Asking Even: Adding Extras to Etsy Listings and Charging for Them?

Hi Even,

When you charge something extra, such as shipping with insurance and making a chain longer, how can you issue an adjusted invoice, and how can the customer pay the extra?

Thank you!

This is a great question as Etsy's interface doesn't make it straightforward.  You do have a few options though and you can choose among them on a case by case basis, or stick to one that is the best balance for you and your customers.  The important factor is to communicate clearly and efficiently with your customer.  This comes from knowing what your options, making an informed choice, and then using your listings and policies page to state your method(s) to your buyers.

First, there are a few points from the Etsy Terms of Use (TOU--the rules!) that you should consider:

• If the seller offers different sizes or styles that affect the price, the seller must make a separate listing for each item.
• All listings on Etsy must be available for purchase. 
• A custom order listing must be listed for purchase with a set price.

Here's what those rules mean when we look at making listing and shipping options:

Listing Options:

Custom Listings

The item can be entirely custom, meaning made to order, even if it is similar or exactly the same as other listings.  In this case, you would list each item and its variations separately and use the "made to order" feature when listing the timeframe the item is made.

Main Listings and Add-Ons

The item can be listed in the basic form with add-ons possible in other listings.  In the example of additional length in a necklace chain, one listing would be your necklace and another listing would be the added chain.  The downside here is that technically the added chain length is available for purchase! Here's an example of such a listing. 

Listings with no Price Change

You can list the item in it's most expensive version (longest chain) and then ask buyers to note the requested chain length in the "notes to seller".  In this case, you are not changing the price when they request a shorter chain.  You are allowed by Etsy to give choices within one listing, as long as the choices don't affect the selling price.  To keep yourself in business, the best way to do this is to list at the highest price option.

Reserved Listings

You can create a reserved listing for a particular buyer after using the Etsy messaging (convo) system to communicate exactly what the item is and the shipping price.  This is something that you can explain in each listing and also make sure that the "request custom item" link shows on your shop page (under Shop Settings < Options).  

Making sure that the "request custom item" link shows in your shop sidebar.

The upside here is that you don't need to try to cover every option, you just make the listing once you and the buyer have agreed.  The downside is that it takes messaging back and forth and that is a barrier for some buyers.  Be sure to protect your buyer's confidentiality when making a reserved listing: don't reveal their real name, address, or other sensitive info in the item listing.

Reserved Listings with Edits

This option is one that is great if your buyers are pretty skilled at online shopping.  You would list your standard version, but at the top of the description make a statement like "please message me before purchase if you would like custom options: chain length, expedited shipping, and tracking."  Then when a buyer messages you, you'll edit the price and details before they purchase.  This saves the step of extra invoices and extra listings.  You may find  buyers who like this because they can communicate with you prior to purchase.  I think if you are friendly and mention that you want to know your buyers, this can work very well.  

Shipping Options:

More shipping options features have been long requested.  I'll walk through the current choices below.  If it's something you'd like to be on the cutting edge with, go ahead and join the testing team for new features.  You can also just read through the team's forum to get an idea of what is coming up.

Adjusting the Invoice

Sellers may list shipping choices or upgrades and the price in the item listing description.  Usually the default shipping is the lowest price.  Sellers then say to note requested upgrades in the 'notes to seller' box while checking out and the seller will "adjust the invoice".  This means that you, as the seller, will have to send an additional paypal invoice to the buyer for a few dollars difference (the cost of the upgrade).  This is okay with Etsy because they are not charging you a percentage on your shipping, so you can change that after the sale.  It's not really convenient if you have a high volume of sales and are only using paypal. It is more convenient if you are using other forms of payment (like money order or google checkout) where you would be giving the buyer a total price after they checkout on Etsy anyway.  If you want to send an invoice via Paypal for just the extra shipping, here's how.  There isn't a way to invoice for extra shipping costs with Etsy Direct Checkout presently.

Start with the Highest Price Option

Another similar method is to list the item with the higher priced shipping option as the default and then refund the buyer a few dollars if they choose to downgrade the shipping.  You would also describe this in your listing.  For example, I charge $13 to ship priority mail to international destinations.  This gives my buyers tracking and faster service.  Canadian buyers can choose to leave me a note that they would just like basic shipping and it's only $5.  I just refund them the difference.  It saves one step of the back and forth.  It's worth considering if your buyers would be put off by a higher price.  I think around winter holidays, it's a good idea to list all items with priority shipping and tracking and then if a buyer wants to reject that choice, they may do so.

This is how I explain shipping choices via the "Start with the Highest Price Option"

Shipping Options as Item Listings

It isn't okay with Etsy's TOUs to list shipping options as actual item listings.  This is because you couldn't sell just shipping as a stand alone item.  A search of "shipping upgrade" will illustrate how many people don't understand this--please don't be one of them!

Insurance and Tracking Options

You can treat insurance and tracking as part of your shipping methods as described above.  Basically decide whether these are an 'add on' or 'default' for your shop and buyers.

Thanks for your great question and please feel free to elaborate, share advice, and ask more in the comments below!  Ask your own questions via askingeven@gmail.com 

 ~Even

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If you're an Etsy seller in the San Francisco Bay Area, contact Katy or Steph about joining SFEtsy!

Asking Even... What's the difference between Paypal, Square, and Etsy direct checkout?

Thanks so much for asking questions via askingeven@gmail.com!  Each Thursday I'll be posting my research and ideas based on your requests.  Business and personal topics are welcome and I also appreciate your advice, stories, and resource tips.  You will be anonymous unless you ask otherwise, in which case, I'll happily link to your shop or homepage as you direct!  Please enjoy this inaugural post of "Asking Even" and keep the questions coming!

Etsy has recently rolled out Direct Checkout to all sellers and I've received a few questions about what this means for us in the SF Etsy team.  I'll walk through the pros and cons as well as specific fees associated with each. I've linked the terms of use or help guidelines to each of the titles below--lots more specifics to be found at each site. Please share your experiences in the comments below!

All Etsy sales incur the transaction fee of 3.5% and the listing fee of .20 regardless of checkout method.

Etsy: 3% + .25 per transaction
Advantages: buyer isn't directed off of Etsy.  Refunds will be handled all via Etsy.
Cons: Buyer still has to be a member of Etsy (this is true of all methods). Money earned deposits into your matched account only once you mark item as shipped on Etsy.  Money then deposits on Mondays only.  There isn't an automatically integrated shipping label option (like with Paypal), however you can still use merchant services on Paypal to create labels or sites like Stamps.com.  Etsy will require sellers with 50 or more sales a year to provide "taxpayer-identification" information.  (This is really to follow a new tax law for 2011 that requires sites like Etsy to report sales info for sellers who make more than $20,000 and have more than 200 transactions.  The other checkout methods will probably have some version of this as well.)

Paypal: 2.9% + .30 per transaction
Advantages: Instant availability of balance; many use this to cover shipping.  Shipping services include label printing and payment with USPS for lower cost than the Post Office. Debit card allows access to balance via ATM or for purchases.
Cons: Some buyers are not paypal members. Paypal can be finicky if you change your bank account--set it up well in advance of holiday purchases to avoid problems.

Square: 2.75% no transaction fee.
Advantages: Can take phone orders or actual credit card swipes in person. There is also a "pay with Square" app that allows you to just pay by phone rather than have your card.  I wrote a Tech Tools post about Square awhile back if you want to know more.
Cons: Square works best in person or over the phone.  It isn't a great choice for primary checkout for Etsy sales. Does take up to two business days to deposit your earnings once you set up accounts. Works without the actual Square device, but it's quicker if you have it.

Google Checkout: 2.9% + .30 per transaction (price goes down if you sell over $3000/month)
Advantages: gives buyers who don't use paypal an option to checkout via "other" in your Etsy shop.  Presently, you would need to enable the use of the "other" option as well as specify in listings and shop policies that you want people to use Google Checkout and give them a time deadline for making payment.
Cons: Not as popular as Paypal so it requires sellers to look up if a buyer has paid before shipping. Many sellers report that by allowing the "other" option, buyers can checkout without actually paying and it causes a hassle for both parties.

Each of these services has arrangements for returns and fraud protection.  I'd love to hear if our team members have had great customer service experiences or other helpful tips when it comes to using these services to make returns or buyer and seller protection from fraud.  Coupon codes are also important to some sellers, let us know if you have a favorite for that!






~Even

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If you're an Etsy seller in the San Francisco Bay Area, contact Katy or Steph about joining SFEtsy!