Optimize Your Etsy Shop for Canadian Sellers: Currency Conversion Insights


Hello, it's Orit here! Welcome back to the channel with another valuable Etsy tip, specifically for Canadian sellers. Recently, one of our viewers asked about Etsy's currency conversion fees when selling in a different currency than your bank account's currency. This reminded me of our own experience when setting up our Etsy store in Canada.

Our Initial Setup and the Currency Dilemma

Initially, we set up our store in US Dollars, thinking it would be advantageous since the US Dollar is stronger than the Canadian Dollar. However, we soon realized the implications of this decision and decided to switch our shop currency back to Canadian Dollars. Here's why:

Avoiding Etsy's 2.5% Currency Conversion Fee

If your shop's currency differs from your bank account's currency, Etsy charges a 2.5% currency conversion fee on the sale amount, on top of the exchange rate. For example, if you sell in US Dollars but have a Canadian bank account, Etsy converts the currency and charges a 2.5% fee for this service. By listing in Canadian Dollars and using a Canadian bank account, you can avoid this fee entirely.

Understanding the Buyer’s Perspective

It's important to note that buyers will see listings in their local currency, regardless of your shop currency. If you list an item for 20 CAD, a buyer in the US will see the price in USD. This brings us to another benefit.

Competitive Pricing Advantage

Due to the weaker Canadian Dollar, your listings might appear cheaper to US buyers, making them more competitive. This can potentially increase sales if a significant portion of your customers are from the US. While results can vary based on numerous factors, some sellers have noticed an uptick in sales after switching their shop currency to Canadian Dollars.

How to Check and Change Your Shop Currency

If you’re unsure of your current shop currency, follow these steps:
1. Log into your Etsy store.
2. Go to Shop Manager on the left-hand side.
3. Select the Finances tab.
4. Click on Payment Settings.
5. In the Currency tab, you can see your current shop currency and change it if needed.

Switching your shop currency can be done easily by selecting the new currency and confirming the change at the bottom of the page.

Conclusion

By listing in Canadian Dollars and using a Canadian bank account, you can avoid Etsy’s 2.5% currency conversion fee and potentially benefit from competitive pricing for US buyers. Let us know your thoughts and experiences with shop currencies in the comments below. 


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