Don't let the Etsy dashboard fool you. Your Etsy Earnings Aren't What They Seem (2023)

Etsy is a popular online marketplace for vintage and handmade items, but many sellers are surprised to learn that their Etsy earnings aren't what appears on their Etsy dashboard.

When I first started at Etsy, the most frustrating thing was figuring out how much Etsy would deposit into my bank account. Since then I've learned a lot about how Etsy works, and in this post I'm going to break down exactly what all the different numbers mean for your Etsy earnings.

How to interpret your Etsy panel

You've sold a few items on Etsy and now you want to know how much is going into your bank account.

When you log into Etsy, the main window will show you your sales statistics. This page shows yourRevenue.The same value is also displayed on your statistics page.

The income number is not the amount that will be paid to you.

This Etsy Earning Value equals your sales (sale price + shipping) minus any discounts you've given to buyers. This total does not include fees, shipping charges, or orders that you have refunded and canceled.

This number can be useful for comparing month-to-month and checking your performance. However, it should never be used to fill out your tax return, nor can you use it to report how much profit you've made.

(Video) Etsy Account Issues and How to Fix

What your Etsy dashboard doesn't show you

The value of earnings is neither the amount paid to you nor your net income for tax purposes; for these you will have to look elsewhere.

Etsy has been working hard over the past year to improve how your financials are presented. As a result, it now shows something that is relatively significant.

Let's look at each illustration to explain what it shows you.

Available for deposit

The sumAvailable for deposit,Found under Finance -> Payment Account, this is the amount that will be paid to you when Etsy takes payment.

This is the selling price minus all fees, refunds and taxes. The amount includes only sales that have been fully processed by Etsy, so funds from new orders are available for next-day transfer.

This number is only visible on the Payment Account screen.

net profit

This number is available on the Payment Account page and on the monthly statements. It is the sum of all sales, fees and services of the seller. Please note that the term profit should be used loosely as this is only the information Etsy sees. Additional expenses you incur outside of Etsy are not included. To calculate your actual profit, you need a more robust tool to account for everything.

Seller's Sales, Fees and Services

Your sales, fees, and seller services in your Etsy Finances have now been separated so you can see the numbers broken out in each section. The totals for each of these areas are used to calculate your Net Win Value.

(Video) 5 Reasons WHY You’re Not Getting Sales On Etsy (and how to fix)

Keep in mind that this is not the amount you will be paid.

current balances

The current balance for the month is displayed under Payment Accounts. It's a running record. Once a sale, fee transaction, refund, or payment occurs, this number is updated.

This number should match the amount available to deposit. The only difference is that there is a delay while Etsy waits for payment processing to complete.

How to calculate your actual earnings from Etsy

To get a more accurate picture of how your business is performing, you need to make sure you have the right tools. Still, your monthly Etsy statement is a good place to start. You can find this under Store Manager->Finances->Monthly Statements.

Unfortunately, you can only download these monthly. A whole year in a row is not possible. You may also notice that some transactions on this statement are from the previous month. I think it's a time zone thing.

The monthly statement has the following format:

Datum– Date of transaction.

Typ– This is the type of transaction. The name should be reasonably obvious to indicate what it's for, but read this post if you want to know what the fees are for.

(Video) Is Etsy Too Saturated to Make Money in 2023? 😲

title– This gives more information about the origin of the transaction. Unfortunately, it doesn't use a consistent reference number, such as B. the order number, so you have to make a decision to determine which order the transaction relates to.

Information– Again, no further information on the transaction is used and an inconsistent reference number.

Splits– This is the currency of your shop. File amounts are displayed in this currency.

Crowd- This is the sales amount, including the marketplace sales tax paid by Etsy. Marketplace sales tax is generally applicable to all non-US orders and therefore can only be calculated using the following calculation:.

Etsy Marketplace Sales Tax = Amount - (Net - Fees and Taxes).

Fees and Taxes- This is the amount you were charged in fees.

Net– This is the net amount of the payment after all taxes. Due to the marketplace sales tax explained above, don't assume this is the amount minus fees and taxes (never use this number for your numbers).

While all of this is interesting, as a business you really want to know how much profit you're making, and you're not going to find that out just from Etsy's numbers.

(Video) How To Use Erank To Find What To Sell On Etsy | Etsy for Beginners

That's why I created oneSmall business accounting spreadsheet. Download monthly statements and orders and calculate your income every month. It also breaks down and totals all the fees, taxes, etc. so you know where you stand without having to do the hard work.

Why aren't my Etsy earnings matching my Etsy payments?

As a small business, it's always a good idea to track your income and expenses on a monthly basis. The easiest way to do this as an Etsy seller is to use monthly statements.

After being an Etsy seller for a while, you may find that your Etsy earnings (sales minus all fees) on your monthly statement don't match what you received that month. Or you may find that some transactions appear on the statement that you feel shouldn't be part of that month.

A significant factor affecting the difference between payments and the balance of the monthly bill is time. If you are paid monthly, the payment is generated on the first Monday of the month. This can be up to 6 days after the end of the month. The payment includes all sales for those extra days instead of the expected amount from the monthly statement.

I think the extra transactions you see in some months (only at the beginning and end of the month) are due to time zone differences. Living in the UK, I often see extra transactions, but if you live in the same time zone as Etsy's servers, you may never encounter this issue.

Suppose you want a more consistent and complete set of accounts. In this case, you need to dig deeper, create your own bills with monthly statement downloads, and be consistent with the way you process them.

Create a good accounting process to keep track of your numbers

The only way to ensure you're looking at the right numbers when calculating your Etsy earnings is to create a good accounting process. To do this, all data should be taken from the account statements and order files and your own calculations should be made. If you want more details on how to keep your Etsy accounts, check out herePost.

Let's say you want to do your bookkeeping the easy way and avoid doing the math yourself. why not check out oursSmall Business Accountingspreadsheet. This takes your downloaded files and automatically calculates your monthly earnings, fees and taxes and generates the totals. You can also include additional sources of income and expenses. This will help you quickly reconcile your earnings from Etsy and fill out your tax return.

(Video) This Hidden Etsy Product Hack Made Sales in 24 Hours

Knowing your actual income is critical to successfully selling on Etsy. We hope this has been a helpful guide to understanding your Etsy income.

If you're an Etsy seller, you might be interested in these other posts that will help you match your Etsy numbers.

  1. How much does Etsy cost?
  2. How do you know if you're actually making a profit on Etsy?
  3. Here's how to make accounting for your Etsy shop easy

Disclosure: This post may contain affiliate links. Please take a look at oursPrivacy Policyfor more details.


Why are so many people leaving Etsy? ›

Overall fees

The most obvious reason why most of the sellers are deciding to leave Etsy is the number of fees you need to pay in order to sell on the platform. Fees charged to Etsy's artists and craftspeople have certainly doubled (or even tripled) over the last couple of years.

Does Etsy report earnings to the IRS? ›

Etsy typically reports your gross income to the IRS on Form 1099-K, but even if you don't receive a 1099-K, you still have to report your Etsy sales income on your tax return.

How do you beat the Etsy algorithm? ›

Put the most important words first

So, make sure the two or three most important words are first on your listing title. And that's it. Sure, there's a picture but if people can't tell within about a second what your item is, they're unlikely to click. They will scroll on past.

Why are people angry with Etsy? ›

They're also upset at what they say is a growing number of people selling mass-produced goods they do not design themselves on the platform, and the pressure to offer free shipping, among other things.

Who is Etsy's biggest competitor? ›

The Best Etsy Alternatives of 2023
  • Shopify: Best for Established Businesses.
  • Amazon Handmade: Best for Those Already Selling on Amazon.
  • Wix: Best for DIY-Minded Users.
  • Weebly: Best for Users on a Budget.
  • Squarespace: Best for Large Volume Sellers.
Jan 17, 2023

Why are sellers boycotting Etsy? ›

Etsy's fees are still lower than e-commerce competitors like Amazon, which charges eight to 15 per cent in addition to other fees. Still, continuing to raise fees could risk Etsy's reputation as they deviate further from the initial values of the company that allowed small businesses to make money, he says.

Do Etsy sellers get audited? ›

Listing Audit performs a comprehensive audit of each listing for how well it complies with the guidelines found in Etsy's Seller Handbook: Ultimate Guide to Search and Google's Webmaster Guidelines.

How much can I sell on Etsy without paying tax 2022? ›

The federal threshold of $20,000 in sales and more than 200 transactions will remain in effect for 2022 taxes. 11 states have lower thresholds for receiving a 1099-K. You'll receive a Form 1099-K from Etsy if you met either the federal threshold or a threshold for your state in 2022.

How do I avoid paying taxes on Etsy? ›

Avoid overpaying taxes on your Etsy shop by keeping organized records of all business expenses throughout the year. Using a tool like QuickBooks Self-Employed allows you to track sales, tax deductions, and expenses in an app that directly integrates with your transaction data.

Why is it so hard to get sales on Etsy? ›

Your first sale is ALWAYS the hardest to make! This is especially true on Etsy, because Etsy shoppers rely greatly on reviews. If your shop doesn't have any reviews, then it makes it much harder to get potential buyers to trust you.

Is Etsy oversaturated? ›

A second common but incorrect claim to Etsy is that it is oversaturated. Yes, there are more than 85 million items listed on Etsy, but there will be huge competition regardless of where you host your business.

What is the hottest thing to sell on Etsy? ›

  • Handmade and personalized jewelry. Without a doubt, handmade jewelry is one of the most popular things to sell on Etsy. ...
  • Jewelry and craft supplies. ...
  • Printables. ...
  • Digital artwork. ...
  • Stickers. ...
  • Notebooks and journals. ...
  • Party decorations. ...
  • Wedding products.
Jan 31, 2023

Are Etsy sales declining? ›

Summary. Etsy has lost tremendous value in 2022 amid rising interest rates and falling retail sales. Consumer-leading economic data suggests spending will continue to fall in 2023, and holiday sales may be weaker than expected.

Why is Etsy shutting down shops? ›

All Etsy shops get shut down because they did not follow Etsy's selling policies. Understand that it's HARD to get shut down and you don't have to worry if you're doing things on the up and up.

Can you cuss on Etsy? ›

Keep in mind that if you're selling an item that features profanity, you should refrain from using that language in your item tags and titles. Make your thumbnail image safe for all audiences.

Is there a better selling platform than Etsy? ›

1. Shopify. Just like Etsy is one of the biggest online marketplaces out there, Shopify is one of the biggest ecommerce platforms. With more than one million users, Shopify is a trusted Etsy alternative for entrepreneurs who want to create their brand experience from scratch.

What shop is better than Etsy? ›

Big Cartel: Best For Lower Volume Sellers. IndieMade: Works With Existing Etsy Store. Zibbet: Best For Established Sales Channels. Volusion: Best To Start Small & Grow.

Why are people striking against Etsy? ›

They are reselling factory-produced goods from Aliexpress or Amazon. This damages Etsy's reputation as a handmade marketplace, and hurts any shop who is selling handmade goods. Etsy keeps making promises to crack down on resellers on their platform, yet the problem persists year after year.

What is the new Etsy policy 2022? ›

According to the changes made to Etsy seller fees in April 2022, each time you sell something on Etsy, you have to pay a transaction fee of 6.5% of the total sales price.

How long does an Etsy ban last? ›

The consequence is immediate suspension for 30 days. Your shop will be closed during the suspension period. When the shop reopens, Etsy will permanently ban your selling privileges on Etsy. You can't recover selling privileges after being banned by Etsy forever.

Does Etsy tell you who reported you? ›

Reporting and privacy

Reporting items or shops is a confidential process. The reported member won't know who reported them.

Does Etsy case hurt the seller? ›

Yes, opening a case on Etsy does hurt the seller.

Even if the seller wins the case and doesn't have to issue a refund, they'll still be penalized on Etsy for having an open case. Etsy states that cases opened against a shop in the past four months can hurt the shop's visibility in searches.

Do small business owners get audited? ›

Sometimes it's chance, but often, certain financial practices can lead to a small business IRS audit. Learn about six small business audit triggers and how you can try to reduce your chances of getting audited.

What is hobby income limit? ›

If you're under 65 and filing as an individual, you must declare your hobby earnings if they total $12,400 or more when combined with your other income. If you're married and filing jointly, the threshold is $24,800 if both spouses are under 65.

Can I write off Etsy fees? ›

Etsy Fees: You can deduct the fees that Etsy charges to use their marketplace, including costs for publishing a listing and the transaction fee that they charge on each of your sales.

How much should I set aside for taxes from Etsy sales? ›

Taxes You Will Need To File As A Seller On Etsy

Self-employment tax equals about 15.3% of your net earnings. To quickly figure out how much you'll owe, use our 1099 tax calculator.

How much money can you make on Etsy before taxes? ›

Since Etsy processes credit card payments for sellers through Etsy Payments, we're required to provide a 1099-K form if you're a US seller, and reached more than $20,000 USD in gross sales and more than 200 transactions in 2022, or a met a threshold for your state.

What states does Etsy not collect taxes for? ›

Etsy automatically collects and remits state sales tax for many but not all orders. So far, Etsy has started collecting sales tax for 45 states and the District of Columbia. The only states that don't currently levy a sales tax are Alaska, Delaware, Montana, New Hampshire, and Oregon.

Can I sell on Etsy without a business license? ›

Etsy doesn't require sellers to have a business license to sell products via its platform. However, the state, county, and local municipality where you've formed your business may require you to hold licenses and permits to operate your company legally.

How much does the average person make selling on Etsy? ›

How much does the average person make on Etsy per month? Earnings ranged from $500/month to over $10,000/month. The majority of sellers that responded earned between $1,000-$5,000/month.

Is Etsy worth the trouble? ›

Selling on Etsy is worth it because it's the easiest way to set up an eCommerce store dedicated to handmade arts and crafts and vintage goods. Etsy is quick to set up and learn. It's a low-cost, low-risk sales platform that rewards volume sellers with low prices, and 5-star reviews.

How many views do you need for first Etsy sale? ›

It takes on average 100 views to make 1 sale. If you want to make $2000 and you sell a $42 product, you'll need to get 4600 views to your shop.

Are there Etsy millionaires? ›

Alicia Shaffer, often referred to as Etsy's richest seller, made numerous headlines for raking in $70,000 a month in sales. In 2015, her Etsy shop, Three Bird Nest, earned nearly $1 million on the platform.

What is the most serious challenge facing Etsy? ›

Etsy is facing challenges as it never has before. The artisan marketplace's shares have declined 43% since the company went public in April.
Here are the biggest issues plaguing the brand.
  1. Etsy is losing money. ...
  2. Amazon is building a huge competitor. ...
  3. Counterfeit goods are running rampant.
May 27, 2015

What is the most searched term on Etsy? ›

The most popular keywords on Etsy in 2022 for that special someone
  • gifts.
  • graduation gifts.
  • indian gift.
  • personalised gift.
  • personalized gift.
  • personalized gifts for mom.
  • self care gift box.
  • teacher gifts.
Jul 20, 2022

Why are people not buying from Etsy? ›

People don't have enough money to shop on Etsy

And it doesn't mean that products are overpriced. The price might be absolutely right, but sometimes we just can't afford another cute thing from Etsy. These are the most common reasons why buyers might get away from an Etsy shop.

Why is Etsy sales dropping? ›

A drop in visits to your shop or sales can mean any number of things, such as increased competition, changing trends, a shift in purchasing behavior, and more.

Is Etsy worth it in 2022? ›

The short answer is yes, selling on Etsy is totally worth it in 2022! The long answer is that starting an Etsy shop is not easy work but if optimized correctly with the right products, SEO, and marketing, you can see massive results especially in 2022. Etsy is all the talk among e-commerce experts for good reason!

What is the Etsy controversy? ›

The controversy started in early April after Kristi Cassidy, one of the leaders of the Indie Sellers Guild, started an online petition drawing attention to a variety of issues she says sellers are facing on the platform, including the company's increase in transaction fees.

What should you avoid on Etsy? ›

Illegal items, items that promote illegal activity, and stolen items are not allowed on Etsy. Neither are certain items that are subject to complex legal regulations or registration systems. We require sellers to follow all applicable laws for the items they list.

Is it hard to get sells on Etsy? ›

Your first sale is ALWAYS the hardest to make! This is especially true on Etsy, because Etsy shoppers rely greatly on reviews. If your shop doesn't have any reviews, then it makes it much harder to get potential buyers to trust you.

What is the slowest month on Etsy? ›

I think, though, it is safe to say that you are ending the "3 month slump" that is typically the SLOWEST on etsy (June - Aug) and heading toward some of the most PROFITABLE months on etsy.

Are people still buying on Etsy? ›

Etsy is an online marketplace for vintage and handmade goods from around the globe. Founded as a small Brooklyn shop in 2005, Etsy has grown into a global ecommerce hub with over 45 million items for sale. In 2021, it counted over 7.5 million sellers and 96.3 million active buyers worldwide.


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