Etsy is now generating internal revenue from its sellers without raising the transaction fee. The company now offers seller service tools and advertising option. Now sellers belonging to etsy can advertise their products within the website and it will be charged. Similarly the company is also introducing a set of inventory management tools for purchase. They are direct check out, shipping labels and promoted listing (advertisement).
The listing fee remains unchanged at 20 cent and transaction fee at 3.5 percent. Earlier sells relied on BETSI an application for etsy sellers. It is a bulk listing and editing tool. The app provides customer care and one-on-one support too. Maintaining a mere 50 listing in ecommerce site is a time consuming task but the app made it easy. However with etsy monetizing its tools they have banned the usage of BETSI. The company stated that the app violated the terms and conditions of the website.
This new stream of revenue accounts for half of the money etsy is earning. The promoted listing costs $2.3 for a click which most sellers feel is not feasible for low cost products and not appropriate even for a costly item.
Many sellers feel that charging for inventory tools is out-of-line as it is some of the basic things the website should offer as a part of listing fee. However one has to wait and watch what services the company will be offering and how affordable they are.