- Supplier -
- Fees -
- Offsite Ads -
- Ads and other -
- You keep -
| Break-even price | - |
| Price for a 30% margin | - |
The ad takes more than the three fees do
Printful's bill for the blank and the shipping comes to about $18, and Etsy's three regular fees take under $3 of a $24.99 order. An Offsite Ad that brought the order in takes another $3.75, and the three fees look small next to it. After the fees and the ad's cut, the shirt leaves you $0.78.
It's 15% of the whole order
Etsy works the cut on the order total, the item price plus whatever you charge for shipping, with sales tax left out. Under $10,000 of sales in a year it's 15%, and once a shop has crossed that line it drops to 12% and the ads stop being optional. It's capped at $100 on any one order, which on a shirt never comes into it. The three regular fees still come off as well. Put 12 in the rate instead and the shirt keeps $1.53 of the order.
Don't set the price for the ad orders
A price that still makes 30% on an ad order is $39.76 for this shirt, and that's a hard sell for a tee. Most of your orders don't come through an ad, so the price that makes sense is set for the ones that don't. Treat the ad's cut as a cost of the orders it brings and see whether what's left is worth having. The Etsy fee calculator has the three regular fees on their own if you want them without the ad. On this shirt the ad orders sit close to break-even, and that's fine as long as they're a minority of what sells.
