Etsy Fees at a Glance
Etsy charges its fees on the item price plus shipping and gift wrap.
| Fee | Percentage | Flat | Notes |
|---|---|---|---|
| Listing fee | โ | $0.20 | Per listing, every 4 months |
| Transaction fee | 6.5% | โ | On item price plus shipping |
| Payment processing | 3% | $0.25 | โ |
Fees That Apply in Some Cases
| Fee | Percentage | Flat | When |
|---|---|---|---|
| Offsite Ads | 15% | โ | 12% if you made over $10k in 12 months |
What You Keep
The flat component is what makes small sales expensive. The same fee schedule costs a very different effective rate depending on the order size:
| Sale | Fees | You receive | Effective rate |
|---|---|---|---|
| $5.00 | $0.93 | $4.08 | 18.50% |
| $20.00 | $2.35 | $17.65 | 11.75% |
| $50.00 | $5.20 | $44.80 | 10.40% |
| $100.00 | $9.95 | $90.05 | 9.95% |
| $500.00 | $47.95 | $452.05 | 9.59% |
Etsy Charges Four Times
Etsy is not one fee, it is a stack โ and the transaction fee applies to shipping as well as the item price, which surprises sellers who price shipping at cost.
For a $50 item with $8 shipping:
| Fee | Basis | Amount |
|---|---|---|
| Listing | Flat, per listing per 4 months | $0.20 |
| Transaction 6.5% | $58 (item + shipping) | $3.77 |
| Payment 3% + 25ยข | $58 | $2.00 |
| Subtotal | $5.97 โ 10.3% | |
| Offsite Ads 15% | $58, when triggered | $8.70 |
| With ads | $14.67 โ 25.3% |
Offsite Ads Is Not Optional Above $10k
Once you pass $10,000 in Etsy sales over 12 months, Offsite Ads becomes mandatory โ the rate drops to 12%, but you can no longer opt out. Any sale attributed to an Etsy-purchased ad carries that fee on top of everything else. Price for it before you cross the threshold, not after.
Free Shipping Is Not Free
Etsy favours listings offering free domestic shipping, but the transaction fee is charged on the total either way. Building $8 of shipping into the item price costs the same 6.5% โ the difference is conversion rate, not fees.
Charging to Hit a Target Payout
Adding 9.50% to your price under-recovers, because the percentage then applies to the larger amount as well. The correct gross-up divides:
``
charge = (target + flat fees) รท (1 โ percentage rate)
``
| To receive | Charge |
|---|---|
| $100.00 | $110.99 |
| $1,000.00 | $1,105.47 |
Reducing What You Pay
- Raise average order value. The flat fee is fixed, so bundling two $20.00 orders
- Watch the optional surcharges. International and currency-conversion fees stack on top
- Negotiate at volume. Most processors will discuss custom rates once you are processing
- Do not migrate for 0.2%. The engineering and support cost of changing platforms
US seller rates. Offsite Ads is mandatory above $10k of annual sales.