Thursday, May 7, 2009

Pricing on Etsy

The art of pricing is always tough thing to get right. If you are priced too low people will think your stuff is inferior (this is the internet where people can't touch and feel) and if you are too high that is obviously an immediate turn-off.

Shipping can also be something that stops people buying, but they do understand if you are honest about how much it costs (packaging and shipping costs) and tell them why you are charging more than the shop next door (FedEx, special packaging, etc).

This is how I do it.

First work out your costs - include materials and then your time (e.g. going to the shops, listing the item, photographing) and don't forget about Etsy and Paypal fees.

Then search for similar items and see what they are selling for - remember to look and see if the shop has actually made any sales at that price.

Think about whether you would like to be on the cheap side and make more sales or rather be higher priced, better quality with fewer sales.

If you would prefer bulk sales, then offer a bulk discount and write that in your shop announcement.

Finally, I always say start high because you can always decrease your prices. Experiment - some people say .99c is a bad idea, while others say it works well for them.

Have fun!

Etsy fee calculator
Chris Parry's spreadsheet on pricing

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