Etsy fees can confuse shop owners, with numerous charges and hidden costs that might reduce your profits if overlooked.
We will break down the most common fees that Etsy charges, giving you a clear understanding of the true costs of selling on the platform.
What fees does Etsy charge?
Etsy charges various fees that sellers need to consider, including setup costs, listing and transaction fees, payment processing fees, and optional expenses like subscriptions and ads. Additional charges, such as currency conversion and offsite ad fees, can significantly impact your profits. Understanding these costs helps you accurately calculate the true expense of selling on Etsy. You can check the full Etsy article on their website on What are the Fees and Taxes for Selling on Etsy
In below we are going to point out the most common Etsy costs and they are as follows.
1. Launching new Etsy store
- One-time shop set up fee
When you open your Etsy shop, you may need to pay a one-time setup fee. If applicable, Etsy displays and charges this fee during the shop setup process.
During onboarding, Etsy initiates a pending transaction on your card after you confirm the charge. This transaction is processed once onboarding is complete, your shop is open, and you can receive orders. By providing your card information and approving the setup fee, you authorize Etsy to charge your designated payment method.
The one-time setup fee is non-refundable. Etsy reserves the right to adjust or change the fee at its discretion. In certain cases or promotional periods, Etsy may waive the fee.
The setup fee excludes applicable taxes. Depending on your bank account location, additional taxes may apply, following local regulations. Etsy reflects any applicable taxes in your payment account and deducts them from your sales. Refer to the Taxes and Currency Conversion sections below for more details.
2. Sales and listings costs
- Listing fee
Etsy applies a flat fee of $0.20 for every product or listing you add to your shop, covering both physical and digital products.
When you sell a product and decide to keep it in your shop, you pay the $0.20 listing fee again for each item sold.
For example, if a customer buys three items from your shop, you pay $0.60 in listing fees.
Listings expire after four months. If a product doesn’t sell and you want to keep it in your shop, you renew the listing and pay another $0.20.
You can renew it manually or set it to renew automatically.
- Transaction fee
Starting April 11, 2022, Etsy charges a 6.5% transaction fee on the final price of each sale. This fee applies to the total amount, including any discounts, shipping, product customizations, and gift wrapping.
Etsy has increased transaction fees twice over the years:
- On July 16, 2018, the fee rose from 3.5% to 5%.
- On April 11, 2022, the fee increased from 5% to 6.5% until now.
- Payment processing fee
Most Etsy sellers use Etsy payments to receive money from customers. This system allows your to accept various payment methods, including credit cards, debit cards, Apple Pay, bank transfers, and Etsy gift cards.
Sellers in one of 36 eligible countries, including the US, UK, Australia, and Canada, must use Etsy Payments.
The fee depends on the location of your bank account. For most US sellers (or those with US bank accounts), Etsy charges a payment processing fee of $0.25 + 3% of the final price, including shipping, customizations, and gift wrapping.
If you are not in an eligible country, you can use PayPal to accept payments, which offers comparable processing fees.
- Currency conversion fee
Etsy charges a 2.5% currency conversion fee if the listing price currency differs from the currency of your payment account.
3. Optional costs
- Subscription (Etsy Plus) fee
Etsy Plus is a $10 monthly subscription that offers several benefits to sellers:
- Customize your shop front with extra banner types and featured listing layouts.
- Enable restock requests to inform customers about sold-out items.
- Receive 15 listing credits each month ($3 value).
- Get $5 Etsy ads credit every month.
- Enjoy a free .store domain or 50% off .com and .net domains.
- Access discounts on packaging and promotional materials, including business cards and custom shipping boxes.
By using the listing credits and Etsy ads credit, you essentially pay just $2 for the additional features. For busy shops with one-of-a-kind or limited-quantity items, the restock request feature helps keep customers updated. Shops that take advantage of discounts on custom boxes and printed materials can also find Etsy Plus well worth the investment.
- Etsy Ads (promoted listings) fee
Etsy ads or promoted listings in the past are fully optional, and you only pay when shoppers click on your ads (pay-per-click system). Charges are not based on views or sales. Etsy now sets the click cost, so you can’t bid on it. However, you can choose which listings to promote and set a daily budget. On average, sellers spend about $0.20–$0.50 per click for Etsy ads. If you want to know more about the how the Etsy Ads works make sure to check our article on How Do Ads Work On Etsy?
If you are looking on ways how to optimize your Etsy Ads costs you can check our monthly service packages.
4. Costs when a certain criteria is met.
- Offsite fee
Offsite ads work differently from Etsy's promoted listings - you only pay when a shopper clicks the ad and makes a purchase. These ads appear on platforms like Google, Facebook, Instagram, and others.
While you don’t pay for clicks that don’t result in sales, the downside is the high fee for offsite ads. Sellers earning over $10,000 in the past 12 months pay a 12% fee, while all other sellers pay 15%. For those earning over $10,000 in the last 12 months, participation in offsite ads is mandatory and cannot be opted out of.
How Much Does Etsy Take?
Etsy fees typically account for about 20% of most sellers’ total costs, a significant amount that’s easy to underestimate. This became more noticeable after the transaction fee increased from 5% to 6.5% in April 2022. Generally, higher-priced items result in a smaller percentage of Etsy fees compared to the product price.
Remember to factor in additional charges, such as Etsy ads and currency conversion fees. If a sale is attributed to an offsite ad, Etsy’s fees can increase by another 15%, potentially bringing the total fees to around 35% of the product price.
Final thoughts
Etsy fees can significantly impact your profitability if not properly accounted for. By understanding the various charges, such as setup fees, listing and transaction costs, payment processing, currency conversion, and optional expenses like subscriptions and ads, you can plan more effectively and manage your shop's finances better. Remember, while Etsy offers great tools and exposure, staying informed about these fees ensures you maintain control over your profit margins.
