I started using Etsy’s new Direct Checkout (DC) option on August 17th. DC provides my potential customers with an extra option when paying for their purchase. Previously, the choices were (1) PayPal. That’s it. I didn’t and still don’t accept checks and money orders directly from customers. Customers can use PayPal to pay by check, withdrawal from their bank account, debit to their credit card, and certain other services offered by PayPal depending on their account standing.
Direct Checkout allows a customer to directly charge their purchase to the credit card of their choice without having to go through PayPal. It’s like I have an account with all the credit card companies, swiping the card info into my system and sending the charge to the credit company. Except the accounts are with Etsy and Etsy passes on the credit card company’s fee, which is set at 3% of the total sale price plus 25¢. The PayPal fee is a straight 5.2% of the total sale price. Both of these fees are in addition to Etsy’s transaction and listing fees. Obviously paying less fees is good, so DC wins here, hands down.
Many of the people I know are hesitant to use DC. What follows is my personal experience to date with DC.
- I started using DC on 8/17/2012.
- I had my first DC sale on 8/21/2012; nice!
- Between 8/17/2012 and 12/3/2012, I had a total of 7 sales using DC.
- During this same time period, I had a total of 19 sales.
- This means that 36.8% of my sales were made using DC; very nice!
So, potentially would I not have made those 7 sales and if I did, the resulting fee would have been larger. More orders is always better than fewer orders just like lower fees is always better than higher fees.
For some sellers, the problem with using DC is when Etsy releases the sale funds (less those fees) to the sellers bank account. According to Etsy, sale funds “are available for deposit to your bank account once the order is marked “Shipped,”” and “any deposit delays that may apply to the sale have passed. The majority of shops have a standard deposit delay of one to three days.” I received a message from Etsy early on that my deposit delay would be one day because of my excellent record of meeting my published “ready to ship in 1-3 days” guarantee.
If you can’t or don’t ship your orders immediately, as in the case of items that have to actually be created after the order is received (custom clothing is an excellent example), I can see how this would affect such a business, especially if they rely on receiving the funds to buy the materials to fulfill the order. This is something that Etsy has been asked to consider.
My data shows that the funds from that first sale on 8/21/2012 were deposited to my bank account on 8/27/2012, 6 days later. There was an 8 day delay between the second sale and deposit (a weekend snuck in). By my third sale, the deposit was happening the next day and so it has continued to date.
I haven’t had any problem with the correct amounts being credited or deposited to my account, or the fees charged.
Altogether, Etsy’s Direct Checkout has had a favorable affect on my boutique.