How Etsy Funded Coupons Work For Sellers

Etsy funds two types of discounts with coupon codes buyers can use during checkout. 

We occasionally publicly promote coupons for use during set dates. We also send coupons privately to buyers for certain occasions. 

Both public and private coupons are fully funded by Etsy, meaning Etsy pays for the discount. The seller receives the full order amount when a buyer uses the coupon code. 

Etsy funded promotions are separate from promo codes a seller can create just for use in their shop.

Etsy funded promotions

Etsy occasionally publicly promotes a coupon code that is active for a set length of time, for example, for 48 hours during a weekend or over a holiday, and in set geographies. Depending on the terms, Buyers may be able to use the coupon as often as they like on qualifying order amounts while it’s active. 

The eligible regions, promotion length, discount amount, and other details may differ depending on the promotion. We often alert sellers about Etsy funded promotions in Forums announcements, Shop Manager cards, and @EtsySuccess on Instagram.

How to participate

As long as you’re enrolled in Etsy Payments you don’t need to do anything more to be eligible.

Here’s how to make the most of these Etsy funded promotions: 

  • Turn on Share & Save. If you make an eligible sale during the promotion through your trackable link, we’ll cover the cost of the promotion and take 4% of the order total (minus the promotional discount) off your Etsy bill.

  • Share your listings on social media and mention the promotion. Go to Listings, choose the gear next to a listing photo, and Share.

  • We often share a special image you can screenshot and share to your own channels. You can typically find these in the Highlights section of the @EtsySuccess Instagram when the promotion goes live.

Terms and Conditions will apply.

Private coupons

Etsy sometimes privately emails coupons to certain buyers that can be applied toward their next eligible Etsy order. Only the recipient can use the coupon and only on one order.

The coupon may be for a fixed-amount discount off eligible orders. These coupons may include special conditions for use, such as a minimum spend requirement. The coupon also includes expiration details on how long the buyer has to use the coupon before it expires. 

Does an Etsy funded coupon change how much I make on a sale or the fees I pay?

These coupons are entirely funded by Etsy. This means that when a buyer uses an Etsy coupon on an order, you still receive the full order amount. After a sale, you can see the full amount on the receipt and reflected in your Payment account.

When a buyer makes a purchase from your shop using an Etsy Coupon, you pay the same seller fees you would have paid on an order without an Etsy Coupon. 

What happens if I issue a refund?

On Etsy.com, when you issue a refund for an order for which a coupon was used, you see a notification of the amount to be refunded to Etsy on the refund confirmation page. 

How do Etsy funded coupons work with taxes? 

Taxes collected and remitted by Etsy

When Etsy is required to pay taxes, Etsy will remit the tax due to the tax authority. Depending on where the buyer is based, Etsy may be required to pay tax on the amount payable by the buyer or on the amount payable before the Etsy coupon is applied. For example, if an item originally costs $100, and the price is $90 after the Etsy discount is applied, taxes will be collected and remitted to eligible governments on either the $100 or the $90 depending on the rules in your country.

Sellers can see when an Etsy funded coupon was used on an order and how much was funded by Etsy in the order details in Shop Manager.

Taxes collected and remitted by sellers

Where you as the seller are required to collect the tax and remit the tax to your local tax authority, the tax treatment depends on your own personal circumstances and the tax rules in your location. To enable you to remit the right amount of taxes, sellers who collect and remit their own taxes can view how much is being funded by Etsy via Etsy Coupons in the order details in their Shop Manager. We recommend that you consult with your tax advisor regarding the amount on which you are required to pay taxes. 

Taxes paid by buyers

For orders where buyers are required to pay taxes, for example where goods are being imported into a particular jurisdiction, local rules will determine whether taxes are charged on the order amount minus the Etsy-funded amount or the order amount before the discount is applied. 

Learn more about taxes for orders shipping internationally.

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