Etsy Increases Transaction Fees by 30 Percent 📈
Scott D. Clary | Daily Business, Tech & Finance Newsletter
This is a daily newsletter that covers trending business, tech and finance stories. If you enjoyed the newsletter, please share it with a friend who’d find it useful.
Or… invite friends to the newsletter through our referral program for Amazon gift cards.
Etsy Increases Transaction Fees by 30 Percent 📈
American e-commerce company Etsy is increasing its seller transaction fees from 5% to 6.5% percent, the company announced.
In its fourth-quarter earnings report, the company said, “Etsy also announced today that its seller transaction fee is increasing from 5% to 6.5%. This fee change will go into effect on April 11, 2022. We’re planning to invest even more in making Etsy the best place to run a creative business.”
The company expects to invest most of the incremental revenue earned from the 30% fee hike to increase its seller tools, marketing efforts, and create world-class customer experiences.
The transaction fee is the percentage of the total order amount that Etsy charges when a seller makes a sale.
Etsy had last increased its transaction fees in 2018 when it increased fees from 3.5% to the current 5%.
Besides this, sellers also needed to pay $.20 to list an item and payment processing fees.
As such, this latest spike in transaction fees will likely annoy merchants on the platform, who for several years have complained about changes at Etsy.
Federal Judge Declines ❌ Musk's Request to Force SEC Before The Court
A U.S. federal district judge has rejected the request of Tesla CEO Musk to bring the U.S. Securities and Exchange Commission (SEC) back into the court to address his accusations about unpaid settlement funds.
US District Judge Alison Nathan rejected the order saying it was ‘unclear’ exactly what Musk was requesting.
Earlier this month, Musk, via his attorney Alex Spiro, had alleged in letters to the district court that the SEC had leaked some information about a federal investigation to an unidentified person.
Additionally, Musk had also accused the SEC of harassment, regular investigation, and neglecting its duties to remit $40 million to shareholders that Musk and Tesla had previously paid in fines to settle fraud charges.
In a recent court order, Judge Alison Nathan said that there was never a deadline set for the SEC to remit the $40 million to shareholders, but she said Musk could file a motion to set one.
Nathan wrote, "Otherwise, the Court cannot enforce a deadline that does not currently exist." Meanwhile, the SEC said that it was still developing a plan to allocate the funds.
Micromobility Startup Beam Raises $93 Million in Series B 💰
Beam, a Singapore-based micromobility startup, has raised $93 million in its Series B funding round to accelerate growth into new Asian countries.
The Series B funding round was led by Affirma Capital and also saw the participation of Sequoia Capital India, EDB Investment (EDBI), Hana Ventures, ICT Capital, RTP Global, AC Ventures, and Momentum Venture Capital.
Founded in 2018, Beam is a micromobility company that offers shared e-scooters rentals.
The startup is focused on improving the accessibility of cities via better first-and-last mile connectivity and providing short-distance transport solutions to customers.
Currently, the company operates e-scooters and e-bikes in 35 cities across Malaysia, South Korea, Thailand, Taiwan, Australia, and New Zealand.
The startup plans to use the fresh capital to expand its foothold into markets like Japan, Indonesia, the Philippines, Vietnam, and Turkey.
Additionally, the fresh proceeds will enable the startup to boost the deployment of a new 5th-generation Beam Saturn e-scooter and a new e-moped to its vehicle portfolio, which the company plans to launch this year.
Coinbase Reportedly Makes $2.2 Billion 💸 Revenue in Quarterly Transaction Fees
U.S-based cryptocurrency exchange Coinbase has reportedly made $2.5 billion in net revenue for the fourth quarter, beating analyst predictions by 27%.
FactSet, an open data and software solutions provider for the financial industry, had predicted Coinbase to generate approximately $1.9 billion in revenue for the fourth quarter.
However, the crypto exchange platform surpassed the forecasted revenue by generating $2.276 billion of its total Q4 revenue from transactions fees alone.
The total transaction revenue of the company was a whopping $6.8 billion in 2021.
Additionally, the crypto exchange platform also witnessed substantial growth in monthly transacting users (MTU) from 7.4 million in Q3 to 11.4 million in Q4.
In its Q4 earnings report, Coinbase has stated about the growth of NFTs, Web3, and DeFi as the sources of the company's future growth, noting the quick increase in sales of NFTs as a reference.
In 2022, Coinbase plans to hire about 6,000 employees with an increased focus on customer support and reliability.
The company also expects to spend $4.25 billion to $5.25 billion in 2022 on technology and development teams.
Around the Web 🌍
Reddit Rolls Out New Discovery Tab to Improve Content Discovery: Reddit has announced the launch of a new Discover tab feature for its official iOS and Android apps. This feature will help users improve discover content they may be interested in by curating images, GIFs, and videos in a scrollable grid.
Carvana Buys Adesa US Auction Business to Accelerate Growth: Carvana, an online used cars marketplace, has agreed to acquire Kar Global’s Adesa U.S. auction subsidiary for $2.2 billion in cash. The proposed deal will provide significant infrastructure and team to expand and enhance Carvana’s customer offering with a wider selection of vehicles and even faster delivery times.
If you like the content in this newsletter, there’s a pretty good chance you’ll like my podcast, “Success Story”, where I unpack the playbooks of entrepreneurs, executives and other high performing individuals.
Latest Episode 👇
If you enjoyed the newsletter, please share it with a friend who’d find it useful.