 But how exactly do Etsy selling fees work? First, we have a listing fee, which as I explained, costs 20 cents. So for every time you wanna add a listing to your store, there are no store subscriptions like on eBay where you'll have to purchase a subscription so that you can use that to add more listings. Here, there are no subscriptions. You can cancel anytime, but you will pay 20 cents for every time you list a product for sale on Etsy. This means that you're probably better off not listing 2,000 products to test all at once, but you will start slowly see what Etsy's customers like and then add more products similar to those so that you'll have a higher chance of selling and make more and more profit and you won't even have to worry about those 20 cent expenses. Now, the listing renews every four months or every time you make a sale. So if you sold a product, it's going to relist itself and you're gonna pay another 20 cents or if four months have passed and you have the auto listing renewal set up in your settings, then the listing will renew itself automatically every four months and you will pay another 20 cents. And that's it when it comes to listing fees. Now, when you make a sale, then Etsy's gonna shave off 6.5%, so 6.5% from the transaction price, Etsy's gonna take that as a transaction fee. Now, besides the transaction fee, there's also a payment processing fee because Etsy is also gonna help you with the payments. There's an Etsy payment solution. I'm gonna talk about that soon. And in any case, depending on where you live around the world, that's usually gonna come around 3 to 4.5% in addition to the 6.5% plus another about fixed 30 cents off of the transaction fee. So your fee is totaled to around 10 to 11% from the transaction price plus another 30 cents. And of course you have to take more fees on top of that like when you're purchasing the product from your supplier and let's say the product costs $20, you're probably gonna also pay sales tax to that supplier. So it's gonna be $20 plus another about 10% on that plus your 6.5 plus 3.5% from the transaction fee and that added 30 cents. So if you ask me, I would make my break even on Etsy around 15% or 20% because we also wanna account for the tax that we're gonna pay our suppliers. And on top of that, you're gonna add your added profit. Now, in most cases, you're not really gonna reach a break even of 20%. I went really far on that one, but I like doing that because it's easy to make drop-shipping sales, easy to make substantial profits doing it. And I've been doing it for over six years now and it's always better to take more into consideration into your break even. And in the worst case, if you really had to pay all those expenses, you'll still be in the very profitable zone. Now, besides the transaction and payment processing fees, we also have Etsy ad fees and that's only for running ads, but we'll also run ads automatically without us even knowing it. So pay attention closely to this one. So your Etsy ad fees is only if you want to enable Etsy ads. So running ads on your products telling Etsy, hey, run ads on these products, take my money and get me some sales. So here on the Etsy sales manager dashboard, you see that we have the marketing section and here I can run Etsy ads. Reach more buyers with Etsy ads. So I would just click on get started and start running ads on my products, have Etsy promote it so that more buyers will be able to see it. And of course, I'll get more clicks and more sales this way. Of course, that will come with a budget and we're not gonna talk much about that in this video, only that that's one part of your fees if you wanna run ads. But besides that, there's also ads that Etsy is going to run for you automatically, even if you didn't know it. And that's why watching this video is gonna be so valuable to you. There's this thing called offsite ad fees. So Etsy will advertise your listings on places outside of Etsy like search engines like Google and Bing. And when a customer makes a purchase by clicking on one of those offsite ads, an additional fee of 15% will apply to your transaction fees. Now this happens automatically to all sellers on Etsy who sold over $10,000 in revenue in sales in the last year. So if anytime in the past 365 days, you made over $10,000 in Etsy sales and you will, you're going to automatically enroll in Etsy's offsite ads. Now you can always opt out of it. So all you have to do is reach out to Etsy's customer service, let them know that you would like to opt out of offsite ads and they will do so for you. But that's a little thing that Etsy does that most people don't actually know about it. And then they end up paying 15% plus 6.5% plus 4.5% and many who have a low profit margin end up seeing no profits at all from those sales that came from offsite ads. So take that into consideration after you pass $10,000 in sales in a given calendar year. And besides that, you also have the Etsy Plus program which is completely optional which costs $10 a month. It'll give you 15 listing credits which costs around $3 and you'll get $5 more in Etsy ad credits plus some more tools and resources that Etsy will give the Etsy Plus program members. I don't think it's worth it at this point, especially not for drop shippers but if you want it, that's how much it's going to cost you. Okay, now that we understand Etsy's selling fees, let's understand drop shipping and how it all comes together. Then I'll take you to the Etsy shop manager and show you step-by-step every menu that you have under your seller account. Quick reminder, if you want access to this Etsy drop shipping cheat sheet with everything that I'm going over in this video, all of the resources, all the tools, all the links that I still haven't shared with you yet. All you have to do is comment right below this video, hashtag Etsy 2023. Let me know what you learned from this video, what is your top takeaway and this cheat sheet is yours up for grabs.