Tuesday, August 25, 2015

Pattern Shop Updates

Hi guys,

If you buy my bag patterns, I have a few updates for you.


Firstly, I've decided to lower the price for my Messenger Bag. I designed this pattern as a learning bag for a beginner transitioning to a larger and more complex bag. This pattern was published in 2012. Unfortunately sales has never been good and it's been almost 3 years. I've thought about it and decided I will slash the price permanently from US$10 to US$6. I have updated my Etsy, Craftsy and other stores with the new price.

This news affects you only if you reside in a EU country. Etsy now collects EU VAT for digital sales if the buyer resides in a EU country. This means that on top of the selling price of my pattern, you have to pay the prevailing EU VAT rate of your country. This VAT doesn't go to Etsy or me. It eventually makes its way to the EU VAT tax collector of the customer's country. I get customers from EU countries once in a while. Most of my customers are from US, Australia, New Zealand and South East Asia.

Even though I don't have a large EU customer base, I would like to encourage them to buy from me. I have thought about how I can get EU customers to pay the same price as my other customers from US, Australia, New Zealand and South East Asia.

Anyway, my solution is this. I have set up my Payhip store such that I pay all EU VAT out of my own pocket. The catch? My Payhip store is very slow to load. However it is a low maintenance site for me. I only pay a fee when I sell anything. So I think I can afford to sponsor the EU VAT. The shop has a shopping cart so you can buy more than one pattern at a time.

To encourage you guys to give this slow tortoise Payhip shop a try, I have created a special coupon for you - ILOVEU25 which gives you a 25% discount storewide valid till 31st August 2015. Apply coupon code only at Checkout. Click here: https://payhip.com/projectsbyjane
If the site takes too long to load, just click refresh. And yes, in case you're wondering, anyone can use this coupon, whichever country you live in!

This is a small rant as a Etsy seller. When Etsy announced that it would collect and remit EU VAT for EU customers, I was one happy bird because it meant I didn't have to do the work. However, since implementation, I have noticed that Etsy is doing it in a way that makes me shortchanged.
Say I sell my lunchtime pouch pattern to a UK customer.
Price : $6
VAT at 20% for UK: $1.20
Total: $7.20

Rightfully, I should only receive $6. However, Etsy has chosen to do it this way instead. It treats the transaction as $7.20 instead of $6. Because of that Paypal charges me 62 cents fee instead of 56 cents fee. So I end up forking over an additional 6 cents to Paypal. At the end of the month, Etsy collects from me my fees plus the EU VAT I have received.

You may think 6 cents is nothing but it adds up. Plus it's wrong that I should be penalised because my customer resides in a EU country. Hopefully this problem gets rectified.


MAndy said...

I need to get this out of my chest: ETSY SUCKS!
Ok, done...I just don't think I will want to sell there again. Why? Don't agree with their new policy and that they still allow factory to sell their goods under handmade.

Projects By Jane said...

Hi Mandy, I'm sorry Etsy didn't work out for you. Since I sell digital patterns, the factory/handmade issues don't really affect me. I'm okay with Etsy so far. Certainly there are issues from time to time but they eventually get sorted out. I am hoping the extra payment I have to fork out will be resolved soon as it affects every digital seller. I have sold at other markets and they are far worse. Two most important factors for me for a market - loading speed of a website and traffic and Etsy has both.

Linda said...

At least Etsy doesn't take 50% of your sales like brick and mortar stores do!!!

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