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Post by stardiamond on Dec 5, 2021 15:52:58 GMT -5
2019 was my first year which was partial. 2020 and 2021 were full years. I have a target for sales and met it my first year. 2020 was the covid year and sales were double my target. This year sales were down 40% and visits were up 35% from 2020. I expect 2022 will be similar to 2021.
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NDK
Cave Dweller 
Member since January 2009
Posts: 9,440
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Post by NDK on Dec 6, 2021 11:07:31 GMT -5
stardiamond So if I understand this correctly, your sales this year are 10% over target?
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Post by stardiamond on Dec 6, 2021 12:37:00 GMT -5
I reached my goal and 10% over is possible. My goal is very modest; $5,000. That more than covers lapidary material, equipment and supplies. The hobby is self funding and I can buy any rocks that will produce a good roi.
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NDK
Cave Dweller
Member since January 2009
Posts: 9,440
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Post by NDK on Dec 6, 2021 20:15:13 GMT -5
That's good to hear. Congratulations!
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gemfeller
Cave Dweller
Member since June 2011
Posts: 4,047 
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Post by gemfeller on Dec 7, 2021 2:03:12 GMT -5
I reached my goal and 10% over is possible. My goal is very modest; $5,000. That more than covers lapidary material, equipment and supplies. The hobby is self funding and I can buy any rocks that will produce a good roi. Is your goal figure gross or net? I'm finding Etsy to be very greedy. I sell well when I post but I'm not very happy with my bottom-line net after Etsy expenses and taxes. |
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Tommy
Administrator 
Member since January 2013
Posts: 12,957
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Post by Tommy on Dec 7, 2021 3:19:27 GMT -5
Is your goal figure gross or net? I'm finding Etsy to be very greedy. I sell well when I post but I'm not very happy with my bottom-line net after Etsy expenses and taxes. It has gotten very bad lately. Back when I was at my peak sales years 2015 thru 2018 it was just a flat 3% on a sale like Paypal but now they have tack on all kinds of fees including shipping for some weird reason when they aren't even involved in it. |
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Post by rmf on Dec 7, 2021 5:09:21 GMT -5
Congrats! on your sales. But I have a question if you don't mind. If you sell a cab on Etsy say $35. How much of that is left after all the fees both etsy and credit card are taken out? I have been contemplating opening an etsy store once I retire next year. I have been looking at what options are best. I sell locally and do repairs for jewelrs but repairs are 90% black onyx and that gets boring.
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Post by stardiamond on Dec 7, 2021 10:48:34 GMT -5
Fees are about 10% and I sell with free shipping. I don't advertise and I pay very little in marketing fees and my net is about $5,000. I think my shop is atypical for Etsy. I don't know how typical it is for a shop that sells cabs. My average order is 2.4 cabs and my average cab sells for $31.75. I buy the shipping labels from Etsy and I don't see any credit card fees.  |
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Post by stardiamond on Dec 7, 2021 13:04:03 GMT -5
I just got an email from Etsy that starting in 2022 the 1099-k thresh hold dropped from $20,000 to $600 so I'll have to pay taxes. I'm retired and in a low tax bracket so I'll have to decide whether record keeping and forms is worth the trouble or just make income equal profit.
I started this topic to illustrate the effect of covid on my sales. I can lower prices and have promotions but don't want to undercut those who sell for income.
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Post by rmf on Dec 7, 2021 13:13:21 GMT -5
stardiamond Thanks for the great info. I am assuming that the transaction fee is for them to run credit cards for you.
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Post by MsAli on Dec 7, 2021 13:38:36 GMT -5
And I thought 200 for the year wasn't bad. I need to start adding some more cabs
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Post by stardiamond on Dec 7, 2021 14:00:21 GMT -5
And I thought 200 for the year wasn't bad. I need to start adding some more cabs I started out very small and added as I made sales. I currently have over 350 items listed. I had $225 in listing fees for the year. I don't advertise but found that having a lot of a particular material gets better placement with the search engines and Etsy. As an example I have 23 Tahoma cabs listed and when doing an etsy search, they are the first 23 that appear. I don't pay to promote or advertise. I made over 2,000 cabs before I attempted to sell and have the time to make more. I don't know the exact numbers but probably 2/3 of the ones I made in the past won't be listed. No point listing an item when there is a lot of competition. |
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Post by oregon on Dec 7, 2021 14:01:36 GMT -5
Fees are about 10% and I sell with free ...
Those numbers on your screenshot are closer to 15%, if you're factoring that into initial purchases. Both Etsy, Ebay have a way of divvying up fees to make them appear much less, same as items priced at 99.99 instead of 100.
I can remember when ebay was $0.25 per listing and that was the only fee... I keep figuring they'll run out of ways to stick more costs to the seller, latest being they force you to let them manage payments so they can hold that revenue for several days before paying out. I think that was how late nite TV commercials (albums, Ronco etc) made money back in the day. I just figure 20% there now, right back to where a traditional auction house commission. I guess that's capitalism, if you're not increasing profit, you're a dying company.
I imagine etsy is on the same trajectory.
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Post by MsAli on Dec 7, 2021 14:13:18 GMT -5
And I thought 200 for the year wasn't bad. I need to start adding some more cabs I started out very small and added as I made sales. I currently have over 350 items listed. I had $225 in listing fees for the year. I don't advertise but found that having a lot of a particular material gets better placement with the search engines and Etsy. As an example I have 23 Tahoma cabs listed and when doing an etsy search, they are the first 23 that appear. I don't pay to promote or advertise. I made over 2,000 cabs before I attempted to sell and have the time to make more. I don't know the exact numbers but probably 2/3 of the ones I made in the past won't be listed. No point listing an item when there is a lot of competition. I've been doing Etsy for years. Also did Ebay and discog. It wasn't until recently I decided to limit my sales to the lapidary business. I along with many others I've been talking too have had a slow year. I also haven't really put any effort into it and I am extremely picky with cabs and therefore won't throw just anything on, so all in all I'm ok with my profit. |
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Post by stardiamond on Dec 7, 2021 16:00:03 GMT -5
Fees are about 10% and I sell with free ... Those numbers on your screenshot are closer to 15%, if you're factoring that into initial purchases. Both Etsy, Ebay have a way of divvying up fees to make them appear much less, same as items priced at 99.99 instead of 100.
I can remember when ebay was $0.25 per listing and that was the only fee... I keep figuring they'll run out of ways to stick more costs to the seller, latest being they force you to let them manage payments so they can hold that revenue for several days before paying out. I think that was how late nite TV commercials (albums, Ronco etc) made money back in the day. I just figure 20% there now, right back to where a traditional auction house commission. I guess that's capitalism, if you're not increasing profit, you're a dying company.
I imagine etsy is on the same trajectory.
I only see about 10%; listing and transaction. I don't consider shipping a fee. I don't see much profit for Etsy on providing the labels. I factor shipping into my listing price. I like Etsy because it is easy to sell. I haven't investigated ebay's selling costs. ebay would be a better place to sell slabs, but most slabs I cut, I keep to make cabs. |
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Tommy
Administrator
Member since January 2013
Posts: 12,957
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Post by Tommy on Dec 8, 2021 13:59:59 GMT -5
I just got an email from Etsy that starting in 2022 the 1099-k thresh hold dropped from $20,000 to $600 Just for clarification this is not just an Etsy thing, the FEDERAL 1099-k threshold was lowered to $600 by the current government, and it also affects Ebay and others. It will be interesting to see the effect on Etsy as many people think they have already lost their soul as the shift to large mass produced garbage sellers has been in full effect for years. I'm betting that the governments actions are going to have a huge impact on Etsy and Ebay as the masses of small businesses like me will simply close their shops and leave the platform. |
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Post by stardiamond on Dec 8, 2021 15:18:51 GMT -5
I just got an email from Etsy that starting in 2022 the 1099-k thresh hold dropped from $20,000 to $600 Just for clarification this is not just an Etsy thing, the FEDERAL 1099-k threshold was lowered to $600 by the current government, and it also affects Ebay and others. It will be interesting to see the effect on Etsy as many people think they have already lost their soul as the shift to large mass produced garbage sellers has been in full effect for years. I'm betting that the governments actions are going to have a huge impact on Etsy and Ebay as the masses of small businesses like me will simply close their shops and leave the platform. It is related to legislation for covid relief. I'm not trying to sell cabs as a side job. I've never filed as a small business and will look at the record keeping required. Worst case, I'll just use the 1099-k as income and not use profit for reporting. As long as I can have enough revenue to buy good material and supplies I'll keep making cabs. |
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Post by MsAli on Dec 8, 2021 16:40:01 GMT -5
The tax info is no surprise. They sent out an email I want to say last year, might of been the year prior that this was coming. You either have to provide your ssn or tax ID.
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Time
starting to spend too much on rocks
Making something positive out of COVID restrictions by learning to create jewelry out of stones.
Member since September 2021
Posts: 154
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Post by Time on Dec 8, 2021 22:45:04 GMT -5
I hope I am doing this correctly for a comment on your post. First thank you for the sharing your experience on Etsy. I am new to the whole concept but the idea of having something you like to do pay it’s own way and possibly make a profit is interesting. The fact that Etsy will be reporting revenue of $600.00 and above should not be a problem. It will require keeping up with purchases of supplies and materials. Rock hunting trip mileage should be logged as well as any other business related mileage. The key point is you are in business to make a profit which separates the activity from being a hobby. With good record keeping the same activity is now a business and can be reported on a Schedule C for Income Tax.
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Post by stephan on Dec 8, 2021 23:38:48 GMT -5
I used to put effort into Etsy, but it just wasn’t worth it. I haven’t abandoned my shop, but lately I’ve been doing a very informal, local craft show. That seems to be better, and a lot more fun, even when I don’t make many sales.
After my experience with an abusive customer, earlier this year, Etsy lost its appeal, even though they backed me. F2F is a lot more fun. Either way, my hobby income is well below the taxable level.
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