I feel somewhat prepared to deal with the financial responsibilities of Etsy because of my experience with ebay. However, there are a few things that differ. With Ebay, I must try to either get items cheaper because my margin of profit must be higher. Ebay takes nearly nine percent of each item's selling price. For Etsy, this percentage is much lower. Therefore, I have marked my items up about 60% of their cost to produce, not factoring the work time into this cost.
ecause of this difference in selling fees, I plan to use more of the promotional resources Etsy offers. I have scheduled for one of my banks to be a front page listing. I think this will be a valuable way to attract customers to my store.
I do plan to keep some of the elements of financial management I already use. While I will be using my same paypal address for Etsy, I plan to use the paypal card to purchase all my Etsy supplies. Using this debit card rewards you with 1% cash back for your purchases. While not a lot, this little bit helps. I have chosen not to get a different paypal simply because I like simplicity. Because I am not yet selling a lot on Etsy, having two addresses could become confusing. However, I may consider this if the Etsy store is successful.
