The million dollar question that you may have been asking yourself… “will people still buy my products if I increase my Etsy prices.” I can honestly say, it’s been a question in my mind numerous times throughout the years of owning an Etsy shop. The answer every single time is yes, they will, and here’s why. The businesses that withstand the test of time adapt to increases in their costs. They add so much value for their customers that those customers become raving fans. Successful business owners compensate themselves financially, which allows them to keep going with enthusiasm and reward. Don’t be afraid to increase your Etsy prices!

Today, we are going to cover the three reasons why I’m increasing my Etsy prices and why you should consider increasing yours as well. 

If you are searching for a way to understand Etsy’s fees and how they impact your business I have created a “done for you,” spreadsheet. You can use this tool to feel good about your pricing, get your hands on it here.

Postal Service Price Increases

At the beginning of each year, most major postal services make changes to their shipping rates. The changes may seem minimal; however, it’s worth taking a look and adjusting your prices accordingly. 

If you use Etsy shipping labels, or for US sellers who use calculated shipping, the changes are accounted for as soon as they go in to effect. 

In 2021 we saw the following changes made by the major postal services around the globe:

 

Postal Carrier	Shipping Type	Price Change
FedEx	Express	+ 4.9%
	Ground	+ 4.9%
Canada Post	Domestic	+ 3.9%
	International	+ 1%
USPS	First Class	+ 6.5%
	Priority	+ 3.5%
	Priority Express	+ 1.2%
	First Class International	+ 4.8%
	Priority International	+ 5.1%
	Priority Express International	+ 3.6%
	1st Class Flat & Letters	No Change
Royal Mail	1st Class Stamp	+ 9p
	2nd Class Stamp	+ 1p
Australia	Domestic	+ 5%

For me, these changes meant an increase to my shipping costs. In my shop I use USPS 1st class and offer a priority upgrade. I offer free shipping, and wanted to maintain doing that, so I had to consider increasing my prices to cover the additional shipping frees. Last year the popular item in my shop shipped for $4.14 domestically. With the 6.5% increase the same items now ships for $4.42. I must consider the 38c increase to maintain the same profit margin. 

Make sure you are aware of the increase your shipping carrier made. Take a look at how much you should increase your prices due to the increase in shipping costs. 

When you increase your Etsy prices you can increase your value

Have you been creating for a while… have you been thinking about ways to improve your product or customer experience? Are you afraid your changes will cut too much in to your profit? Have you told yourself, “no-one will ever buy if it costs that much.” Well, here’s what you should do. Make the change, spend more on the quality material, add in the elevated customer experience.

You have to remember that you aren’t selling at your local big box store like K-Mart, Asda, or even Target. People shop on Etsy to find something unique, they want an experience and they are willing to pay for it. Quite often in this market, a higher price means higher value and that’s what Etsy shoppers want. Increase your value and watch what people are saying in your reviews. You’ll be affirmed when you have raving fans leaving reviews about, “the premium quality,” or “the lovely packaging,” or “the beautiful thank you card.” 

When you increase your Etsy prices you have the ability to run promotions & sales

Have you wanted to run a sale, but are held back knowing that any sale will cut into your already low profit? When you increase your price, you have the ability to run sales and promotions. There’s many benefits to running a sale on Etsy. The benefit I love the most is the notifications Etsy pushes out when you run a sale. When you put an item on sale, shoppers who have favorited that item or your shop get notified in their updates section that you are having a sale! This brings your listings to the forefront of a shopper’s mind. 

If you are new to running promotions, or want a new strategy, consider running a sale that incentives your customer to purchase more to receive a discount. My personal favorite is to offer a discount when a customer purchases a certain quantity or spends a certain amount. I often run a sale that includes, “buy 3 items get 15% off.” This increases my orders because it incentives the customer to purchase more, when they do, they get a discount. With this strategy, you win and the customer wins. 

Managing your time as an Etsy seller

Your time is precious, this thing called entrepreneurship, owning your own business shouldn’t be taken lightly. You work so hard to run your business, it needs to be worth your precious time. Time is everything, if you are looking to master time management as an Etsy seller, check out this blog post. Once you allow the world to purchase your craft it is no longer a hobby, it’s a business that can be extremely profitable. Price your items so your business is worth the precious time you put in.

Allow yourself to increase prices due to the increase in shipping costs. Increase your prices to allow you to up the value of your products and customer experience. Allow yourself to increase your prices so you have the ability to run promotions and offer discounts when you like. Remember, do not listen to the voice in your head that tells you, “no-one will buy if I increase my prices.” Increase your price and your value, you’ll have raving fans, leaving positive reviews, and spreading the word about your products. You’ll be rewarding yourself financially for the work you are putting in and you’ll have the desire to keep creating and owning a business for years to come. With a strategy like this you’ll grow and profit beyond your wildest dreams.