Is Etsy’s New Set-Up Fee a Good Thing?

Word on the street (aka Etsy forums) is that Etsy is now charging a $15USD set-up fee for new shops. Not just for those who are brand new to Etsy, but to those who already have shops and are setting up a second shop. So far, this set-up fee is only being implemented for some shops.

Etsy's official word:

Every day our team works to ensure Etsy is a safe and trusted place to shop—so your extraordinary items can shine. We know every order is an opportunity to make an impression on shoppers, and that’s as important to your business as it is to ours. That’s why in 2024 we’re making updates to the shop onboarding process so we can better protect the amazing marketplace, and community, we’ve built together. 

We’ll be making these changes over the next few months and they’ll only apply to newly created shops. That means your existing shop won’t be affected. But if you decide to open an additional shop, your NEW shop could be subject to these new requirements—even if you’ve been selling on Etsy for a while. 

Here’s a quick look at the updates we’re making.

  1. Adding an enhanced identity check to the shop set-up process: We’ll add a new method of identity check that asks new shop owners to upload a photo ID, like a driver’s license or passport, and take a selfie using their computer or phone. 
  2. Introducing a shop set-up fee to support enhanced security and verification: We’ll start by introducing this fee to some new shops. They’ll pay a one-time set-up fee of $15 before they can open for business. We’ll clearly communicate if the fee applies during the shop set-up process. 
  3. Exploring changes to payment schedules for new shops: We’re looking into changes to the payment schedules for new shops until they have a proven track record of sales on Etsy. These changes may affect how long new shops need to wait for their funds to become available. 

These updates to new-shop onboarding are just one part of our larger focus on keeping Etsy safe and elevating the high-quality items you create and curate. 

My thoughts

While people are freaking out about the set-up fee, I actually think it's a good thing!

A small set-up fee will cut down on the amount of scammers and spammers that get in and set up shops every day.

$15 is a small price to pay for exposure to an audience of nearly 100 million SHOPPERS. That's right, Etsy is home to 91.5 million active buyers in 2024.

Now, I'm not someone who says Etsy is the be all end all. In fact, I think you should create your own website and go from there. I mean, Etsy has already put some payments on hold for newer shops, which doesn't really seem fair. A sale is a sale. And, they shut shops down for no reason, all the time, and you have to fight to get your shop back.

But, the $15 fee? I don't think there's anything wrong with it. Businesses cost money to start. This is part of it.

IF the fee applies to you, you'll be told up front. You can still use an Etsy referral link to get 40 free listings.

Still interested in selling on Etsy? Good. If something like a $15 set-up fee scares you off from building a business, you don't have the grit it takes to survive in online business anyway. 😉

I wrote some other blog posts about Etsy!! Read them here: Learn how to rank on the front page of Etsy and increase your Etsy sales.

See Etsy's full announcement here.

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Is Etsy's New Fee a Good Thing?
Is the new Etsy shop fee a good thing?
Is the new Etsy fee a good thing?

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  1. I’ve dealt with shady characters on Etsy as a customer, so if this helps them keep the platform “clean”, I’m absolutely fine with it. It reminds me of how Craigslist, about 15 years ago, started charging for one or two types of listings, both for monetization and anti-scam reasons. Of course no one wants to start paying for something that has been free for years. But hey, you found out while it was free that it worked really well for you. That’s worth a lot.

    1. That’s how I feel! I figure if it helps weed out the scammers and spammers, I’m supportive!

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