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Sarah Waggoner

Etsy is one of the best places for handmade sellers to sell their products when you compare their fees with the amount of traffic they can bring you. With over 95 million buyers annually and Etsy seller fees generally around 10% of your buyer’s total sale price, selling on Etsy is much cheaper than Amazon and has way more traffic compared to smaller marketplaces. So how much is the Etsy fee per sale? Let’s talk about how much you’re paying to sell on the platform.

What Are the Different Types of Etsy Fees?

Required Etsy fees including listing fees, transaction fees, and payment processing fees

While it may seem confusing at first, Etsy fees are fairly simple. Here’s what you’re paying with each sale:

  • Listing fee (includes auto-renew fee and multi-quantity listing fees)

  • Transaction fee

  • Payment processing fee

While there are other optional Etsy fees, these are the important ones to know about. Let’s dive deeper into each fee type in the next few paragraphs. Then we’ll cover optional Etsy fees.

What is Etsy payments?

Etsy payments is the way Etsy helps sellers to process payments on the platform. While Etsy Payments enrollment used to be optional, it’s not required to open a shop in most countries.

Etsy payments helps you accept payments from customers. Your cash is then held in your payment account and then can be deposited into your bank account as requested either monthly, weekly, or daily.

You do need at least $25 in your payment account to transfer the money to your bank account.

Listing Fees

The initial listing fee on Etsy is $0.20 per listing. This is applicable for all listings including both physical and digital products. You pay a listing fee whether you make a sale or not. Listings expire after 4 months or when your listing sells, whichever comes first.

Multi-quantity listing fees and auto-renew fees are related to your regular listing fees and can be confusing for sellers.

Think of your listing fee as applying whenever you sell one product in a listing.

You’ll pay a multi-quantity listing fee if you have your inventory for a listing set higher than 1. You can think about this fee as a listing fee that is charged to keep a listing active after you sell it. If you have 10 of one listing available, you’ll pay $0.20 to list that product, then an additional $0.20 to keep it listed after you sell one.

If a buyer purchases multiple quantities in one sale, you will be charged $0.20 for each item purchased.

Auto-renew fees are charged after your first four months have expired. They’re only charged if you have auto-renewal on. If not, your listing will expire and will not be able to be visited or purchased on Etsy until you renew and pay your listing fee again.

Private listing fees aren’t charged until a buyer completes their purchase. The fee for a private listing is the same as your normal listing fee of $0.20. Private listings are also subject to the normal transaction fee and payment processing fee.

Transaction Fees

Transaction fees on Etsy are 6.5% of your buyer’s total purchase price. This includes the item cost plus shipping and gift wrapping if applicable.

Prior to 2018, Etsy didn’t include the shipping cost when calculating your transaction fees. This changed in 2018 because some sellers were charging very little for their products, but high shipping costs to avoid transaction fees. This made for a poor buying experience, because no customer likes to be surprised with high shipping fees at checkout.

Etsy has increased the transaction fee for sellers twice since 2016. They increased most recently in 2022 to fund additional advertising for Etsy and more seller support and customer service.

Payment Processing Fees

Payment processing fees for your Etsy shop are charged to any sellers that use Etsy Payments. The payment processing fees vary by country. In the United States, Etsy payment processing fees are currently 3% plus $0.25.

For sellers located outside of the US, you can find your country’s payment processing fees here.

Next, let’s move on to the optional fees that exist for selling on Etsy.

Optional Etsy Fees

Etsy Ads Fees

There are multiple ways to advertise on Etsy. Onsite ads (previously known as promoted listings) and offsite ads. You are charged differently for both methods of advertising.

Onsite Ads

Onsite ads on Etsy are always optional. These are pay-per-click ads, that you are charged for when a buyer clicks on one of your advertisements shown in the search results on Etsy. Learn more about these ads here.

The cost of each click varies by keyword. High-demand keywords with less competition will be cheaper than highly competitive keywords with a lot of sellers trying to bid for the same searches.

You can, however, set a daily budget that is very predictable. This makes it easy to budget for these ads.

Do remember that Etsy ads aren’t required to run a profitable business to get a lot of sales. They can be a very effective way to scale your business when you’re ready for them, however.

Offsite Ads

Offsite ads are optional only if you’ve made less than 10,000 USD on Etsy in the last 12 months. After you’ve made more than that, you are required to participate.

You are only charged for offsite ads when you make a sale through the program. The fee will be either 12% or 15% of the total sale price.

While this can seem like a high advertising fee, offset ads are cheaper and less risky than running social media ads on your own and will most likely be a very small percentage of your total sales made on Etsy.

You can learn more about offsite ads and how to make them work for you here.

Sales made through Offsite Ads are also subject to the normal Etsy Payments fees including the transaction fee and payment processing fee.

Currency Conversion Fee

Etsy payments users are charged a currency conversion fee if the payment account currency is not the same as the currency you have listed in. I recommend learning more about currency conversion fees in this article under “Third Party Services.”

Shipping Fees

Shipping fees are charged when you purchase shipping labels on Etsy. While you aren’t required to purchase your labels through Etsy as a platform, it is usually easier and cheaper to do so.

Etsy’s shipping labels are cheaper than purchasing them directly from the post office. They will also automatically report the tracking information to your buyer.

Purchasing labels on Etsy also means you can use first-class mail with tracking up to 16 oz (vs 13 oz at the post office). You are required to have tracking on your shipments in order to be eligible for Star Seller, so this can be incredibly helpful for your account.

Etsy Plus

Etsy plus is another optional fee on the platform. Be careful with the reasons for signing up for this subscription. Etsy Plus does not help your products rank better, and therefore does not help you get more sales on Etsy.

There are, however, a number of benefits you can read about here. These benefits do include a Etsy ads credit as well as listing fee credit.

Etsy Plus is $10/month before you account for the credits included.

Etsy Pattern

Like Shopify or WordPress, Etsy Pattern is a way for you to easily have your own website. Etsy uses your listing data and let’s you customize your own domain.

There are a variety of reasons why I don’t recommend using Pattern for your website, but if you choose this option it’s only $15/month which is very reasonable.

Learn more about Pattern here.

There is no monthly subscription fee for Etsy if you do not use Etsy Pattern or Etsy Plus.

Etsy Fees vs Amazon

Amazon’s fees are higher than Etsy’s.

There are two ways for you to sell on Amazon. The first is Amazon Handmade. These accounts are charged a 15% fee on every transaction. There is no listing fee on Amazon Handmade.

Unfortunately, Handmade accounts can have a harder time gaining traction for most sellers. Amazon is known for its Prime service which allows for quick shipping to their customers. The majority of customers will choose to search the platform for only listings that use Prime shipping. So in order to get a lot of sales on the platform, it is recommended that you participate in Prime shipping. As a seller, this is called Fulfilled by Amazon, or FBA.

Fees for FBA vary greatly. You are charged a storage fee for your merchandise, which varies by how much space your products take up.

You are also charged shipping fees to send your products to Amazon and fulfillment fees when you make a sale. There are a variety of other, smaller fees. You can learn more about those here.

In the end, Amazon fees can end up being 15 to 45% of your total sale price when using FBA.

Etsy Fees vs Shopify

While Shopify isn’t a marketplace, many Etsy sellers see it as an alternative to selling on Etsy in hopes of avoiding Etsy’s transaction fees.

Shopify has a variety of plans, the cheapest of which is $29/month. The payment processing fees for this plan are 2.9% plus $0.30 per sale. There is no transaction fee for Shopify.

Unfortunately, because Shopify isn’t a marketplace, you will be responsible for bringing all of your own traffic to your website. This can make Etsy fees look a lot more attractive since it can be so much easier to get traffic.

Taxes

Etsy will collect and remit sales tax for most states. To see if your state is included, click here.

Don’t forget to include your personal taxes when considering selling on Etsy and how much you’ll need to pay in fees. While taxes aren’t really an Etsy fee, they are something that needs to be considered when factoring in your pricing and profit.

How to Get Profitable

No matter what platform you sell on, it’s important to have a plan for profitability. If you have an Etsy shop that isn’t profitable, despite making some sales, let’s talk about how to fix that. You’ll want to focus on accounting for every Etsy fee that you’re charged for. You can do that in two ways.

Increase prices

The first thing you need to look at is increasing your product price. This can be stressful as a handmade seller, but I want you to remember that competing solely on price on Etsy is not a competition that you will ever win.

There will also be sellers charging less than what you charge. So you need a plan for showing your product value in a way that reflects the price you charge.

Professional-looking photography, short processing times, easy personalization, and excellent customer service are all ways to stand out even if you aren’t priced the lowest.

Decrease costs

There are, of course, a lot of ways to decrease the costs of making your products. Try one of these suggestions:

  • Buy supplies in higher quantities to get larger discounts and decrease the relative shipping cost

  • Purchase supplies from overseas

  • Decrease overhead costs by doing your own photography, inventory tracking, and buying used machinery

  • Rent equipment instead of buying

While decreasing your production costs won’t lower your fees, it can help you to be more profitable.

What Not To Do:

There are a few mistakes you want to avoid when it comes to lowering your fees and getting more profitable. Let’s talk about those now.

Fee avoidance

It might seem easy to ask Etsy customers to purchase on your website to decrease fees, but this is fee avoidance and is against Etsy’s Terms of Service.

Etsy does monitor convos for language that suggests fee avoidance, so avoid asking customers to go to your website in your convos as well.

If you’re going to sell on Etsy, consider including your fees in the price of your products so you can remain profitable with each sale.

Start ads before you’re ready

A lot of sellers fall into the trap of using Etsy ads to increase traffic before they’re ready in an attempt to get more sales and become profitable.

Unfortunately, if you aren’t making sales already, Etsy ads are usually not effective.

Before starting ads, make sure you are ready by optimizing your SEO and your conversion rate.

What happens if you run a sale?

If you run a sale, you’re charged fees based on the item’s total sale price, not the original listing price.

Conclusion

To sell on Etsy, you need to plan for a listing fee, transaction fee, payment processing fee, shipping fee, and more with each sale. Consider the cost of Etsy ads or Etsy offsite ads in addition to the normal fees charged by the platform.

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About Author:
portrait of Sarah Waggoner

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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