Etsy is an online marketplace that allows individuals to sell their handmade or vintage goods, as well as craft supplies. It’s a great platform for those who want to turn their passion into a business. However, one of the most common questions that Etsy sellers have is “When does Etsy pay me?”
Etsy pays its sellers twice a month, on the 1st and the 16th of each month. If a seller makes a sale between the 2nd and the 15th of the month, they will be paid on the 16th. If they make a sale between the 16th and the end of the month, they will be paid on the 1st of the following month. It’s important to note that Etsy holds funds for 3 days after the first sale, and then makes them available for deposit.
To receive payments, sellers need to sign up for Etsy Payments. With Etsy Payments, buyers can choose from many convenient payment options. No matter how a buyer pays, the funds will go to the seller’s Etsy Payment account. Sellers can manage their deposit schedule by going to Payments Settings and choosing daily, weekly, biweekly, or monthly deposits.
Understanding Etsy Payments
Etsy Payment Account Overview
When a customer makes a purchase on Etsy, the funds go into the seller’s Etsy payment account. This payment account acts as a holding place for all the funds received from sales made on the platform. The seller can then transfer these funds to their bank account according to their deposit schedule.
The Etsy payment account provides sellers with a clear overview of their sales activity and the funds available for deposit. The account dashboard displays the following information:
- Amount Available for Deposit: This shows how much the seller is due to be paid by Etsy for the sales made during the month.
- Amount Held in Reserve: This displays the amount of money that Etsy is holding in reserve. Etsy may hold funds in reserve for a pre-defined period before releasing them to the seller’s account.
- Amount Due: This shows the total amount due for the seller to pay Etsy, such as listing fees, transaction fees, and any other charges.
Etsy’s Payment Policy
Etsy has a clear payment policy that outlines how and when sellers can receive their funds. Sellers can choose from several deposit schedules, ranging from daily to weekly. However, Etsy may place a payment reserve on the seller’s account if certain criteria are met, such as a high rate of refunds or disputes.
It’s important for sellers to keep track of their payment account and ensure that they have enough funds available to cover any fees or charges. Etsy will automatically deduct any fees owed from the seller’s payment account, so it’s important to keep an eye on the amount due and pay it promptly.
In summary, understanding Etsy payments is crucial for any seller looking to make a profit on the platform. By keeping track of their payment account and following Etsy’s payment policy, sellers can ensure that they receive their funds in a timely and efficient manner.
Payment Schedules
Etsy pays its sellers twice a month, on the 1st and 16th of each month. However, depending on the payment size and preference, sellers can choose daily, weekly, biweekly, or monthly deposits.
Daily Payment Option
If a seller chooses the daily payment option, Etsy will deposit the available funds in the seller’s payment account every day. This payment option is ideal for sellers who want to receive their funds quickly and frequently.
Weekly Payment Option
If a seller chooses the weekly payment option, Etsy will deposit the available funds in the seller’s payment account every Monday. This payment option is ideal for sellers who want to receive their funds once a week.
Monthly Payment Option
If a seller chooses the monthly payment option, Etsy will deposit the available funds in the seller’s payment account on the 1st of every month. This payment option is ideal for sellers who want to receive their funds once a month.
It is important to note that the payment schedule chosen by the seller will only affect the frequency of the deposits, and not the timing of the payments. The timing of the payments will depend on when the sales are made.
In conclusion, Etsy offers its sellers multiple payment options to choose from, ensuring that they receive their funds on a schedule that works best for them.
Setting Up Payment Account
To receive payments on Etsy, sellers need to set up their payment account. This is a simple process that can be done in a few easy steps.
Bank Account Requirements
The first step to setting up a payment account is to ensure that the seller has a valid bank account. Etsy requires sellers to have a bank account in their name that is located in one of the countries where Etsy Payments is available. The bank account should be able to accept electronic transfers and should be linked to the seller’s Etsy account.
Verification Process
Once the seller has a valid bank account, they need to verify their identity. This is done by providing Etsy with some personal information, such as their full name, date of birth, and Social Security number (or other tax identification number). Etsy uses this information to verify the seller’s identity and to comply with anti-money laundering regulations.
In some cases, Etsy may also require sellers to provide additional documentation to verify their identity. This may include a copy of a government-issued ID, a recent utility bill, or other documents that prove the seller’s identity and address.
Overall, setting up a payment account on Etsy is a simple process that requires sellers to have a valid bank account and to verify their identity. Once the payment account is set up, sellers can start receiving payments from buyers and can withdraw their funds to their bank account.
Managing Your Earnings
Etsy pays its sellers twice a month, on the 1st and the 16th. If a seller makes a sale between the 2nd and the 15th, they’ll be paid on the 16th. If they make a sale between the 16th and the end of the month, they’ll be paid on the 1st of the following month. Once the payment is made, the seller’s earnings will be available in their Etsy Payment account.
Viewing Your Earnings
To view your earnings, log in to your Etsy account and navigate to the “Shop Manager” section. From there, click on “Finances” and then “Payment account”. This will take you to a page where you can view your payment history, including the status of any pending payments. You can also see your sales, fees, and net earnings.
Adjusting Sale Proceeds
If a seller wants to adjust their sale proceeds, they can do so by navigating to the “Shop Manager” section and clicking on “Finances”. From there, they can click on “Payment account” and then “Adjustments”. Here, they can adjust the sale proceeds by entering a positive or negative amount.
Handling Refunds and Disputes
If a customer requests a refund or there is a dispute, the seller’s earnings may be affected. Etsy will hold the funds until the issue is resolved. Once the issue is resolved, the seller’s earnings will be adjusted accordingly. Sellers can see any pending refunds or disputes in their Payment account.
In conclusion, managing earnings on Etsy is simple and straightforward. Sellers can easily view their earnings, adjust sale proceeds, and handle refunds and disputes through their Payment account.
Fees and Deductions
When selling on Etsy, there are various fees and deductions that sellers should be aware of. These fees are automatically deducted from the funds received from sales. Here are the main fees and deductions that Etsy sellers should know:
Listing Fees
Etsy charges a $0.20 fee for each item listed on the platform. This fee is non-refundable and is charged regardless of whether the item sells or not. However, sellers can renew their listings for an additional $0.20 fee if the item does not sell within the initial four-month listing period.
Transaction Fees
Etsy charges a transaction fee of 5% of the item’s total sale price, which includes the cost of shipping and handling. This fee is deducted from the seller’s funds after a sale is made. For example, if an item sells for $20 and the shipping cost is $5, the total sale price is $25. Etsy will deduct a transaction fee of $1.25 (5% of $25) from the seller’s funds.
Payment Processing Fees
Etsy Payments is the payment processing system used by Etsy. It allows buyers to pay for their purchases using various payment methods, including credit cards, debit cards, and PayPal. Etsy charges a payment processing fee of 3% + $0.25 for each transaction. This fee is deducted from the seller’s funds after a sale is made.
It is important to note that these fees and deductions can add up, so sellers should factor them into their pricing strategy. However, Etsy provides a transparent breakdown of all fees and deductions on the seller’s dashboard, so sellers can keep track of their expenses and earnings.
Troubleshooting Payment Issues
If you are experiencing issues with receiving payments from Etsy, there are a few troubleshooting steps you can take to resolve the problem.
Delayed Payments
If your payment is delayed, it’s possible that your funds aren’t scheduled to deposit yet. You can manage your deposit schedule by going to your Payment Settings. If you didn’t receive a deposit after making a sale with Etsy Payments, check each of the common scenarios below:
- Etsy has not yet released the funds to your bank account.
- Your bank account information is incorrect or incomplete.
- Your bank account is experiencing technical issues.
- The payment is being reviewed by Etsy.
Failed Transactions
If your payment failed during checkout, this can happen for a variety of reasons, including insufficient funds, expired credit cards, or incorrect billing information. To resolve this issue, double-check your payment information and make sure that your credit card is valid and has sufficient funds.
Contacting Etsy Support
If you have tried all of the above steps and are still experiencing payment issues, it’s best to contact Etsy Support. They will be able to assist you in resolving the issue and ensuring that you receive your payment as soon as possible. You can contact Etsy Support by going to the Help section on the Etsy website and submitting a request.