What’re the Fees for Selling on Etsy?

Etsy is one of the larger online marketplaces in the US — bringing in over 200 million visitors every single month with intent to purchase from sellers just like you. As a seller, you’re able to tap into this market without having to invest in building your own website or shop and driving traffic to it. This can save you months or even years worth of time, in addition to thousands of dollars. In exchange for letting you sell on it’s marketplace, Etsy takes a small(ish) fee. So what exactly are the fees to sell on Etsy? Let’s take a look.

There are several types of fees that Etsy will charge:

Listing Fees
Transaction Fees
Payment Processing Fees
Advertising Fees

Etsy Listing Fees

Etsy charges a $0.20 “listing fee” for each item listed which is paid regardless of resulting sales and lasts 4 months or until the item is sold. When an item is sold, you can have your listing “auto-renew” at the cost of an additional $0.20 which will last another 4 months. And if you haven’t sold a single item after the 4-month period, you can have your listing “auto-renew” at the same $0.20 per listing fee which will buy you another 4 months.

Multi-quantity listing fees: If a customer buys more than one unit of the same product in a single transaction, Etsy will charge an additional $0.20 listing fee per unit. For example, if a customer buys 3 units of the same item, you’ll incur $0.60 in listing fees on the transaction.

Etsy listing fees can effectively be viewed as transactional fees in most cases since most fees occur when an order is placed but Etsy has a separate classification for “transaction fees”.

Etsy Transaction Fees

Etsy charges a per transaction fee of 5% of the total price you charge your customer for an item, including the shipping price you charge, customization, and gift wrapping.

For example, if you sell a t-shirt for $30 and charge $5 for shipping and $3 for gift wrapping, Etsy will take 5% of $38 ($30 + $5 + $3) which equates to $1.90 in transaction fees paid to Etsy.

Etsy Payment Processing Fees

There are two primary payment processing options for US Etsy sellers: Etsy Payments and PayPal.

Etsy Payments charges 3% plus $0.25 for each transaction and PayPal charges the standard 2.9% plus $0.30 for each transaction.

Etsy Advertising Fees

Etsy has two types of advertising fees: Offsite Ads and Etsy Ads.

Etsy Ads

Etsy Ads is an optional service sellers can leverage. Since it operates on the PPC (pay-per-click) model, pricing will vary based on keywords and their respective demand, so there is no standard free schedule. Etsy allows you to set a maximum daily budget to ensure you’re not spending more than you’d like and that your ad spend isn’t running out of control.

Offsite Ads

Etsy’s Offsite Ads program was rolled out in early 2020 and has been controversial, to say the least. All sellers are automatically enrolled and only sellers that are generating less than $10,000 annually can opt out of the program. However, the program is mandatory for sellers that are generating more than $10,000 annually. This means your fees paid to Etsy will very likely be increasing and hopefully your revenue will too, although there is no guarantee of increased revenue.

If your revenue is less than $10,000 in the last 365 days, you will be charged 15% of all sales generated through Etsy’s Offsite Ads program. If your revenue is $10,000 or more in the last 365 days, you will be charged 12% of all sales generated through the program.

How to Calculate your total Etsy Fees

Let’s say you sell handmade backpacks for $100 on Etsy and you charge $10 for shipping. The product costs you $35 to make and $5 to ship to the customer. The customer purchases using Etsy Payments and does not purchase through any type of Etsy Ad.

Etsy Fee Type	Etsy Fee Structure	Fees
Listing Fee	$0.20 per listing	$0.20
Transaction Fee	($100 + $10) * 5%	$5.50
Etsy Payments	($100 + $10) * 3% + $0.25	$3.55
Total Fees Paid to Etsy		$9.25

If you add your shipping cost ($5) and cost of goods ($35) to the $9.25, you’ll arrive at a total cost of $49.25. If you subtract your total cost of goods sold from your sale price of $110, you’ll land at a profit of $60.75 which is a 55.23% profit margin. That’s not too shabby!

To make calculating your fees and profit easier, we made this a simple and easy to use Etsy Fee Calculator

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