Etsy charges a flat $0.20 per listing plus 6.5% of the total payment collected including the shipping price charged to the customer. If the transaction is processed via “Etsy Direct Checkout” you’ll pay an additional 3% plus a $0.25 fee.
Etsy charges a $0.20 “listing fee” for each item listed which is paid regardless of resulting sales and lasts 4 months or until the item is sold. When an item is sold, you can have your listing “auto-renew” at the cost of an additional $0.20 which will last another 4 months. And if you haven’t sold a single item after the 4-month period, you can have your listing “auto-renew” at the same $0.20 per listing fee which will buy you another 4 months.
Multi-quantity listing fees: If a customer buys more than one unit of the same product in a single transaction, Etsy will charge an additional $0.20 listing fee per unit. For example, if a customer buys 3 units of the same item, you’ll incur $0.60 in listing fees on the transaction.
Etsy listing fees can effectively be viewed as transactional fees in most cases since most fees occur when an order is placed but Etsy has a separate classification for “transaction fees”.
Etsy charges a per transaction fee of 6.5% of the total price you charge your customer for an item, including the shipping price you charge, customization, and gift wrapping.
For example, if you sell a t-shirt for $30 and charge $5 for shipping and $3 for gift wrapping, Etsy will take 5% of $38 ($30 + $5 + $3) which equates to $1.90 in transaction fees paid to Etsy.
There are two primary payment processing options for US Etsy sellers: Etsy Payments and PayPal.
Etsy Payments charges 3% plus $0.25 for each transaction and PayPal charges the standard 2.9% plus $0.30 for each transaction.
Etsy has two types of advertising fees: Offsite Ads and Etsy Ads.
Etsy Ads is an optional service sellers can leverage. Since it operates on the PPC (pay-per-click) model, pricing will vary based on keywords and their respective demand, so there is no standard fee schedule. Etsy allows you to set a maximum daily budget to ensure you’re not spending more than you’d like and that your ad spend isn’t running out of control.
Etsy’s Offsite Ads program was rolled out in early 2020 and has been controversial, to say the least. All sellers are automatically enrolled and only sellers that are generating less than $10,000 annually can opt out of the program. However, the program is mandatory for sellers that are generating more than $10,000 annually. This means your fees paid to Etsy will very likely be increasing and hopefully your revenue will too, although there is no guarantee of increased revenue.
If your revenue is less than $10,000 in the last 365 days, you will be charged 15% of all sales generated through Etsy’s Offsite Ads program. If your revenue is $10,000 or more in the last 365 days, you will be charged 12% of all sales generated through the program.
Whether you’re just starting or have been in business for many years, operating an Etsy business is no easy task. Especially when you’re spending so much of your time on manual, mundane tasks.
Thankfully, many of these tasks can be automated by software. So we compiled an Etsy Toolkit list of software that every Etsy seller needs in their repertoire.
