Tech

Online marketplace Etsy soars after increasing the fees it takes from each sale

Key Points
  • Etsy said Thursday it was raising the transaction fee it charges when a seller makes a sale, effective July 16.
  • It increased its full-year revenue growth estimates to 32 percent to 34 percent as a result.
  • Shares rose as much as 35 percent Thursday.
An employee walks past a quilt displaying Etsy Inc. signage at the company's headquarters in the Brooklyn.
Victor J. Blue/Bloomberg via Getty Images

Online crafts marketplace Etsy's shares soared Thursday after announcing it'll take a larger percentage of each sale and raising its full-year guidance to reflect the higher revenue.

The stock gained 26 percent by the end of trading, after rising as much as 35 percent to $44.78 earlier in the day.

The company said Thursday it was raising the base take rate — or the percentage of a sale that Etsy keeps for itself — from 3.5 percent to 5 percent, effective July 16.

It now expects full-year revenue growth between 32 percent and 34 percent, up from its previous guidance of 22 percent to 24 percent.

Etsy, whose platform connects artisans and crafters with online shoppers, also announced new subscription plans and tools for its independent vendors.

As of Thursday's close the stock was up 100 percent year to date and more than 200 percent in the 12-month period.