying with paypal on etc to this etc direct check out they take their cut of that too for offering the merchant service um and then they will automatically deposit that in your bank account it's currently set up I believe to deposit every monday but you can change those settings. You could do a manual deposit whenever you want. We'll look at that a little more closely later. On, um, at the same time, you need to ship that good out to your customer so you would ship that item through, etc that cost of that shipping label would end up on your etc bill as well. So some of the pieces that s e is taking end up on your etc, bill, which you will get once a month. And then you pay for it. Um, some of it like the etc shipping label there, negotiating their cut of that with the postal service like we're not involved in this at all. And then other pieces like the merchant service, they're just sort of quietly taking, and they don't even really tell you about it. You just get less in your bank account, then you made here, right? So, um, those are the reasons why, when they ah, introduce the direct check out why they when they started the shipping label when they, uh, what was the other thing on here? When they made all of these changes, I suddenly had a lot of confusion around my own bookkeeping because I was using a totally different and separate system, all of these things I was tracking at different times, uh, you know, if I go to a crafts fair, for example, I'm paying my booth, feed my listing feed, basically right up front, right? And then I go, and I sell things there's, no shipping and handling. Of course, I take care of the tax there's, no commission that I'm worried about, um, and then to process the payment, you know, if I used a service like square or something similar, um, again, that's, that's, something where they you'll get, like, just a statement with everything that shows how much they've taken out. Where is in this case, it's? Just depositing, and you have no clue where that extra money went. Unless you go look it up, you don't really know what the percentage was. You've got to come back out into it. So this is. This is the flow, as it stands right now.

Class Description

Easily integrate your Etsy® transactions into your small business bookkeeping with tips and insights from Lauren Venell in Bookkeeping for Etsy® Sellers.

Lauren is on a mission to simplify small business bookkeeping for crafters and artists. In this class she’ll show you how to manage Etsy® transactions, inventory, and expenses. You’ll learn how to compare Etsy® earnings against other income streams and how to integrate Etsy® into your overall bookkeeping. Lauren will help you spot sales patterns and identify opportunities for growth or restructuring based on the numbers.

Etsy®'s systems are overwhelming – this class will give you the clarity you need to successfully run your Etsy® shop. You'll learn how to set up and track your shop account, deal with Etsy® credits, and manage sales tax and coupons.

Whether you are exclusively an Etsy® seller or its just one of many revenue streams, this class will make Etsy® transactions easy to handle and every aspect of your business bookkeeping more manageable and fun.

Be sure to check out Lauren's other course Bookkeeping for Crafters.

Reviews

a Creativelive Student
 

This course has a lot of helpful information, but I do caution that there isn't really enough time to get it all down if you are watching the livestream. Also, quite a bit of time is spent talking about VAT rules which are out of date, and much easier to deal with now.