Monday, February 13, 2012

Etsy Direct Checkout Versus Paypal: Fees

Last week Etsy unveiled a new tool to shop owners: Direct Checkout. I believe most sellers have now heard about this, but it you need the basic information before we get started, you can find it here: Etsy Direct CheckOut Forum Link.

I have looked at the forum and the information given by the Etsy Admin. So there were a few things I wanted to compare.

Lets start with fees:

We will still have to pay our listing fees, but Etsy will now charge a fee to process credit cards for us.
 The processing fee is 3% plus $0.25. This is compared to 2.9% plus $0.30 from Paypal.


Direct Checkout


$ 5.00

$ 0.40

$ 0.45

$ 10.00

$ 0.55

$ 0.59

$ 15.00

$ 0.70

$ 0.74

$ 20.00

$ 0.85

$ 0.88

$ 25.00

$ 1.00

$ 1.03

$ 50.00

$ 1.75

$ 1.75

$ 75.00

$ 2.50

$ 2.48

$ 100.00

$ 3.25

$ 3.20

$ 150.00

$ 4.75

$ 4.65

$ 250.00

$ 7.75

$ 7.55

As you can see from the table, it is more cost efficient to use Direct Checkout if your orders are typically under $50.00.

And I will say that from looking at merchant accounts, the fees are quite reasonable for credit card processing.

Tomorrow we will look at another aspect of the Direct Checkout Vs Paypal Debate.


  1. That's cool to see the numbers. I think a lot of sellers are missing the point on this though. It's not really about how much it costs us, because that should be part of your pricing model worked into your overhead. It's about your customer. Your giving people one less obstacle in making a purchase. Honestly, isn't that what selling on Etsy is about? Trying to get people to make those purchases.

  2. You are welcome Elizabeth.

    Just wanted to share my thoughts on this upcoming feature. :)

  3. Madd Dogg,

    Those are questions I wanted to look at later in this discussion. But I agree, giving your customers more methods to buy is a benefit to everyone on Etsy.

  4. Very interesting.Thanks for taking the time out of your busy life to show us this xo

  5. So glad you did the math for us! I hate math :( Thank you!

  6. Yes Eluna, thank you for doing the math for us!!

  7. Great comparison post ... thank you for sharing with us!

  8. I just found out about your post. Thanks for showing the pricing. I have a few questions about the timing of payment and shipping, etc.


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