TEE #026 Managing Your Etsy Finances Just Got EasierSep 16, 2023
Read time: 4 minutes
Etsy sellers in the UK recently got some tough news - Royal Mail is increasing first class stamp prices by 14% starting October 2nd, 2023. The cost of mailing a standard letter will rise from £1.10 to £1.25.
This price hike is going to directly impact Etsy shops' bottom lines. As costs for postage and materials continue to rise, understanding your profit margins becomes even more critical for your business's success.
Why Profitability Matters for Your Etsy Shop
In an ideal world, every item you sold would be 100% profit. But between material expenses, labour time, and fees, your true profit is likely much less. This is why calculating product profitability is so important.
Product profitability is determined by taking an item's sale price and subtracting all associated costs, including:
- Labour time to make the item
- Etsy listing fees
- Payment processing fees
- Shipping & postage costs
The remainder is your net profit. Doing this for each product shows you which items are most lucrative so you can adjust your production and promotion accordingly.
Without understanding profitability, it’s easy to fall into the trap of under-pricing your products and undervaluing your time. Tracking your net profit empowers you to run your Etsy shop sustainably.
Introducing the Etsy Income & Expense Tracker
To help Etsy sellers better understand their shop's finances, I created the Etsy Income and Expense Tracker - an all-in-one Google Sheet template for managing your key metrics.
This tracker provides:
- An at-a-glance dashboard showing your revenue, orders, profit, and other KPIs
- Input fields to log your monthly Etsy pay-outs and expenses
- Automatic calculation of year-to-date earnings
- Dedicated section to calculate product profitability
- Graphs and charts to visualize trends over time
With the tracker, gone are the days of scattered Excel sheets and receipts. Just enter the summarised data from your Etsy payment account and update with your latest figures each month. The template does the number crunching for you so you gain financial clarity.
The trackers benefits include:
- Streamlining your finances in one place
- Understanding which products make you the most money
- Identifying seasonal sales trends
- Making data-driven decisions about your shop
- Gaining insight into the health of your Etsy business
Take control of your shop's finances, simplify accounting, and unlock growth potential with this complete Etsy income and expense management system.
Purchase your tracker here for only £20 (Pssst you can write off this purchase as a business expense!):
The Key to Etsy Success
Regardless of your shop's size, getting a handle on your profit and costs is essential for sustainability. The Etsy Income and Expense Tracker makes it easy to get organised so you can pursue success on your own terms.
Knowing your numbers inside and out empowers you to adjust product pricing, manage inventory, reduce overhead, and ultimately increase your bottom line. Don't let changing costs trip up your Etsy shop - take control with financial clarity.
Whenever you're ready, there are 3 ways I can help you:
If you're still looking for traction in your Etsy business, I'd recommend starting with one of the following:
1. → My Free Etsy Workshop: Perfect for you if you are just starting out on Etsy. Learn how you can turn your creative passions into cash to earn your first £1000 on Etsy.
2. → The Etsy Shop Blueprint Coaching Package: If you're serious about succeeding on Etsy, my Etsy Shop Blueprint coaching package is the perfect investment for you. With my expert guidance and actionable strategies via LIVE monthly coaching, you'll gain the skills and knowledge you need to build a profitable and sustainable online business. Instant access to both The Etsy Shop Blueprint Course PLUS the bonus course AI Magic: Skyrocket Your Etsy Profits with ChatGPT. Join hundreds of other Etsy Sellers!
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