Following a record-breaking fourth quarter of 2021, Etsy announced today that it is increasing seller transaction fees from 5% to 6.5 percent. The company stated in a report to investors today that the 30% hike will take effect on April 11th. When a seller makes a sale on Etsy, the transaction fee is a percentage of the entire order amount.
The increased cost to sellers comes on the heels of Etsy reporting fourth-quarter revenue of $717.1 million, which the firm attributes to a robust holiday shopping season. Etsy added ten million new buyers in the fourth quarter of 2021, boosting the total to a record 90 million active shoppers. Following the announcement to investors, stock prices rose more than 15% after market closing on Thursday.
