In this article, we're going to talk about how to set the right price for the products you sell on Etsy. The Etsy profit calculator by EverBee is a free tool that any Etsy seller can use in order to price their Etsy listings correctly in order to have a profitable business. Let's see how it works and why this tool is so important!
Why do I need to use an Etsy profit calculator
Selling on Etsy, like on any online marketplace, entails having to pay some hefty fees. For example, you pay a fee whenever you list a product, you pay a transaction fee whenever a product sells, payment processing fees, advertising fees, and so on. That is why, when you set a price for your product, you need to make sure that after all the fees are paid, you're still left with a profit margin that you're happy with.
In addition to Etsy fees, there are other costs that you need to take into account. Such as shipping costs, the cost of materials that go into making your product, as well as the cost of labor (if applicable).
As a beginner, you will most likely not get this right on the first go. You'll list your product on Etsy for a price that you consider adequate, and you'll be surprised with how little money you'll be left with after fees, costs, and taxes. Trust us, we've been there. As well as many other Etsy sellers.
That is why, using an Etsy profit calculator is advisable. It will help you set a correct price for your item, so that when it sales, you're left with your desirable profit.
The Free Etsy Profit Calculator by EverBee - Practical example
One of the free tools offered by EverBee is their Etsy profit calculator. It's a tool that any Etsy seller should use. It's very easy to navigate and user-friendly. Even as a new seller, you should get the hang of it pretty quickly.
Let's have a look at the dashboard in this example we did:
As you can see, the calculator takes into account all of the major costs and fees you'll need to pay, such as:
- production costs
- shipping costs
- fees (listing fees, transaction fees, payment processing fees, advertising fees - here you can also include off-site ads, etc.)
It also helps you set a discounted price correctly, so that you still get your desired profit margins.
As you can see in my example, from the initial price of $150, I am left with only $58.43 after all the costs. That's almost $100 that get spent on materials, production, shipping, Etsy fees and Etsy ads. Many people will list a product for $150 and expect to get a larger profit of $120-130. But, as you can see, that's not the case!
Earn more money by pricing your products correctly
Now that you've seen this example, you know why it's important to set a price for your product that is spot on. Otherwise, you'll be losing money, instead of having a profitable business.
The Etsy profit calculator by EverBee is a free tool that looks at all the variables for you. You can even expand the costs tab, to include even more detailed information, such as money that goes into specific materials, labor, packaging, etc.
Running a business means having a clear overview of the money that you invest, as well as of your returns. You're bound to make some mistakes, especially in the beginning. But working with an Etsy profit calculator can help you diminish your loses significantly.
Looking to learn more about having a profitable Etsy store? Check out our blog for tons of free resources, as well as our Etsy optimization services.
Video tutorial on how to use the EverBee Etsy profit calculator
For your convenience, we've also filmed a video tutorial on how to use the Etsy profit calculator by EverBee. Give it a watch. We're sure you'll find it useful, and easy to follow:
And please, let us know in the comments what's you experience with the tool. How do YOU price your items? Do you take all these costs into account? Are your profit margins as high as you expect them to be? We'd love to hear from you.
Disclaimer: Some of the links in these article are affiliate links, so we may get a commission if you sign up to paid EverBee plan through them.