Etsy, Inc. (NASDAQ: ETSY), the global marketplace for unique and creative goods, today announced new subscription packages and enhanced tools to support global sellers at different stages of growth. The new, optional monthly plans begin to roll out next month. Etsy also announced that it is revising its seller transaction fee, which will support increased investments in the growth and health of the marketplace.

"Empowering creative entrepreneurs is at the heart of Etsy's mission to keep commerce human," commented Josh Silverman, Etsy, Inc. CEO. "Our two million active sellers have individual business goals and aspirations, and we want to support them no matter where they are on their journey. By listening to the needs of our sellers, we designed our new subscription packages with a combination of tools to help them succeed at each phase of their business lifecycle."

Seller Packages

Starting in mid-July, sellers looking to jump-start their growth can opt into Etsy Plus for an introductory rate of $10 per month. In 2019, Etsy also plans to roll out Etsy Premium, which will be geared towards larger, more established creative businesses. Sellers who do not opt into Etsy Plus or Etsy Premium will have access to the same tools and services that are currently available on Etsy without an additional monthly fee as part of Etsy Standard.

Transaction Fee

Starting July 16, 2018, the transaction fee charged when a seller makes a sale will change from 3.5% to 5%, and it will also apply to the cost of shipping. This revised fee structure will enable Etsy to make further investments in marketing to attract buyers, enhance customer support, and drive product innovation.

Rachel Glaser, Etsy's Chief Financial Officer added, "Our revised fee structure will allow us to make more meaningful investments on behalf of our sellers while remaining what we believe is the best value for entrepreneurs looking to start, manage, and grow a creative business. We plan to increase our 2017 direct marketing spend by at least 40% in 2018, revamp our Etsy community platforms, and execute against an exciting product roadmap. We believe all of this will help drive near-term growth and increase buyer lifetime value."

Updated 2018 Guidance

In light of these changes to its fee structure, which will go into effect July 16, 2018, Etsy is revising its 2018 financial guidance (prior guidance provided on May 8, 2018) as follows:

• GMS growth of 16%-19% (vs. prior guidance of 16%-18%)
• Revenue growth of 32%-34% (vs. May 2018 prior guidance of 22%-24%)
• Adjusted EBITDA margin of 21%-23% (no change from prior guidance), reflecting Etsy's planned reinvestment in improved seller tools and support, enhanced shipping experience, and increased marketing.

For notes about the factors contributing to Etsy's guidance, please see the investor slides available on Etsy's investor relations website.

For more information on this announcement, please see our post on our news blog and dedicated seller page.