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Some entrepreneurs may feel that Etsy fees prevent them from turning their passion into a bonafide career. However, others feel Etsy offers them the audience they need to grow, thus don’t mind the extra cost of using the online marketplace. In this article, we explore everything you need to know about Etsy’s seller fees, including tricks to lower these fees. By the end, you’ll be able to determine the side of the Etsy fees debate into which you fall.
What Are the Different Types of Etsy Selling Fees?
When starting your eCommerce business on Etsy, the fees can feel overwhelming. Take a look at our breakdown of Etsy seller fees below:
Listing fee
Etsy’s listing fee is a $0.20 flat-rate charge incurred on every item—physical and digital products—your business lists for sale. This fee is good for four months. If your product doesn’t sell within that timeframe or is still available after four months (if you have a large quantity attached to one listing), you will pay an additional $0.20 to keep the listing active.
Additionally, your item’s listing “renews” every time you sell an item. For example, if you have a quantity of 99 products attached to one listing, you pay the listing fee for each of the 99 sales.
Transaction fee
You will likely see the bulk of your Etsy seller fees comprised of the transaction fee. Etsy’s transaction fee costs your business 6.5 percent of the final sale price of an item. It’s also worth noting that Etsy increased its transaction fee from 5 percent to 6.5 percent on April 11th, 2022. This transaction fee is shockingly high compared to average credit card processing fees seen across other payment processors.
Payment processing fee
Etsy charges a processing fee when you make a sale using Etsy Payments. Etsy Payments, a feature available in 36 countries, is Etsy’s payment gateway. With Etsy Payments, businesses can accept a wide range of payment options like Apple Pay, debit and credit cards, Etsy gift cards, and others. Without Etsy Payments, your customers only have the option of PayPal for checkout.
The Etsy Payments fee is comprised of a flat $0.25 per transaction and 3 percent of the sale amount.
Auto-renewal fee
Etsy’s auto-renewal fee is simply the listing fee when it auto-renews after four months. As previously mentioned, the listing fee of $0.20 is valid for four months. After four months, Etsy automatically renews your listing for an additional $0.20.
In-person selling fee
Etsy allows in-person sales if you have an account with Square. The cost of using Square is $0.10 and 2.6 percent per transaction for swiped transactions or $0.15 per transaction and 3.5 percent for card-not-present payments. Fortunately, in-person transactions processed through Square do not incur the 6.5 percent Etsy transaction fee.
Advertising fees
Etsy offers two types of advertising: Etsy ads and offsite ads. Etsy ads give you complete control by allowing you to opt in and set daily budgets. These ads run through Etsy’s website and mobile app. Sellers can expect to pay anywhere between $0.02 to $0.05 per click.
Through Etsy, you can set up offsite ads that run through different networks like Instagram, TikTok, and Google. Etsy only charges you when someone makes a purchase through the ad or if the customer makes a purchase within 30 days after clicking on the ad.
It’s important to note that Etsy requires you to pay for the offsite ad program if your Etsy shop makes $10,000 per year or more.
Currency conversion fee
If you sell globally, your customers may make a purchase in their local currency. To pay you in your local currency, Etsy charges a currency conversion fee of 2.5 percent.
This fee occurs only when you list items in a different currency than the currency of your bank account. Because of this fee, Etsy recommends you list your pricing with the same currency as your bank account.
Regulatory operating fee
Etsy’s regulatory operating fee was issued to certain countries due to increased operating costs. Like other Etsy fees, this fee is an added percentage based on the total sale price including shipping. Countries and their associated regulatory fee amount are as follows:
- France: 0.4%
- Italy: 0.25%
- Spain: 0.4%
- Turkey: 1.1%
- United Kingdom: 0.25%
Pattern fee
Etsy Pattern is a web-building software that enables you to connect a personalized website to your Etsy seller account. Upon signing up, you get a 30-day free trial, after which Pattern costs $15 monthly.
A significant benefit of Pattern is that if want to include an Etsy-listed product on your Pattern website, you don’t have to pay additional listing or renewal fees.
Shipping fee
Shipping costs depend on many factors, including the destination, size of the package, weight of the package, carrier, and origin of the shipment. As a seller, you have the option to purchase shipping labels through Etsy directly. In doing so, you’ll pay 5 percent on top of the shipping cost.
Multi-quantity fee
Etsy’s multi-quantity fee applies when you sell multiple items from one listing in a single transaction. If a customer purchases one item, you pay the $0.20 listing fee. However, if your customer purchases multiple items from the same listing in a single transaction, you pay the $0.20 listing fee per product purchased.
Etsy Pricing Plans
For sellers, Etsy has two pricing plans: Standard and Plus.
Etsy Standard pricing plan
This is the most popular option for new businesses because it includes a free seller’s account. You will have access to basic tools to help you sell your product.
Etsy Plus pricing plan
For mid- to large-sized businesses, the Etsy Plus plan costs $10 per month. This plan provides customization tools for your shop, as well as credits and discounts on Etsy services. These services include:
- Discounted web addresses
- Discounted promotional items
- 50% discount on “.com,” “.net,” and “.ca” domain extensions
- Free “.store” domains
- $5 in Etsy ad credits each month
- 15 listing credits each month, saving you $3 a month
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Etsy Fee Examples
To help you digest the above information, below are examples demonstrating how Etsy fees impact sellers.
Example 1
A custom baseball hat is sold to a buyer in New York from an Etsy seller in California.
- Product Price: $10
- Shipping: $3
- Sales Tax: N/A
- Total: $13.00 in gross revenue
No ads were used to make this sale, but the customer checked out using their debit card, so the Etsy Payment fees apply. Here’s how the fees are calculated:
- Listing Fee: $0.20
- Transaction Fee: 6.5% x $13 = $0.85
- Etsy Payments Fee: $0.25 + 3% x $13 = $0.64
- Shipping Cost: $3
- Shipping Fee: $3 x 5% = $0.15
- Total: $4.84 in Etsy seller fees
This Etsy seller made $8.16 in net revenue.
Example 2
A custom baseball hat is sold to a buyer in California from an Etsy seller in California with a customization fee added to the transaction.
- Product Price: $10
- Customization Fee: $2
- Shipping: $3
- Sales Tax: 9% x $12 = $1.08
- Total: $16.08 in gross revenue
No ads were used to make this sale, but the customer checked out using their debit card, so the Etsy Payment fees apply. Here’s how the fees are calculated:
- Listing Fee: $0.20
- Transaction Fee: 6.5% x $15 = $0.98
- Etsy Payments Fee: $0.25 + 3% x $16.08 = $0.73
- Shipping Cost: $3
- Shipping Fee: $3 x 5% = $0.15
- Sales Tax Remittance: 9% x $10 = $1.08
- Total: $6.14 in Etsy seller fees + sales tax remittance
This Etsy seller made $9.94 in net revenue.
Example 3
A custom baseball hat is sold to a buyer in California from an Etsy seller in California with no customization fee, but with offsite ads.
- Product Price: $10
- Shipping: $3
- Sales Tax: 9% x $10 = $0.90
- Total: $13.90 in gross revenue
The customer checked out using their debit card, so the Etsy Payments price applies. Also, offsite ads were used to make this sale. Here’s how the fees are calculated:
- Listing Fee: $0.20
- Transaction Fee: 6.5% x $13 = $0.85
- Etsy Payments Fee: $0.25 + 3% x $13.90 = $0.67
- Offsite Ads: 15% x $13 = $1.95
- Shipping Cost: $3
- Shipping Fee: $3 x 5% = $0.15
- Sales Tax Remittance: 9% x $10 = $0.90
- Total: $7.72 in Etsy seller fees + sales tax remittance
This Etsy seller made $6.18 in net revenue.
How Do You Pay Etsy Fees?
When Etsy sends you a deposit, all Etsy seller fees are already taken out. If you don’t have enough sales revenue to offset the fees incurred on your listings, Etsy automatically debits your bank account.
Tips for Saving on Your Etsy Fees
As you can see, Etsy fees can add up quickly. If you don’t account for these fees, you risk operating at a very slim profit margin or, worse, a loss. To help your bottom line, take a look at our suggestions to help you save on your Etsy seller fees:
Increase your prices
If your business has steady sales, consider changing up your pricing strategy. Although the percentage of Etsy fees you’re charged will stay the same, higher pricing means larger profits.
Try flat-rate shipping
With flat-rate shipping, the cost of shipping all items or multiple items is the same. If you have a standard shipping rate, you can include that in your product pricing and advertise free shipping. An added bonus: Free shipping has been proven to increase sales.
Bundle your items
Bundling items together, such as soaps, paints, or holiday cards, and listing them together incurs only one listing fee. So, selling five soaps as a bundle costs you a $0.20 listing fee, instead of the $1 fee to individually list five soaps.
You may also consider shipping items ordered by the same customer within one box to save on overall shipping costs.
Strategize before advertising
Etsy ads don’t ensure sales; they just put your product higher in the search results. Before you agree to ads, make sure your listing is optimized with trending keywords and enticing photos. Otherwise, you’ll add costs to a listing that may not convert to a sale.
Consider your own online store
If the costs of selling on Etsy seem exploitative, you’re not alone in this assessment. Once Etsy sellers recognize the costs of this marketplace, many look for alternatives to Etsy.
One such alternative is obtaining a merchant account and selling on your own eCommerce web platform. eCommerce businesses benefit from merchant accounts due to the average costs being lower than Etsy seller fees. Additionally, there are many ways to lower your processing fees with a merchant account.
Final thoughts on Etsy’s Fees
Starting your own business is incredibly exciting! Of the many platforms on which you may sell your products, Etsy can be a great choice. However, the many fees associated with Etsy can eat away at new entrepreneurs’ revenue. If you find this to be your experience, consider alternatives, like accepting payment online via your own eCommerce store. Not only will this increase your bottom line, but you’ll also have more control over how you accept payments.
Keep more revenue and save hundreds with the lowest rates in the industry!
Frequently Asked Questions About Etsy Seller Fees
How much does it cost to sell on Etsy overall?
Etsy takes $0.20 plus 6.5 percent of the total sale price, in addition to 3 percent of the total sale plus $0.25 for Etsy Payments. In total, you can expect to pay $0.45 plus 9.5 percent of every sale if no ads contributed to the sale.
If offsite ads contributed to the sale, you’ll pay an additional 12 to 15 percent on top of the $0.45 and 9.5 percent.
If Etsy ads contributed to the sale, you’ll pay for any unpaid balance out of the total of the sale. However, if your ads average $0.05 per click and it took 50 clicks to find a buyer, for example, you’ll pay an additional $2.50 out of the revenue for the sale.
How much does Etsy take per sale?
In total, you can expect to pay $0.45 plus 9.5 percent of every sale if no ads contributed to the sale. For small-ticket products, that sell for under $20, expect a $0.20 listing fee and $0.25 per transaction.
How much is Etsy per month?
With the Etsy Standard pricing plan, Etsy has no monthly fees. If you choose to upgrade to the Etsy Plus pricing plan, you will pay $10 per month.
What is “Etsy Payments”?
Etsy Payments is a payment gateway offered by Etsy to its sellers. Etsy Payments allows shoppers to checkout using their debit or credit card, Apple Pay, or various other payment methods. Without Etsy Payments, buyers have the limited payment option of PayPal.
What is an Etsy Pattern fee?
Etsy Pattern is a program through Etsy that allows you to turn your Etsy store into a custom website. To access this service, you’ll pay $15 per month after your 30-day free trial.
How does Etsy’s pricing compare to other marketplaces like Amazon?
Amazon Handmade is a premium-priced option comparable to Etsy. To access Amazon Handmade, you need to pay a $39.99 monthly fee. Once you generate a sale through Amazon, you pay a 15 percent commission to Amazon for that sale.
Are there cheaper alternatives to Etsy?
As a price-conscious business owner, Etsy may or may not be the best choice. A more affordable option for a business is opening a merchant account.
How much is Etsy’s shipping?
With Etsy, you pay the cost of shipping, charged by your carrier of choice depending on the package size and destination plus a 5 percent fee based on the total cost of shipping. If your shipping cost is $10, you’ll pay $10.50 with Etsy.
How much does Etsy charge per listing?
The listing fee on Etsy is notoriously low at $0.20 per listing, but it is far from the only fee you’ll pay to sell on the Etsy platform. In total, you can expect to pay $0.45 plus 9.5 percent of every sale if no ads contributed to the sale.
How does Etsy handle sales tax?
If a sales tax is applicable, Etsy will automatically calculate and remit it to the relevant tax boards on your behalf.
Note: Etsy processing fees apply to the total amount your customer paid including sales tax, but Etsy transaction fees (the 6.5 percent) and offsite ad fees (12 or 15 percent) do not apply to the amount billed for sales tax.
