Ruqayyah Snyder
Etsy displays prices in the local currency of the user. If you are seeing Australian dollars, it may be because you are located in Australia or because your location settings are set to Australia. You can change your preferred currency in your account settings. It is recommended that sellers list their prices in the currency of their bank accounts to avoid additional fees and higher exchange rates.
| Characteristics | Values |
|---|---|
| Etsy's default currency | United States dollars (USD) |
| Currency conversion | Etsy applies an additional currency conversion charge |
| Preferred currency | Buyers can choose their preferred currency in their account settings |
| Checkout process | Buyers complete the checkout process in their preferred shopping currency |
| Listing currency | It is encouraged that sellers list in the currency of their bank accounts |
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What You'll Learn
Etsy's default currency is USD
Etsy's default currency is not USD; buyers can choose the currency that listings on Etsy are shown in. However, Etsy fees are in USD, and it is encouraged that sellers list in the currency of their bank accounts. When a conversion is required, Etsy applies an additional 2.5% currency conversion charge based on the current market rate.
Some users have reported issues with changing the currency on the Etsy app and website, with the currency resetting to USD even after changing it multiple times. A solution to this issue is uninstalling and reinstalling the app.
Sellers on Etsy have also discussed the implications of changing their shop currency to USD. Some opt to list in USD as the US is their biggest market, and buyers in other countries are used to buying in dollars. However, this can lead to fluctuating prices due to exchange rates, which may be confusing for buyers.
Overall, while Etsy's default currency is not USD, many sellers and buyers on the platform choose to transact in USD due to its wide usage and the stability of the currency.
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Buyers see prices in their local currency
Etsy Payments currently supports the following currencies: United States dollar (USD), Australian dollar (AUD), British Pound (GBP), Canadian dollar (CAD), Chinese Yuan (CYN), Danish Krone (DKK), and Euro. Shoppers on Etsy can view prices in any of the supported browsing currencies. Etsy Payments processes payments in these supported currencies. When a seller lists items in a currency other than the currency of their payment account, Etsy will convert the available balance to the seller's payment account currency. This conversion is reflected in the Payment account.
When a conversion is required, Etsy applies a 2.5% currency conversion fee and subtracts it from the sale amount reflected in the Payment account. Buyers complete the entire checkout process in their preferred shopping currency. Hence, it is highly encouraged that sellers list in the currency of their bank accounts. Etsy converts the Direct Checkout funds to the bank's currency on the seller's behalf.
Some buyers have expressed their preference for listings in USD as they would have to use a currency converter otherwise, which would be an extra step. They would also have to deal with decimals in the price, which some customers dislike. However, it is ultimately up to the seller's preference, as everyone has the option of viewing Etsy in their preferred currency.
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Sellers can list items in their preferred currency
Etsy allows sellers to list items in their preferred currency. This means that sellers can list items in the currency of their bank accounts. This is beneficial as it helps to avoid additional conversion fees. Etsy automatically converts item prices based on current market rates, and buyers can complete purchases in their preferred currency.
When a seller lists an item in a currency other than the currency of their payment account, Etsy will convert the available balance to the seller's payment account currency. This conversion is reflected in the Payment account. Etsy applies a 2.5% currency conversion fee and subtracts it from the sale amount reflected in the Payment account. This fee is in addition to the 5% transaction fee charged by Etsy on the listing price, shipping cost, and gift wrap.
Sellers can choose to list items in a major currency such as USD or EUR to attract buyers from larger markets. However, this may result in fluctuating prices due to exchange rates and could potentially lead to longer delivery times if buyers assume the seller is based in a specific country.
It is important to note that Etsy allows sellers to change their shop currency but provides a 14-day window to revert to the original currency and prices. After this period, item prices may differ from the original listing due to rounding and currency exchange rate fluctuations.
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Etsy applies a 2.5% conversion fee
Etsy is a global marketplace, and as such, it needs to accommodate various currencies. Etsy automatically converts the prices of items to the local currency of the buyer. For example, if a buyer is in the US, Etsy will convert the price in AUD to USD. This is a useful feature, as it means that sellers do not need to change their listings to cater to international customers.
However, Etsy charges a fee for this service. If a seller lists items in a currency other than that of their payment account, they will be charged a 2.5% currency conversion fee on the sale amount to send funds to their payment account. This is because the transaction fee, Offsite Ads fee, and Regulatory Operating fee will be converted to the seller's payment account currency at the market rate.
This 2.5% fee is applied to the current market rate. Buyers complete the checkout process in their preferred shopping currency, so Etsy encourages sellers to list in the currency of their bank accounts to avoid this fee. This way, the seller can avoid foreign exchange charges on their sales.
Some sellers have chosen to list in USD to appeal to the US market, their biggest customer base. However, this can lead to fluctuating prices due to exchange rates, and longer delivery times. It is also worth noting that Etsy charges a payment processing fee of 3-6.5% of the total sale price of the item, which varies by country.
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Sellers are encouraged to list in their bank account's currency
Etsy encourages sellers to list in the currency of their bank accounts. Buyers complete the entire checkout process in their preferred shopping currency. Etsy automatically converts the price in AUD to USD for US-based buyers. Etsy applies a 2.5% currency conversion fee and subtracts it from the sale amount reflected in the payment account.
Some Canadian sellers prefer to list in USD as it allows them to maximise their revenue as the Canadian dollar fluctuates. Others believe that by setting their prices in USD, their American customers won't be put off by odd and fluctuating prices. For example, they will be more likely to buy if an item's price is a neat round number, such as $20, than an odd price, post-conversion, such as $25.62.
Some sellers also prefer to set their prices in USD because they purchase most of their supplies in USD, so they can record and track inventory in a consistent currency. However, listing in USD can lead to more complicated accounting, and sellers may have to pay currency conversion fees.
Sellers who list in their bank account's currency do not have to worry about exchange rates and can avoid conversion fees. They can also avoid potential confusion for buyers, who may be surprised by fluctuating prices.
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Frequently asked questions
Etsy automatically displays prices in the local currency of the user. If your location is set to Australia, prices will be shown in AUD. You can change your preferred currency in your account settings.
On Etsy.com, go to 'Your Account' and then 'Account Settings'. Under 'Location Settings', choose your preferred currency and select 'Save Settings'. On the Etsy app, tap 'You', then 'Settings', then 'Currency', and select your new currency.
It is recommended that you list items in the currency of your bank account. This is because Etsy applies a 2.5% charge to the current market rate when converting currencies. However, if you have a lot of customers in a particular country, you may want to list your items in that currency. Some users have chosen to list their items in USD as it is their biggest market and international buyers are used to buying in dollars.
