ETSY How-To: Money in and Money Out

 

When running a business on ETSY (or any online venue, personal website, or home parties) it’s very important to keep track of money in and money out.  It’s nearly impossible to gauge how well your business is doing without keeping track of the necessary profits and expenditures.  Once you are tracking the in and out of money it can be easier to find budget limits, and determine where to cut costs from and where to put more money in.  If you aren’t already I would get an accounting software (Quickbooks is one of the best) and put it all your information; inventory, receipts, bills, advertising costs, and sales.  It’s also a great program to use to keep track of inventory pricing such as cost, wholesale price, and retail price of items you have for sale.

Here are some quick tips on how to save money once you gauge where your business stands with money in and money out:

* Have a Set ETSY Bill.  Every month determine the exact amount you want to spend on ETSY for listing new items and renewing. Remember if you want to only spend 60.00 a month don’t set your budget at 60.00 because you still have to account for items being sold and your commission costs to ETSY for those items being sold. If you sold $350.00 in merchandise on ETSY that’s $12.25 that will also be on your bill Try to stay as close to your budget as possible.

* Research Supply Prices.  Always remember this: You are not married to your supplier.  It’s okay to look for better pricing on items.  You may get lucky and your current supplier may price match the other supplier, but they won’t if you don’t ask.

* Dedicate to FREE Promotion.  There is no cheaper advertising than free advertising, and there are many ways you can do that.  I am currently working on a Facebook fan page, and it’s free.

* Cut Unreasonable Practices that Bleeding Money.  I was offering free shipping for a long time but with the cost of shipping going up and the cost of my mailers going up it was no longer practical for me. I still have very good shipping costs ($1.99 US, $2.99 international) but it was unreasonable on my already lower priced items to offer free shipping.

Hope this helps you out a little with your pursuit of making more profit in 2011.

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5 Comments

  1. April 26, 2011 at 4:52 pm

    I keep my shipping at 1.95 for most items, both nationally and internationally. I think it helps because having the second item be a low cost (0.50 for me) it encourages buyers to buy multiples to save on shipping. I know as a frequent Etsy buyer myself, I almost always buy more than one item from a single shop for this very reason.

  2. Anastasia said,

    May 19, 2011 at 6:49 pm

    How can you ship so cheap? I just tried to ship the soap i sold on etsy to new york (and i’m in new york too!) and the cheapest rate was 5-6 dollars!!!
    HELP PLEASE

  3. Rick said,

    July 28, 2011 at 10:35 pm

    I agree with Anastasia. Is shipping a loss-leader for Etsy shops?

  4. Victoria L said,

    January 2, 2012 at 4:14 am

    That is cheap. Do you opt for delivery confirmation or insurance when you ship?

  5. amiehill said,

    May 3, 2012 at 5:19 pm

    Found this really helpful, cheers!


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