Our Etsy Profit Calculator is designed with one goal in mind - maximizing your profits! It provides you essential info on the most profitable products, so you can make sure that all of your hard work earns its reward. 

Why is it important to identify profitable products?

Everyone wants to know in advance what’s going to be your “take home” amount from each sale. Of course, there are many different factors and costs that you need to consider when you make a sale, and it is more important to focus on your profit than on your total revenue.

Why do a lot of Etsy sellers struggle with being profitable?

A lot of sellers make a lot of sales, but at the end of the month, they are in the negative or with only few dollars left. This happens because many of them only focus on getting the sales and how much their totals sales were, without even taking into account the other costs to make the product, Etsy fees, promotions, and the overheads included with running the business.

Now, we’re going to discuss the different types of costs that you need to be aware of and track in order to have a clear understanding of your profitability.

1) There are those costs associated directly with the product itself

Product costs includes everything that you pay for to create the product. It is also easy to calculate your costs if you are buying a product and then reselling it on Etsy or modifying it before selling it. This is applicable if you’re selling supplies and you’re repackaging them. Just make sure to include all your costs including shipping them to your place of business.

Of course, creating a product also takes time, and you need to include that as well in your cost. It doesn’t matter if you’re the only one whose creating the products, or if you are outsourcing it to someone else, you still need to account for the labor cost it takes. Think about how long it takes you to create one piece, and how much your time is worth to come up with your labor cost.

Finally, one important thing that gets overlooked is the packaging costs. This includes any material you use to put the product in before shipping it…such as the labels, wrappers, and so on. 

2) We also have different fees that Etsy charges

There are 3 important fees that you need to know about when selling on Etsy and they apply to each product or order:

- Listing Fees, which are $0.2 for each item that you list on your store, regardless if it sells or not. Think of it as the fees you pay to have your products seen by the shoppers.
- Transaction Fees, which are currently at 6.5% for each transaction or order.
- Payment processing fees, which can vary depending on where the buyer is and how they paid (credit card or PayPal). Typically, they are about 3-5%

3) Shipping costs associated with the order

Here, we will need to consider if you are selling physical products. There are few things to consider here, but the most important are:

- Is where you are willing to ship your orders
- How heavy or bulky your items are.

It is hard to estimate how much shipping you will end up paying to have the products delivered to your customers, especially if you want to offer free shipping and build that cost into the product. However, you can get an estimated shipping costs from the post office, and use the highest amount to estimate your shipping fees. It is a good idea to offer free shipping where it makes sense, such as your country or region, but once you start shipping internationally and the price gets higher, it makes more sense to charge for it.

Also, when estimating the shipping, take into account how you package your product as packaging can increase the cost of shipping. The best thing to do is take a packaged product to your local post office and get some estimates on costs directly from them.

4) Finally there are other miscellaneous costs as well

Other costs that you need to consider include the advertising fees if you decide to run ads. Also, depending on where you are, there may be some taxes involved with your business, so make sure to check with an accountant regarding these costs.

Finally, if you decide to run any promotions or discounts, these add up to your costs and can lower your profit.

Here is a quick tutorial on how to use our Etsy Profit Calculator 

In case you need further help, feel free to contact us through hello@everbee.io