How Much Does It Cost To Sell On Etsy: What Are Their Fees and Are There Hidden Costs?
Starting a new Etsy shop can be exciting, but it can also feel overwhelming- especially when it comes to all those fees!
If you dig through the Etsy documentation, it seems like there is a fee for everything that you do.
Don’t worry, we got you covered.
In this guide, we’re going to decode all the different fees that Etsy might charge so you have a clearer picture of the real cost of selling on the platform.
Etsy Fee Calculator
If You’re just looking for a quick way to calculate the most common fees Etsy would charge for your listing, you can use the calculator below.
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What Types Of Fees Does Etsy Charge?
Depending on how you make sales through your Etsy Store, you may see a variety of different fees being charged.
Let’s take a quick look at each of the different fees that MIGHT be charged when you sell on Etsy and breakdown when they apply and how much they are.
The most common (and straightforward) Etsy fee is what is referred to as the listing fee.
Each time you create or renew an item on Etsy, you will be charged a flat fee of $0.20.
If you have multiple quantities of an item (if you’re selling Print-on-demand for example), this fee would be charged when you create the listing and then after each sale, when the listing automatically renews.
Unlike most other Etsy Fees, which are only leveled when an item is sold, this fee is charged upfront and applies regardless of whether you ever sell the item or not.
The only exception to this would be if you create a private listing, which wouldn’t appear anywhere in Etsy Search. The fee for private listings is only applied when the item is sold.
You may or may not know that Etsy listings are posted on the site in 4-Month “terms”.
Essentially Etsy sets your listing to “auto-expire” after 4 months, if it hasn’t sold.
When you are creating the listing (and at any point, by going into your Listings Manager) you have the option to choose either an Automatic or Manual listing Renewal.
If you choose the automatic renewal (what I would typically suggest doing), Etsy will automatically renew your listing at the end of the initial 4-month term and in doing so, charge you another $0.20.
If you set your listings to manually auto-renew, you would only be charged the initial $0.20 fee when you create the listing and wouldn’t be charged again until you decide to re-list the product.
In addition to the initial $0.20 listing fee, Etsy charges a transaction fee on every item that is sold through the site.
Currently, Ety’s Transaction Fee is 6.5% of the total amount you collect from the customer.
If you’re not sure exactly how to calculate that for your listings, you can use the following formula:
(Selling Price of the Item + What You Charge For Shipping + Gift Wrapping Charges + Personalization Charges) * 6.5% = Etsy’s Transaction Fee
Let’s take a quick look at an example.
Imagine for a minute that we are selling something on Etsy for $85, and we charge $5 to customize the product with our customer’s name and $10 in shipping.
In this case, our transaction fee calculation would look a bit like this:
($85+$10+$5)*6.5% = $6.50
Since Ety’s transaction fees can only be calculated when someone makes a purchase, the only time you are charged a transaction fee is when you make a sale.
Since they are charged when a sale is completed, Etsy deducts the transaction fee from your current balance each time a sale occurs.
Additionally, if you process a refund for an Etsy customer (via your shop manager), these fees are refunded to you by Etsy as a part of the refund process.
Advertising and Promotional Fees
In addition to getting visits to your listings from Etsy organic search results, they offer a variety of opportunities to drive traffic via paid ads (both on and off-site).
If you choose to take advantage of these opportunities (and you should) you may see some additional fees, charges, or deductions from your balance that relate to them.
Let’s take a quick look at when and how you may see them show up.
Etsy Ads Fees
As I mentioned above, Etsy has advertising opportunities for both getting more traffic from within Etsy and from other websites.
If you opt to use Etsy Ads (you should) to get more traffic from within Etsy, you will see charges deducted from your current balance that relates to the amount you spend.
These fees are very straightforward and are charged on a per-click basis (meaning if someone clicks on your ad and is taken to your listing, you are charged).
Since you choose the amount to spend (we typically suggest $5-10 per day), you can cap the daily budget wherever you feel most comfortable.
Offsite Ads Fees
In addition to Etsy Ads (also referred to as Etsy PPC/Pay-per-Click), Etsy allows you to drive additional traffic by using their Offsite Ads Program.
Unlike the traffic coming from within Etsy via Etsy Ads, traffic coming via the Offsite ads comes from all over the internet and includes:
YouTube AdsFacebook and Instagram (Meta) AdsGoogle Display NetworkGoogle Search Engine AdsBingPinterestAnd Many More
Also unlike the Etsy Ads program, the offsite ads program is enabled for all shops (although if your store earns less than $10,000 per year, you can opt-out).
I can almost hear you wondering aloud…. “but Chris, if it’s not optional, how do they charge me for it?”, so let’s dive into that now.
With Etsy’s offsite ads program, just like with transaction fees, you are only charged when their ads (running somewhere like Facebook or Martha Stewart’s website) lead directly to the sale.
So if someone clicks on one of these ads for something in your store and then purchases something from your store you are charged either 12% (for stores earning more than $10k per year) or 15% (for stores earning less than $10k per year) of the total order amount charged to the customer (minus sales tax charged to US Residents).
Additionally, the offsite ads fee will never exceed $100 on any single order.
How To Calculate an Etsy Offsite Ad Fee
Now that you understand how the Etsy offsite ad fee works, let’s take a quick look at how to calculate it for your items.
Just like with transaction fees on Etsy, the offsite ads fee is calculated as a percentage of the order total, making the formula very similar.
(Selling Price of the Item + What You Charge For Shipping + Gift Wrapping Charges + Personalization Charges) * 12 or 15% = Ety’s Offsite Ads Fee
If we return to the example from the transaction fee of an $85 product + $5 to customize it + $10 to ship the product to the customer our offsite ad fees would look a bit like this.
For Stores Making Less than $10k Per Year:($85+$10+$5)*15% = $15
For Stores Making More than $10k Per Year:($85+$10+$5)*12% = $12
It’s important to remember that this fee is charged in addition to any other applicable fees.
How To Opt-Out Of Etsy Offsite Ads
Although I could spend all day talking about why you should allow Etsy to run off-site ads on your behalf, I also wanted to give you a quick way of turning them off, if you don’t want to run them.
As mentioned above, if your store is making more than $10k per year on Etsy, the program is mandatory, but if you’re making less than $10k, the program is optional.
If you fall into that second group, turning off Etsy Offsite ads is a very simple process.
First, go to the settings inside your Etsy Shop Manager.
Then, under the “Offsite Ads” option, choose “Stop Promoting My Products”.
Etsy will ask you to confirm you want to turn them off and you will be removed from the program.
You can choose to opt back in at any point and Etsy will automatically place you back into the program once you break the $10,000 per year threshold.
If you choose to opt-in to Etsy Plus, which allows access to several additional features and includes a few cool things like 15 monthly listing credits (which covers the listing fee of 15 listings each month) and $5 per month towards your Etsy Ads budget, there is a flat-rate fee of $10 per month (plus tax).
This fee is deducted from your account balance (or attached payment method) once per month on the same day you signed up each month (unless you sign up on the last day of a given month).
For example, if you sign up on September 16th, you would be billed each month on the 16th.
If you signed up on the last day of the month (the 30th of September for example) you would be billed on the last day of the month each month (be it the 28th, 29th, 30th, or 31st.
In-Person Selling Fees
If you choose to sell products from your Etsy store in person (at a craft fair for example) you can do so with the assistance of a “Square” card reader.
Items sold this way are NOT charged any of the typical transaction fees by Etsy, but your payment account will reflect a fee from Square (labeled as a “Square Manual”) fee
Payment Processing Fees
If you are using Etsy Payments to accept payments from Etsy orders, there is a payment processing fee charged for each transaction.
These fees do vary a bit based on where your bank account is located and in some cases based on the destination of the order(chart included below).
This fee is a combination of a fixed amount (typically $0.25 to $0.30 ) + a percentage of the total sale price (the price of the item plus any additional charges, like shipping or personalization, and sales tax).
For US Orders Etsy charges 3% of the total sale price + $0.25 per order.
So if your order total is $100 Etsy would charge $3.25 USD to process the payment.
Like most of the other order-based fees, the Etsy Payments processing fee is automatically deducted from the sale before the balance becomes available to you.
In some cases, Etsy allows sellers the ability to pay for shipping and fulfill the orders directly within the platform.
If you can use this feature the cost of shipping will have all of the same variables it normally does, including
The Shipping Carrier (E.g. USPS, UPS, or FedEx)Where it’s Being Shipped FromWhere it’s Being Shipped ToHow Much it WeighsHow Big The Package IsWhether You Opt For Insurance or Signature Confirmation
Like most Etsy Fees, this fee would be deducted from your current balance on Etsy and will be shown in your Payment Account.
Regulatory Operating Fees
If you live and run your Etsy Shop from the United Kingdom, France, Italy, Spain, or Turkey Etsy will charge you a Regulatory Operating Fee.
These fees are a fixed percentage based on the total selling price of the order (the cost of the product plus any additional services)
If you live in one of those 5 countries, you would need to add the fee (from the chart below) to the other applicable fees to calculate your total order cost.
If you decide to use Ety’s “Pattern” tool to create a website, you may also see a fee for Pattern inside of your payment account.
Although Pattern is free for the first 30 Days, Etsy charges $15 USD per month (plus any applicable taxes) for the service after the trial period.
Additionally, if you choose to register a domain for your website through Pattern, you are charged a Domain registration fee (which varies based on the domain extension, like .com that you select).
The most commonly used domain extension (.com) would result in a $13USD fee annually.
Unlike most recurring Etsy fees, the subscription to Pattern will always bill on the 1st day of the month.
If your trial period expires before the 1st of any given month, you would be charged a pro-rated fee for the first month of the subscription based on the remaining days in the month.
For example, if your trial period ends on the 15th of the month, Etsy would charge $7.50 to fill out the remainder of the month and then charge you the regular $15 fee on the first of next month.
Currency Conversion Fees
The last fee you may see reflected in your Etsy orders is the Currency Conversion Fee.
If you list items in your Etsy store in a different currency than you use for your Etsy Payment account (e.g. your account is in Euros but you decide to list in USD), you are charged a fee of 2.5% of what is deposited into your account (essentially the order total minus fees for Ads, Processing, Operating Fees).
Typically these fees will show in your account in your local currency, except for people in Bulgaria, Croatia, the Czech Republic, Hungary, Poland, or Romania, where all fees will show in Euros.
The Easy Way To Avoid Etsy Currency Conversion Fees
This fee is almost entirely avoidable by simply using the same currency you have for your payment accounts when you create your listings.For example, if you are paid in Euros from your Etsy Payments account, you can simply create all of your listings in Euros to avoid this fee entirely.
Etsy users always see the price of an Etsy item in their local currency (or whatever currency they choose to see), so there’s no reason to worry about creating your listings in another currency, even if you’re selling to a foreign audience (e.g. a UK based seller creating listings for the US Market.
How and When Are Etsy Fees Paid
Except for the $0.20 listing fee, fees for Etsy Onsite (PPC) ads, and any applicable subscription fees, Etsy Fees are charged whenever a sale.
These fees are documented inside of your payment account and are typically removed from the amount Etsy “owes you”.
For example, if you made a sale of $100 on Etsy and all of your fees amounted to $20, you would see a detailed breakdown of each fee and then a line showing the $80 deposit into your payments account ($100 – $20 in fees).
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A Few Examples Of Etsy Fees In Action
I know that Etsy fees can SEEM confusing, mostly because there are a bunch of different fees that are charged as a percentage, but once you’ve calculated your fees on a fee different sales the process becomes VERY simple.
Let’s take a look at two quick examples and you can see how the process works.
Sale From Etsy Search Or Traffic You Drive
The first example we are going to take a look at is one of the most common examples you’ll see when you make a sale.
In this case, we are going to take a look at a sale made from Etsy SEO (someone searching on the Etsy site).
If that sale resulted in a $100 order total (The cost of the product plus any additional services like shipping or personalization), you would see both a transaction fee and a payment processing fee applied to the transaction.
These fees would result in Etsy subtracting $9.75 in fees from the transaction before paying you the remaining balance of $91.25 into your Payment Account.
To calculate profit on this order you would need to also account for the $0.20 listing fee (bringing your payment to $91.05) as well as the product cost.
A Sale From Etsy Offsite Ads
On the other hand, if Etsy is responsible for creating the sale by driving traffic from their offsite ads program, your payout would look a bit different.
In the case of the same $100 sale as above, Etsy would charge us three fees on the order:
A 6.5% Transaction FeeThe Payment Processing Fee (3%+$0.25 for US-based sellers)The Offsite Ads Fee (12-15% depending on your Shop Revenue)
In this case, we can see that the total payout would range from $75.25 – $78.28 depending on how much revenue our shop generates.
So What Percentage Does Etsy Take?
Although the percentage Etsy takes of each sale varies a bit depending on all of the factors discussed in this article, the best rule of thumb is to use 9.5% +$0.25 as the number to calculate what Etsy will take in fees.
This accounts for the two fees that will happen on most transactions (the 6.5% transaction fee and the 3%+$0.25 fee for payment processing).
How Can I Avoid or Reduce Etsy Fees:
Unfortunately, there isn’t a way to completely “avoid” Etsy fees and they need to be looked at as the cost of doing business.
Fortunately, except for the listing fees and any subscriptions you might opt to have, most Etsy fees are only charged when a sale happens, so they are easy to account for in your business.
If you find Etsy fees are cutting into your margins, there are a few things you can do.
The first would be to make sure you always create listings in the same currency you have your payments account set for.
This will allow you to avoid the Currency Conversion Fee completely and save a bit on every transaction.
Secondly, if you find that Etsy fees leave you with no profit, you can either opt for raising your prices or selling higher-margin products.
One of the biggest mistakes we see seller’s making is that they create only ONE product type for their store (e.g. mugs or shirts) and then find it hard to compete on price with people who specialize in those products.
If you’re using the niche-based approach we advocate for, you can list a huge number of different product types and shouldn’t be afraid to list higher-priced (and higher-margin) items.
Remember, we typically average about 40% profit across our store AFTER accounting for all of the costs, including fees and the cost of the product, so it can absolutely be done!
A Quick Recap
While the cost of selling on Etsy will vary from person to person and item to item, the fee structure is pretty straight forward.
A great rule of thumb to quickly estimate the fees for your Etsy item is to simply add the transaction fee and processing fee that apply to you (6.5% + 3%+$0.25 for US Based Sellers) and subtract that from your selling price.
Although this doesn’t account for every situation, it will cover you for the vast majority of your sales.
Chris lives at the intersection of business strategy and growth tactics. Having consulted with dozens of different businesses (as well as building several of his own), he brings a unique perspective on what’s working across the eCommerce world in businesses of all shapes and sizes.
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