Etsy, the handmade and vintage marketplace that lets anyone set up their own online shop, has finally introduced its own, direct checkout. Prior to this, buyers were directed to a third party payment processor, such as Paypal.
Considering that the handmade giant is processing over 2 million items a month, you’d think that the site would have shifted gears a lot earlier. To give you a glimpse at the sheer mass of transations flowing through the independent shops, know that the Etsy community sold $46.4 million of goods this past September alone.
As far as fees go, direct checkout will cost a 3% of the item plus a $0.25 USD payment processing fee. Originally, Etsy charged a fixed transaction fee of 3.5% of the item price, so it’s nice to see a slight drop that will be noticeable on costlier items.
Update: According to Etsy, the fee process operates differently. “When using direct checkout as a payment method, Etsy will charge a payment processing fee of 3% + $0.25 per transaction. This amount will be applied to the total sale price including shipping and sales tax. It will also be in addition to the existing transaction fee (the 3.5%). The cost of using Etsy’s direct checkout is comparable to what Paypal charges for their payment services.”
Beginning today, we are rolling out direct checkout for US-based sellers. This is a new and optional way for shop owners to accept and manage credit card payments from buyers directly on Etsy.
Direct checkout is currently enabled for a limited number of shops, including the EtsyStore. Direct checkout, in addition to simplifying payment, lays the groundwork for many more payment and checkout improvements, including Etsy-wide gift cards and enhanced international payment options.
Etsy has quickly become the eBay for artistic makers, and it’s a good sign that it is taking over its transactions, since this will add a whole new level of professionalism to the online stores. You can see the full announcement here.