Cost Comparison of e-Commerce Platforms for Home Bakers

By: Ari Hoffnung

Are you considering selling your home baked goods online? The good news is that there are many options to choose from. With that said, if you are looking to maximize your profit margins you need to read the fine print to develop a better understanding of the all-in e-commerce costs.

In this blog post, we examine the costs of several of the most popular e-commerce platforms for home bakers: Cottage Nosh, Etsy, Shopify and Squarespace.

Monthly Fee

Transaction Fees

Processing Fees

$0

0%

0%

$0

5%

3% + $0.25

$29

0%

2.9% + $0.30

$26

3%

2.9% + $0.30

Simply put, this detailed cost analysis highlights the fact that Cottage Nosh makes financial sense for home bakers for several reasons:

  • No Monthly Fees – While monthly fees with Shopify and Squarespace will run you more than $25 , Cottage Nosh has no monthly fees.
  • No Transaction Fees – Unlike Etsy which takes a huge 5% bite out of each transaction and Squarespace which takes a slightly smaller 3% bite, Cottage Nosh has no transaction fees.
  • No Processing Fees – In stark comparison to Etsy, Shopify and Squarespace which charge processing fees of about 3% on each transaction, Cottage Nosh covers all payment processing costs for home bakers. This means that you’ll receive 100% of your sales.

Let’s use an example to illustrate these fees. If you were to sell a customer $50 of baked goods on Etsy, their 5% transaction fee and processing fee of approximately 3% means you’ll need to immediately fork over 8% of your sales or $4 in fees.

This is not to say that Etsy, Shopify or Squarespace can’t accommodate the online needs of home bakers. While they do lack some of the custom features developed by Cottage Nosh for home bakers like Nosh Days, they are still great e-commerce platforms.

In fact, several Cottage Nosh bakers have chosen to list their items on a Shopify or Squarespace and on Cottage Nosh.

You can read more about the benefits of becoming a Cottage Nosh Seller and contact our Baker Success team with any questions.