Damon Mcknight
Etsy is an online marketplace with over five million sellers serving more than 90 million active buyers. It is a platform for sellers to list handmade, vintage, or curated products, and for buyers to purchase unique crafts, jewelry, art, clothing, and home goods. While Etsy does all its business in US dollars, sellers can list their products in other currencies, and buyers can browse and purchase in their preferred currency. When a currency conversion is required, Etsy applies a 2.5% currency conversion fee to the current market rate. Buyers complete the checkout process in their preferred currency, and Etsy converts the funds to the seller's bank account currency before transfer. This feature allows Etsy to cater to a global audience, including Australian buyers who may prefer to shop in AUD.
| Characteristics | Values |
|---|---|
| Etsy's default currency | USD |
| Currency conversion fee | 2.5% |
| Currency conversion charge | Applicable |
| Currency settings | Can be changed by the user |
| Currency conversion by payment gateway | PayPal provides automatic currency conversion |
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What You'll Learn
Etsy's default currency is USD
When a conversion is required, Etsy applies an additional currency conversion charge of 2.5% to the current market rate. This means that if you list items in a currency other than your bank account's currency, Etsy will convert the funds to your bank's currency, but you will pay a fee for this service.
It is highly encouraged that sellers list in the currency of their bank accounts to avoid these fees. However, some sellers choose to list in USD because the US is their biggest market, or because they want to appeal to US buyers.
If you are seeing items priced in AUD, it may be because your device location is set to Australia, or because the seller has chosen to list their items in AUD. You can change your currency settings on Etsy by going to 'Account Settings' and selecting your preferred currency.
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Etsy converts currency for buyers
When a buyer purchases an item listed in a currency other than their preferred currency, Etsy will convert the listing price using an approximate conversion based on current exchange rate data. This conversion includes an additional currency conversion charge, which is updated regularly. Etsy also supports credit and debit card transactions in major currencies, allowing buyers to complete the checkout process in their chosen currency.
Additionally, if a buyer pays through PayPal, PayPal will handle the automatic currency conversion based on the seller's listing currency. However, it is important to note that some currencies supported by Etsy may not be supported by PayPal. In such cases, buyers can still use PayPal to check out using the seller's currency if it is supported.
Etsy's currency conversion feature simplifies the shopping experience for buyers by enabling them to view and purchase items in their preferred currency. This functionality helps buyers from different countries to comfortably transact on the platform without needing to manually calculate currency conversions.
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Etsy applies a 2.5% currency conversion fee
Etsy recommends that sellers list their items in the same currency as their payment account currency to avoid foreign exchange charges. If an Etsy Payments user decides to list in a currency other than that of their payment account, a 2.5% currency conversion fee is charged on the sale amount to send funds to the payment account. This fee is added to the current market rate.
The 2.5% currency conversion fee is applied when a conversion is required, and the buyer completes the checkout process in their preferred shopping currency. Etsy automatically converts the price to the buyer's local currency. For example, if a buyer is in the US and the seller lists their items in AUD, Etsy will convert the AUD price to USD and show the converted price to the buyer.
The currency conversion is handled automatically by Etsy's payment processing service. It is recommended that sellers list in the currency of their bank accounts to avoid this additional 2.5% fee.
Etsy's fees are typically in USD, and there shouldn't be any additional fees unless a conversion is required. The set-up fee is also charged in the local currency of the seller's bank and converted at the market rate.
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Sellers can choose their shop currency
Etsy allows sellers to choose their shop currency. This means that sellers can list their items in the currency of their choice. This could be the local currency of the country they are based in, or they may choose to list their items in a foreign currency, such as US dollars.
There are a few things to consider when choosing a shop currency. Firstly, Etsy fees are charged in USD, so listing items in a different currency may result in additional fees. For example, when a conversion is required, Etsy applies 2.5% to the current market rate. This means that sellers may receive slightly less money from sales when converting currencies.
Another factor to consider is the target audience. If a seller's target audience is primarily based in the US, it may make sense to list items in USD to create consistency for buyers. However, if a seller's target audience is based in their local market, it may be more convenient to list items in the local currency.
It is worth noting that buyers will see prices in their preferred shopping currency, even if the seller lists items in a different currency. Etsy converts the listing price for buyers using an approximate conversion based on current exchange rate data.
Overall, while sellers on Etsy have the flexibility to choose their shop currency, it is generally recommended to list items in the currency of the seller's bank account to avoid additional fees and potential losses due to exchange rate fluctuations.
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Buyers can change their preferred currency
Etsy allows buyers to change their preferred currency. This means that buyers can complete the entire checkout process in their chosen currency. This is particularly useful when buying from a seller who lists in a currency other than the buyer's preferred currency. In such cases, Etsy converts the listing price for the buyer using an approximate conversion based on current exchange rate data.
If a currency conversion is required, Etsy applies an additional currency conversion charge. Etsy regularly updates its calculation rates. Buyers can also use credit and debit cards that are supported in major currencies. If a buyer is viewing the site in one of these supported checkout currencies, the entire checkout process will be in that currency.
It is possible to browse Etsy in additional currencies that are not supported by Etsy Payments. If a buyer is viewing the site in one of these unsupported currencies, they will be prompted to pay in the seller's listing currency. If a buyer checks out in a currency other than their credit card's currency, they may be subject to a currency conversion fee from their card issuer.
To change currency settings on Etsy, a buyer can go to their account, then account settings, and under location settings, choose their preferred currency. They can also change their preferred currency at the bottom of any page on Etsy.com. In the Etsy app, a buyer can tap 'You', then 'Settings', then 'Currency', and select their new currency.
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Frequently asked questions
Etsy shows prices in the local currency of the seller by default. However, buyers can change their preferred currency in the account settings. Etsy will then convert the listing price for the buyer using an approximate conversion based on current exchange rate data.
Etsy applies a 2.5% currency conversion fee when a conversion is required. Buyers are encouraged to use the currency of their bank accounts to avoid this fee.
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 then select your new currency.
