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Chapter
2
of
Etsy Holiday Promotion Guide
Know Your Profit Margin

Before you prepare any promotion materials or creating your Black Friday offer, you’d need to calculate your costs very carefully so you know your bottom line.


This helps you determine how much discount you can offer in the sales event.


Some common costs for Etsy sellers:

  • Material
  • Labour
  • Packaging
  • Shipping
  • Etsy fees
  • Etsy ads


For a more comprehensive look at costs and profit, read our pricing course here 


After knowing your costs (bottom line), you can now add on your profit margin.


For a big sales event like BFCM, sellers usually lower your profit margin to win more sales.


For example, rather than a 30% profit, consider dropping it to 10-15% margin to draw in shoppers that are looking for deals.


For digital products, you have a much bigger room for discount because there’re almost no material, shipping, packaging costs. It’s common to see shops offering 50% or more discount on digital downloads during those few days.