This summary of the video was created by an AI. It might contain some inaccuracies.
00:00:00 – 00:21:03
The video discusses the costs associated with selling on platforms like Etsy and GoImagine, comparing fees, profit margins, and considerations for e-commerce businesses. GoImagine emerges as a competitor to Etsy with lower fees and a charitable focus. Various fees on GoImagine, including transaction fees and membership tiers, are explained. The importance of profit margins, competition, and traffic in choosing a platform is emphasized. Factors like labor costs, material costs, and taxes are highlighted as essential in calculating profit margins. The speaker also addresses challenges in starting an e-commerce business and advises understanding and accepting platform fees when making business decisions. Platforms like Shopify, eBay, Amazon, Poshmark, and GoImagine are compared for their fee structures and traffic generation aspects.
00:00:00
In this segment of the video, the speaker discusses the cost of starting on GoImagine compared to Etsy. GoImagine is emerging as a serious competitor to Etsy, with lower fees and a charitable vision. The main fee on GoImagine is a 5% transaction fee applied to the total purchase, including shipping costs. The platform also handles sales tax collection and remittance, making it convenient for sellers. By selling on multiple platforms like GoImagine in addition to Etsy, sellers can diversify their revenue streams.
00:03:00
In this segment of the video, the speaker discusses various fees associated with using the Stripe payment provider on a platform like GoImagine. The processing fee is 2.9% plus 30 cents per transaction. Additionally, there are membership tiers on GoImagine, including Launch for $2.50/month (20 listings), Thrive for $5/month (200 listings), and Mosaic for $10/month (1,000 listings plus a website builder feature). The speaker provides an example breakdown for fees when selling a $25 item with $5 shipping. Shipping labels need to be purchased externally, but the transaction fee applies to the total amount including shipping.
00:06:00
In this segment of the video, the speaker breaks down the fees involved in selling a product. The transaction fee is $1.50 (5% of the total), the Stripe processing fee is $1.17 (2.9% + $0.30), totaling $2.67 plus $5 for shipping. The total fees amount to $7.67. The profit is calculated to be $23.33, with a profit margin of 74%. The comparison is then made to selling on Etsy, which has different fees, including a transaction fee of 6.5%, a listing fee of 20 cents, and a processing fee of 3% + $0.25. Shipping costs vary based on location.
00:09:00
In this segment of the video, the speaker discusses how Etsy applies transaction fees to the total cost, including shipping. Sales tax is collected and remitted by Etsy, so sellers do not need to take any action. The total fees for listing a $25 item with $5 shipping on Etsy amount to $8.30. After deducting these fees, the profit left to the seller is $21.70, resulting in a 72% profit margin. The speaker also mentions offsite ads on Etsy, where sellers can opt in or out. Sellers making over $10,000 are automatically opted in, potentially incurring a fee up to 10%, while those making less have the option to opt in or out, with fees potentially reaching up to 12%. The speaker highlights that despite the fees, the return on ad spend is usually profitable, ranging from six to nine times, and clarifies that the fees for offsite ads are typically lower than 10%.
00:12:00
In this segment of the video, the speaker discusses various costs and fees associated with selling on platforms like Etsy and GoImagine. They mention how renewal fees and memberships can impact your bottom line, emphasizing the importance of starting with a high profit margin to account for rising costs. Additionally, they mention factors like labor costs, material costs, and taxes that should be considered when calculating profit margins. It is advised to research and choose products with a high profit margin without compromising quality.
00:15:00
In this segment of the video, the speaker discusses the importance of aiming for a 50% profit margin and warns against starting too low. They emphasize the need for research and due diligence before starting a business. The comparison between Etsy and GoImagine is made, highlighting the significant difference in traffic, with Etsy having far more visitors. However, they note that GoImagine has less competition among sellers. The speaker suggests that competition is necessary to bring in buyers and mentions the importance of considering traffic when choosing a platform to sell on.
00:18:00
In this part of the video, the speaker discusses the challenges of starting an e-commerce business and emphasizes the importance of understanding and accepting the fees associated with different platforms. They compare the fees of platforms like Shopify, eBay, Amazon, Poshmark, and Go Imagine, highlighting the trade-off between lower fees and having to generate your own traffic. The speaker recommends considering these fees when calculating profit margins and making decisions about the best platform for your business.