Etsy fees, explained
At the time of writing, a US Etsy shop pays these fees on a sale:
- Listing fee: $0.20 per listing, renewed every four months or when it sells. Each extra unit sold from a multi-quantity listing costs another $0.20.
- Transaction fee: 6.5% of the order total, including shipping and gift wrap.
- Payment processing: 3% + $0.25 in the US. It differs by country.
- Offsite ads: 15%, or 12% for shops over $10,000 in yearly sales, only when a sale comes from an Etsy ad off Etsy. Capped at $100 per order.
- Regulatory operating fee: a small percentage in some countries like the UK and France. US shops don't pay it.
How the fees add up
Fees = $0.20 + (price + shipping) × (6.5% + 3%) + $0.25, plus offsite ads if they apply. Profit = price + shipping − fees − cost to make − postage.
On a $35 item with $5 shipping, the order is $40. Transaction is $2.60, processing $1.45 and listing $0.20, so $4.25 in fees. With $9 in materials and $4.50 postage, you keep $22.25, a 55.6% margin. An offsite ad sale at 15% would take another $6.
Find your break-even price
Break-even price = (cost to make + postage + $0.20 + $0.25) ÷ (1 − percentage fees) − shipping charged. Below it, every sale loses money. Price well above it so a refund, a discount or an offsite ad sale doesn't wipe out your profit.
Keep more of each sale
Build offsite ad fees into your prices if you can't opt out, since you don't choose which sales they hit. Charge shipping that covers your real postage. And send your own followers to a shop you control, like a link-in-bio page with your products, where there's no transaction or ads fee, only payment processing.
Frequently asked questions
How much does Etsy take per sale?
For a US shop, about 9.5% of the order total plus $0.45 ($0.20 listing and $0.25 processing). If the sale came from an offsite ad, add 12% or 15%.
Does Etsy charge fees on shipping?
Yes. The 6.5% transaction fee and the payment processing fee both apply to the shipping you charge, not just the item price.
Can I turn off Etsy offsite ads?
Shops under $10,000 in yearly sales can opt out. Once you pass $10,000, offsite ads are required, at the lower 12% rate.
What's a good profit margin on Etsy?
Many sellers aim for 30% or more after all fees and costs. Handmade and digital products can run much higher; resale tends to run lower.