If you’re starting an Etsy shop, understanding the platform’s fees is crucial to managing your business effectively. Etsy provides an excellent opportunity for artists and entrepreneurs to reach a global audience, but it comes with costs that sellers need to be aware of.
Etsy’s fee structure can impact your profits in ways that range from listing fees to transaction and payment processing charges. This blog will help you understand what does Etsy charge to sell your products and how these costs affect your bottom line.
Let’s jump right at it!
Table of Contents
TL;DR: Does Etsy Charge To Sell Your Products?
Yes, Etsy charges a listing fee of $0.20, transaction fees of 6.5%, a payment processing fee of 3%+ $0.25 (for US sellers), and other fees depending on the business’s location.
Types of Fees Etsy Charges
We have divided the types of fees into two sections: basic and optional. Basic fees are mandatory, and optional fees include ads, subscription fees, etc.
Let’s look at the basic fees first.
Please note that currency conversion fees, taxes, and regulatory operating fees depend on the region in which your shop is located.
Basic ETSY Fees
A Quick Glimpse Into The Basic Etsy Fees
| Type of Fees | Fees |
| Listing Fees | $0.20 |
| Transaction Fees | 6.5% |
| Multi-quantity Listing Fees | $0.20 |
| Private Listing Fees | $0.20 |
| Regulatory Operating Fee | $0.29 to $2.27 for countries UK, France, Turkey, Italy, India, Spain, and Vietnam |
| Payment Processing Fees | 3% + $0.25 (For US sellers) |
| Taxes: VAT, Sales, Subscription fees | It depends on the country |
| Currency Conversion Rates | 2.5% |
Listing Fees
Etsy charges a $0.20 fee when you upload a new listing. This listing fee is valid for four months or until the listing is sold. Thereafter, it must be renewed.
Auto-renew Sold/Expired Fees: The renewal fee for an item that is sold (or not sold or expired) is $0.20. Etsy automatically sets your listing to auto-renew when it’s sold or expires.
NOTE: You can also turn off auto-renewal in the listings settings and manually renew.
Multi-quantity Listing Fees: Etsy charges $0.20/item for multiple variations of the same product.
Unlike listing fees, which are charged as soon as you list the item on Etsy, multi-quantity fees are charged only when the item sells.
For example, if you have 100 variations of a shirt, you list the item for $0.20. Etsy charges you $0.20 again only when one of the variants is sold. If all 100 items are sold, you will pay Etsy $20.
Private Listing Fees: Etsy charges a $0.20 fee when an item is listed to sell to a single buyer that is not publicly shown.
Transaction Fees
Etsy collects a transaction fee of 6.5% of the total cost of the sale (which means 6.5% of the product price + 6.5% of shipping + 6.5% of gift wrapping). For an Etsy payments user, the fee will be processed automatically when you make a sale.
| What is Etsy Payments? Etsy Payments is a payment method that Etsy offers its sellers to accept payments from their buyers. It applies to sellers in a few countries who must abide by the Etsy Payments policy. |
During sales, if the price is half off, the 6.5% fee is deducted from the customer’s payment and not from the price before the sale.
To know the transactions made on your Etsy shop, go to Etsy Shop Manager > Finances > Monthly Statements.
Taxes
Following are the taxes collected by Etsy:
- US Sales Tax on Subscription Fees: Depending on the state sales tax, taxes may apply on Etsy pattern subscription fees and Etsy plus subscription.
- Sales Tax: Etsy collects tax from buyers and remits sales tax in most US territories (here’s the complete list) to government authorities monthly.
If you’re unsure about the taxes applicable to your state or region, it’s recommended to consult your local tax authority. The sales tax collected is detailed in the Sales and Fees section of your Etsy Payments account under “Sales tax paid by the buyer (Remitted).”
NOTE: You also have the option to opt-out and manage tax remittance yourself. Tax rates may differ based on whether you sell digital products or physical ones. Check which US regional sales taxes apply to your Etsy listings.
Etsy handles VAT and sales tax collection on your behalf and provides a downloadable invoice summarizing the previous month’s fees at the beginning of each month.
- VAT: VAT applies only to sellers in European and select countries. It is applicable to all Etsy fees charged to the seller each month, depending on the business status and location. Here’s how Etsy collects VAT.
Source – Printify
Regulatory Operating Fee
Etsy charges a regulatory operating fee for sellers in certain countries. Etsy started charging this fee as the cost of operations increased in the countries listed below. The fee varies based on the costs of operations, and the fees in each country are as follows:
- United Kingdom – 0.32%
- France – 0.47%
- Italy – 0.32%
- India – 0.29%
- Spain – 0.72%
- Türkiye – 2.27%
- Vietnam – 1.24%
This fee will be shown in your payment account.
Payment Processing Fees
If you use Etsy Payments, the payment processing fee is fixed rate + 3%- 6.5% of the total sale price.
For US sellers, the payment processing fee is 3% + $0.25. For fees in other countries, please refer to the Etsy Help Center for more details.
Here’s what you should know:
A payment processing fee is charged for each transaction made through Etsy Payments, with the fee amount varying based on the bank account’s location. The fee is calculated based on the total sale amount, including taxes and shipping costs, and is deducted from the sale in your payment account.
In some regions, a fixed deposit fee may apply when disbursing funds below a specific threshold.
Deposit fees, if applicable to you, are taken from your available funds and reflected in your account at the time of the scheduled deposit.
For detailed information on fees by country, see the Etsy Payments Policy.
Currency Conversion Fees
If you have enabled a different currency in your Etsy payments and product listing, you will be charged 2.5% of the total sale amount as currency conversion fees.
This is all about mandatory fee charges on Etsy. Let’s look at optional fees.
| If you’re an Etsy seller, you might want to explore the following articles: Best Etsy print-on-demand partners 17 Etsy keyword tools Etsy SEO Tips What is a good conversion rate on Etsy |
Optional Fees
Below are the optional Etsy fees for your shop.
Etsy Ads
Etsy ads work on a cost-per-click model, and the cost ranges between $1 and $25 per day. The higher your bid, the greater your chances of appearing frequently on users’ pages.
Offsite Ads
Etsy offsite ads promote your listings on other platforms like Google, Facebook, Instagram, Pinterest, and more. Unlike Etsy ads, you only pay a fee when a sale is made on offsite ads, which is between 12% and 15%.
These percentages are applied based on the amount your shop has earned in the previous year. For example,
- Less than $10,000/year – a 15% fee of the total sale price.
- More than $10,000/year – a 12% discount on offsite ad fees for any sale attributed to the ad.
Subscription Fees
Etsy has two subscription plans: Etsy Standard (Free) and Etsy Plus, which costs $10/month.
With Etsy Plus, you will get additional features such as:
Customization, credits for listings and Etsy ads, restock requests, and some discounts for purchasing custom web addresses and promotional materials.
Shipping Label Fees
Etsy allows sellers to purchase postage labels for a few countries and locations to deliver the orders. For this, you must choose Etsy Payments or PayPal as payment methods.
The cost of the postage label depends on the delivery company and the package’s origin, destination, weight, and dimensions. Additional fees apply if you add signature confirmation or insurance.
US Sellers who purchase USPS postage return labels will be charged after delivery of the returned package.
You can also avail of custom shipping labels. These labels are available through the carriers below:
- Australia Post
- Canada Post
- FedEx
- Global Postal Shipping
- UPS
- USPS
- Royal Mail & Evri
You can use Etsy’s postage calculator to estimate postage costs. Here’s how:
- Go to Shop Manager > Select Help from the menu > Select Estimate postage costs > Choose between Domestic or International > Enter the required information for your package > Select See rates & discounts.
In-person Selling Fee
For in-person selling, you can use Square Reader to process payments. If you sync your Etsy listings with Square, the charges are $0.20 for multiple quantities (similar to Etsy). If you do not sync listings, the transaction fee is $0.20. Your payment account will show The fees as a “Square manual” fee.
Pattern Fee
Etsy offers a pattern tool to personalize your website. With this tool, Etsy sellers can create a standalone website, automatically sync listings from Etsy shop, and customize the listings.
| Read Also: How to change your Etsy Shop name |
It is free for a month, and after the 30-day free trial, you must pay a monthly subscription fee of $15. Additionally, Etsy charges local taxes (e.g., sales taxes or VAT/GST) depending on the country, which are added to your monthly subscription fee.
For more details, visit Pattern Policy.
How Much Does an Etsy Shop Cost Per Month?
The total cost of running an Etsy shop for a US seller or others depends on several factors, including listing fees, transaction fees, payment processing fees, etc. Here’s a breakdown of each cost and an estimate for small and large shops:
| Read Also: How to manage multiple Etsy shops |
1. Listing Fees: Etsy charges a $0.20 fee per item listed.
Small Shop:
Assume 100 listings:
$0.20 * 100 = $20
Large Shop:
Assume 1,000 listings:
$0.20 * 1,000 = $200
2. Transaction Fees: Etsy charges a 6.5% transaction fee on the total sale price, including shipping and gift wrap.
Example:
Assume the average sale price (with shipping) is $30 per item.
Small Shop:
100 sales, each at $30:
6.5% * $30 * 100 = $195
Large Shop:
1,000 sales, each at $30:
6.5% * $30 * 1,000 = $1,950
3. Payment Processing Fees (For US Sellers): Etsy Payments charges a fee based on your country. For US sellers, the fee is 3% + $0.25 per transaction.
Small Shop:
100 sales at $30:
3% * $30 * 100 + $0.25 * 100 = $90 + $25 = $115
Large Shop:
1,000 sales at $30:
3% * $30 * 1,000 + $0.25 * 1,000 = $900 + $250 = $1,150
4. Taxes
Etsy may collect and remit sales tax on behalf of sellers in most US states. This amount is collected from buyers and may not directly affect your costs. However, if you’re responsible for reporting taxes, you must factor this in.
For this scenario, we’ll assume Etsy collects and remits taxes, so there is no direct tax cost to the seller.
5. Currency Conversion Fees
Assuming all sales are in USD, we’ll exclude this fee from the calculation.
Here are the overall fees for a small and large shop:
Small Shop (100 Sales per month, 100 Listings)
1. Listing Fees: $20
2. Transaction Fees: $195
3. Payment Processing Fees: $115
4. Total (Excluding Taxes & Currency Fees): $330
Large Shop (1,000 Sales per month, 1,000 Listings)
1. Listing Fees: $200
2. Transaction Fees: $1,950
3. Payment Processing Fees: $1,150
4. Total (Excluding Taxes & Currency Fees): $3,300
| NOTE: This is a rough estimate considering only the basic fees charged by Etsy. The costs differ largely if you have over 100 or 1000 listings and monthly sales. Also, these costs don’t involve optional fees such as ads, in-person selling, subscriptions, pattern fees, etc. |
| Read Also: How to promote your Etsy shop |
Etsy Fee Calculator
You can also find various Etsy fee calculators in the market, such as Printify, Alura, ExportYourStore, OmniProfitCalculator, and Craftbase, that give you a close estimation of how much Etsy charges to sell your products and the profits you can make.
| Read Also: Best selling products on Etsy |
Here’s Etsy fee calculator from Craftbase that you can use.
That brings us to our next section on minimizing the Etsy fees.
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Tips to Manage Etsy Fees
If you have already implemented – increasing prices, offering flat-rate or free shipping to save on Etsy fees, here are more advanced tips:
- Avoid Currency Conversion Fees: To do so, set up the same currency in your Etsy payments and product listings. This will save a 2.5% conversion fee on the total sale amount. However, remember that this fee becomes mandatory when selling to international buyers.
- Carefully Choose Items For Ads: If you run ads for all your products, onsite and offsite ads can become costlier. To avoid spending more on ads, choose the best-performing and well-optimized items that give you maximum returns.
- Price Your Products Competitively: When pricing your product, factor in your costs and consider competitor pricing, overhead costs, and profits.
- Bundling Similar Products Together: Batch similar products into one group and offer them as one listing. For example, bundle two shampoo containers together and pay $0.20 rather than listing them separately, which accounts for $0.40.
- Reduce Payment Processing Fees: To reduce the overall fee, consider alternative payment methods like PayPal or Venmo and offer free shipping.
- Switch To Affordable Courier Options: You can do so by:
- Finding courier options that offer discounts on bulk orders.
- Teaming up with other sellers.
- You can also stop catering to countries with bare minimum orders.
| Read Also: How long does Etsy take to ship |
BONUS: How Much Does Etsy Charge to Sell Digital Downloads?
If you offer digital downloads on Etsy, this is for you. The fees differ for selling physical products and digital downloads. Selling digital downloads doesn’t involve shipping postage labels or in-person selling.
So, as an Etsy seller offering digital downloads, here’s an example to demonstrate the costs and fees you might incur.
Let’s say you listed an item, such as clip art, for $3.
- Listing fees: $0.20
- Transaction fees: 6.5% of $3, which is $0.19
- As a US seller, the payment processing fee is 3%+$0.25, which is 0.34
- Total fees by Etsy is $0.73 (which is 24.3% fees to Etsy)
When you look at the percentage, it is a lot, so to minimize the charges, here’s what you can do:
Bundle stickers together and sell them for a higher price. For example, you can bundle ten stickers and charge $15, reducing Etsy fees.
| NOTE: VAT on digital items is different from VAT on physical items. Below are the countries where VAT is applicable on the sale of digital items delivered via automatic download to buyers: Australia Belarus Chile the EU Georgia (country) Iceland India Indonesia Kenya Malaysia Mexico Moldova New Zealand Norway Québec (Canada) Russia Saudi Arabia Serbia Singapore South Africa South Korea Switzerland Taiwan Thailand Türkiye Ukraine the United Arab Emirates the United Kingdom Vietnam Etsy will automatically collect VAT from the buyer if you use Etsy Payments. The VAT costs are added to the seller’s Payment account for transactions made with the seller’s stand-alone PayPal account. |
| Read Also: How to sell art on Etsy & How to sell Canva templates on Etsy. |
Verdict: Is It worth Selling On Etsy?
It can be worth it if you:
- Sell unique, handmade, or personalized products that align with Etsy’s core audience.
- Price your products strategically to cover the fees while maintaining a competitive edge.
- Utilize Etsy’s built-in marketing tools to boost your shop’s visibility.
- Are comfortable with Etsy’s fee structure and have accounted for it in your profit margins.
- Abide by Etsy’s policies, including creativity standards, payment policies, etc.
If you’re just starting, Etsy can be a great platform with access to over 95.1 million active buyers and involves minimal upfront costs compared to building your website.
However, the fees can be substantial for established businesses, or those with tight margins, and other platforms like Shopify might offer more flexibility and control.
FAQs
How much does Etsy charge to sell?
Etsy has a listing fee of $0.20, a transaction fee of 6.5%, a payment processing fee of 3% + $0.25, and other region-specific fees like VAT, currency conversion fees of 2.5%, and regulatory operating fees.
Does Etsy charge to have a shop?
No, you can open a shop on Etsy for free. However, listing and selling products has costs.
How do I avoid seller fees on Etsy?
You cannot avoid seller fees, but you can reduce them. You can offer free shipping to reduce Etsy fees, which helps reduce payment processing fees. Adjust your prices to offset Etsy’s fees, and evaluating lower-cost or discounted shipping options can further reduce expenses. Partnering with others to share shipping and packaging costs and limiting the countries you ship to can also help minimize fees.
Does Etsy charge the seller for shipping?
No, the buyer must pay for the shipping. However, sellers are responsible for shipping the item to customers.
Does Etsy charge a monthly fee to sell?
You will incur monthly fees if you have subscribed to Etsy Plus, a pattern tool, etc. Otherwise, Etsy charges for listing, transactions, and payment processes.
Does Etsy have hidden fees?
There are no hidden fees apart from the listing fee, transaction fee, payment processing fee, and, in some cases, cashew currency conversion fees, taxes, or regulatory operating fees. As an Etsy seller, you must know the Etsy fee structure, including Etsy ads and other marketing tools.
How much does Etsy take from the $100 sale?
The following are the fees taken from the $100 sale amount. Listing Fee: $0.20, transaction Fee: $6.50, payment processing fee: (3% + $0.25) is $3.25. Total Fees: $0.20 + $6.50 + $3.25 = $9.95. Etsy would take $9.95 in fees from a $100 sale, leaving the seller with $90.05.
