Etsy raises fees and revenue outlook, shares soar
ASSOCIATED PRESS
An Etsy mobile credit card reader in New York in 2015. Etsy’s stock soared in early trading today as the online crafts marketplace announced that it’s increasing its transaction fee and boosted its full-year revenue outlook.
BROOKLYN, N.Y. >> Etsy’s stock is soaring after the online crafts company announced an increase in fees and boosted its revenue outlook for the year.
The Brooklyn company said today that the transaction fee charged when a person or business makes a sale will rise from 3.5 percent, to 5 percent. It will also apply to the shipping cost. The fee will be increased starting on July 16.
Etsy Inc. has 2 million active sellers and nearly 35 million active buyers.
The company now sees 2018 revenue growth of between 32 percent and 34 percent. Its prior forecast was for 22 percent to 24 percent growth.
Shares jumped 28 percent in afternoon trading to $42.12. The stock has doubled in the year to date.
