Etsy vs Profit

Why Most Sellers Undercharge (And How to Fix It)

If you're selling on Etsy but feel like the money isn't adding up… you're not alone.

Many Etsy sellers undercharge without realizing it. Between materials, time, Etsy fees, and shipping, it’s easy to price too low — and end up working for free.

Let’s break down why it happens, how to calculate your real profit, and how to price confidently without guessing.

Why Undercharging Happens

Here are common reasons Etsy sellers underprice:

  • Comparing prices with others (without knowing their costs)

  • Wanting to stay “affordable”

  • Not tracking all hidden costs (like packaging and Etsy fees)

  • Not factoring in your time

The result? You’re making sales… but not making money.

How to Calculate Real Profit

Profit isn’t just “price – materials.”

You also need to subtract:

  • Etsy listing, transaction & processing fees

  • Shipping & packaging

  • Advertising (if you run Etsy ads)

  • Time and labor

Want to make it easy? I created the Etsy Profit Calculator to help you instantly calculate what you really earn per product — so you can price smarter.

How to Fix Undercharging

  • Use the calculator to test price points

  • Compare actual profit margins, not just revenue

  • Don't be afraid to raise your prices — you deserve to be paid!

Conclusion

You're not just selling products — you're running a business. And that means pricing based on real numbers, not gut feelings.

👉 Grab the Etsy Profit Calculator for $5 and see your real profit today.

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Etsy Finances: How to Keep It All Organized Without QuickBooks

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What I Wish I Knew Before Starting My Etsy Shop