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Sarah Waggoner

Breaking Down Etsy’s Fees: Is There a Monthly Charge to Sell?

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If you’re thinking about selling on Etsy, it’s important to know what their fees look like. So does Etsy charge a monthly fee to sell on the platform? Let’s clarify what you’ll be charged in fees as an Etsy seller.

Is there a monthly charge on Etsy?

There are a variety of fees on Etsy. Some of these are required to sell on the platform and some are optional. Etsy has no required monthly fees, however.

Now that you know that, let’s talk about each of the fees that Etsy requires in more depth.

Listing fees on Etsy

When you list an item for sale on Etsy, you are charged a listing fee. Currently, the cost to list an item on Etsy is $0.20 per listing, and it is valid for four months or until you sell the product. This fee allows you to showcase your products to potential buyers on the platform. If your listing doesn’t sell within four months, you can choose to renew the listing for an additional $0.20.

It’s important to note that the listing fee is per quantity, not per item. This means that if you have multiple quantities of the same item, you will pay multiple listing fees. These will show up on your bill as a multiple-quantity fee or an auto-renew fee.

Transaction fees on Etsy

In addition to the listing fee, Etsy charges a transaction fee on each sale made through the platform using Etsy Payments. The transaction fee is calculated as a percentage of the item’s sale price, including shipping costs. Currently, the transaction fee on Etsy is 6.5% of the total sale price. This does include shipping charges for each sale, which helps make the system fair for sellers who use offer free shipping.

Payment processing fees on Etsy

Apart from the listing and transaction fees, Etsy also charges payment processing fees. The payment processing fee varies depending on the location of your shop and the currency used for the transaction.

In the United States, the payment processing fee is 3% + $0.25 per transaction. This fee covers the costs of payment gateway fees and ensures secure and convenient transactions for both buyers and sellers.

If you’re located outside of the US, click here to see what Etsy’s payment processing fees are by country.

Additional fees on Etsy

While the listing, transaction, and payment processing fees are the main components of Etsy’s pricing structure, there may be additional fees depending on the services you choose to use. For example, if you opt for Etsy’s advertising services to promote your listings, you may incur additional advertising fees.

The optional fees on Etsy include:

  • Onsite advertising fees
  • Offsite advertising fees
  • Etsy Plus
  • Etsy Pattern

Etsy fees vs. other online marketplaces

When considering selling on Etsy, it’s natural to wonder how its fees compare to other online marketplaces. While each platform has its own fee structure, it’s important to take into account the unique features and audience of Etsy.

Compared to other online marketplaces, Etsy’s fees are generally competitive. Etsy charges on average 10% of the total sale price for each transaction. Compare that to Amazon, where fees can be 15% to 30% or more.

If you want to compare Etsy to hosting your own website on Shopify, its important to remember a few things. Yes, the fee per sale is lower on Shopify with only a transaction fee, however, Shopify is not a marketplace. There is no customer base that Shopify is sending to your website. You need to drive all of the traffic yourself, which can be difficult unless you have a large following on social media.

It’s also important to remember that Shopify does charge a monthly fee which starts at $29/month. While that gets you a basic website, it’s easy to rack up additional monthly charges if you want to use apps to help you create variations, manage shipping calculations, or help you track inventory.

Tips for managing Etsy fees

While Etsy fees are low compared to the traffic the marketplace can bring you, it is important to think about how you can continue to keep fees manageable in your shop. Here are my best tips for lowering your Etsy fees:

  1. Skip Etsy Plus unless you are already getting a lot of traffic. Learn more about Etsy Plus and how to know if you’re ready for it here.
  2. Don’t pay for onsite ads unless you can run them profitably. A lot of newer sellers will use ads just to get traffic, but traffic doesn’t matter if your listings aren’t converting. Only pay for ads if have a plan for making them profitable.
  3. Use offsite ads. Offsite ads are a risk-free way to reach new buyers. Learn more about them here.
  4. Price your products appropriately. No amount of budgeting can fix your business if you aren’t pricing your products the way you should. Increase your prices and decrease supply costs as needed.

Conclusion

Now you know that Etsy does not charge a monthly fee to sell on the marketplace. Their required fees are very reasonable when you’re pricing your products appropriately and considering the amount of traffic that they can bring your business.

If you aren’t getting enough traffic to make Etsy worth it for your business, you want to focus on filling your product lines and improving your search engine optimization (SEO) to increase organic visits.

Learn more about how to do that in my free masterclass.

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About Author:
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Sarah Waggoner is a full time Etsy Seller with over $700,000 in sales. She helps handmade and digital sellers get daily sales on Etsy without all the complications.

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