Business Strategy

Understanding Etsy's standard vs. Plus plans and when it makes sense to upgrade

An overview of Etsy's two seller plans and a few clear indicators that you might get massive benefits from levelling up to the paid plan
Propel Profit
7 min to read

So you’ve decided to open a shop and start selling on Etsy, huh? 

If you’re an entrepreneur, maker or crafter, you’re in the right place! The unique marketplace has millions of dedicated shoppers visiting daily looking to find one-of-a-kind or custom items, so you’re exactly where you need to be to get eyes on your products.

When sellers open up their shop, Etsy offers two subscription plans that offer different levels of service and tools. In this article, we’ll explain the difference between the two subscription plans offered by Etsy and then go through some scenarios that highlight when it may be time for you to upgrade.

First, there’s the Standard Plan. This plan is absolutely FREE and recommended to any sellers just starting out. 

All sellers automatically get access to Etsy Standard Plan basically as a default, and with that a host of basic tools and features and they are not charged any monthly fee. Included in this free plan is the ability to:

      1. Create new product listings
      2. Save on postage
      3. Use Etsy Ads to market your products and more! 

This starter plan is perfect for new sellers who have just opened their shop and are experimenting with features and tools.

Then, there’s the Plus Plan. This plan is available for $10/month USD. The Plus Plan offers a host of additional tools for sellers looking to get more serious about driving profits. With this plan you’ll also get the following on a monthly basis:

1. 15 listing credits
Use for renewal of existing listings (i.e. when you sell any item that has a quantity of more than 1 and the listing is renewed automatically) or when you create new product listings in your shop.

2. A $5 USD Etsy Ad credit
Use toward advertising spend to promote your products

3. Custom Web Address Discount of 50%
Help your audience find you online and brand your shop so you can be top of mind for customers

4. Restock Alerts
Allow your shoppers to see your sold out listings and get notice of what’s in demand so you know to make or stock more!

5. Advanced Shop Marketing Customization
Get additional features like addition of multiple banners to highlight sales or other discounts on your shop

6. Custom shipping box discounts
*Discounts vary by region and are only available to US, Canada, European Union or United Kingdom Plus members

7. Save 30% on Business Card & Printables
Get a discount from Moo, online print & design company to create business cards or marketing printables for your shop - think in-package thank you cards, discount cards, gift cards and more!

So When Does It Makes Sense to Upgrade to the Plus Plan?

That’s a good question. As already noted earlier, it makes a lot of sense for Etsy sellers just starting out to use the free, Standard Plan. But here are some indicators that you may benefit from upgrading:

1. You sell at least 15 products/month, or create 15 new listings a month

If you are selling 15 or more products or you list 15 new listings on the Standard plan, you will pay $0.20/listing for the first 4 month listing term, plus $0.20 every time you sell an item and the listing is renewed.

This means that you would be charged $3 USD for this under the standard plan in the scenario if you sold only 15 items.

2. You spend at least $5/ month on Etsy Ads and marketing

If you have set up any Etsy Ad campaigns and spent at least $5 USD in a month on the Standard plan, you can benefit from the $5 ad credit.

3. You are not only building a shop, you are building a brand

If you need to position your shop or your items as a brand, you need a custom website and by upgrading to the Plus plan you will save 50% on a custom web address with Hover.

4. You want to strengthen your branded marketing promotions when customers land on your storefront

If you want to customize your first impression for customers landing on your shop, there’s no better way to do that than with custom banners to highlight these promotions. Upgrading to Plus will give you the ability to cross-sell, or increase your average order value by showcasing these custom marketing promotions easily.

5. You want your brand to carry through to your shipping / overall customer experience

If you are trying to create a cohesive brand experience, custom shipping boxes are a great way to convey your brand and offer a next-level customer experience.

6. You want your brand marketing on printables to increase post-sale purchases and increase your customer lifetime value

If you want to retarget your customers with additional sales or discounts, adding printable inserts into their packaged items is a proven method to increase recurring sales. Saving 30% on printables from Moo can help you get there. 

7. You regularly sell out of items in your shop and have to mark them as “sold out”

If you sell out of shop items and don’t know if there is more demand for these you are missing out on an opportunity to sell more. By upgrading to the Plus Plan, you will get clear indicators of what your shoppers want by seeing Restock Alerts so you focus on adding more of what your buyers really want!

TAKE NOTE: If you meet criteria for #1 and #2 above only, the numbers work out like this:
- 15 listing credits is valued at $3 USD
- $5 Etsy ad credit is valued at $5 USD
- You are already saving $8 USD on your Standard Plan by upgrading to Plus, which means you get all the other features and discounts listed above for only $2 USD extra

If you look at the Plus plan by the numbers, it becomes pretty clear when it might make sense to upgrade to the paid subscription, but if you’re on the fence, it’s worth asking yourself what your objectives are. If, for instance, you don’t list 15 or more new listings per month and don’t use Etsy ads, but you are focusing on brand building, there are meaningful business branding discounts included that would warrant the $10 USD / month fee between the discount on custom website, advanced marketing announcements on storefront, business pintables and inserts, custom shipping boxes etc. 

For most Etsy sellers, the decision to upgrade to the Plus plan is a strategic choice that opens up a whole host of new tools and features to help them elevate their brand, create a more cohesive customer experience, and drive massive profit growth. 

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