How Much Does Etsy Take per Sale: Breaking down the Numbers

Since its launch in 2005, Etsy has become one of the most accessible marketplaces for setting up and hosting a print-on-demand store. Often referred to as a crafter’s paradise, Etsy connects artists and creative entrepreneurs with a global audience.

Its user-friendly platform makes it perfect for beginners looking to start their ecommerce journey without a hefty upfront investment. That said, getting a handle on Etsy’s fee structure can be challenging.

Today we’re answering the question “how much does Etsy take per sale,” breaking down the fee structure, and looking at other potential expenses.

Sounds good? Let’s roll.

What kind of fees does Etsy charge?

Etsy’s fee structure includes several types of charges that can impact your overall profit margins.

Listing fees

There’s a mandatory listing fee when you add new items to your Etsy store. This fee is $0.20 per product and enables each item to be registered for a span of 4 months. During this time, you can modify the product without any additional charges. Etsy's automatic renewal feature will renew your listings at the end of the four-month period, charging $0.20 each time.

Should you sell an item and wish to keep it listed, you’ll need to pay the $0.20 listing fee each time you relist it. Renewed listings retain their original view count, favorites, and website address.

The listing fee can appear in several ways on your payment account:

• Listing fee: The initial fee for adding a new item for 4 months

• Auto-renew expired: Automatic renewal fee for unsold stock items after 4 months (you can disable auto-renewal in the listings settings menu to renew manually)

• Auto-renew sold: Automatic fee for selling extra quantities of items (more than one listed item)

• Multi-quantity: Fee for selling multiple variations of the same item in one payment transaction

• Private listing: Fee for a private sale to a designated buyer, unlisted to the public

The Etsy listing fee is a non-refundable charge for hosting your listings on the platform. Whether the item sells or not, the fee remains applicable. For instance, if you list 10 items, you will be charged $2 in listing fees.

Transaction fees

Etsy collects a 6.5% transaction fee on every sale. This fee is automatically processed for Etsy Payments users when a customer completes a purchase and is applied to the total cost of the product, including shipping, gift wrapping, personalization, or any other add-ons.

For example, if you sell an item for $20 with $5 shipping, Etsy will deduct $1.62 as transaction fees. This includes $1.30 (6.5%) for the product price and $0.32 (6.5%) for the shipping fee.

The fee is always charged in the currency you list your items, regardless of where your business operates. For instance, if you list your items in USD but operate in Australia, the fee is 6.5% of the USD price. If you list in AUD, it’s 6.5% of the AUD price.

In the US and Canada, the 6.5% fee only applies to sales tax if it’s included in the listing price. For sellers outside the US and Canada, mandatory sales tax must be included in the prices, and the 6.5% transaction fee will apply to this tax as well as to shipping and gift-wrapping fees.

Source: Paper and Spark

Unlike the listing fee, which is paid upfront, the transaction fee is only deducted when your items sell. If a listing expires or is removed before a sale, no transaction fee is applied.

Payment processing fees

Whenever you make a sale on Etsy, a payment processing fee is subtracted. These fees differ based on your region’s sales tax or VAT and the payment processing service used. Etsy Payments, the platform’s internal system, applies a fixed rate plus a percentage, ranging from 3% to 4.5% of the total sale price.

In the US, the payment processing fee is 3% plus $0.25. For other countries, it’s best to consult the Etsy Help Center for specific rates. Most sellers use Etsy Payments to receive funds, allowing them to accept a variety of payment methods like credit and debit cards, Apple Pay, bank transfers, and Etsy gift cards.

If you’re ineligible for Etsy Payments, PayPal is an alternative, offering comparable fees that also vary by region. Details on PayPal’s fees can be found on their website.

Payment fees are only charged when a sale is made. If a listing expires or is removed before selling, no payment fee is applied.

Region-specific fees

Depending on the seller’s region, Etsy may apply extra fees based on the listing currency, applicable taxes, and platform operations.

VAT

In the European Union and some other countries, Etsy sellers must pay value-added tax (VAT) on the total price paid by the buyer for each Etsy listing. VAT is also applied to payment processing fees in eligible countries—sellers can check Etsy’s Help page to find out if their country requires additional taxes.

Sales tax

Etsy handles sales tax collection on a monthly basis for most US territories, sending the taxes to government authorities. The sales tax is calculated and detailed in the seller’s Etsy Payments account under the Sales and Fees section. 

Sellers have the option to opt out of this service and manage tax remittance independently if they prefer. It’s recommended to verify the specific regional sales tax requirements applicable to your listings in the US.

Even though Etsy can manage VAT and sales tax fees on behalf of sellers, issuing a downloadable invoice for the specific state or regional taxes that apply to your sales, it’s advisable to reach out to your local tax authority for clarification.

Optional Etsy fees

In addition to the standard fees associated with selling on Etsy, there are several optional expenses that can improve your shop’s visibility, streamline shipping, and offer more customization options.

Etsy ads

Etsy marketing techniques can accommodate various advertising strategies, with Etsy Ads being the primary method for promoting products on the platform.

Through Etsy Ads, selected listings gain visibility by appearing in prominent spots such as the user catalog, search results, and category pages. Listings that attract high demand, whether through optimized tags, superior product quality, or a higher budget per click compared to competitors, will receive greater visibility.

Source: Brand Creators

Etsy Ads operate on a cost-per-click (CPC) basis, meaning you pay each time a shopper clicks on your ad. The average cost-per-click ranges from $0.20 to $0.50. Etsy allows you to set a daily budget for your ads, ranging from $1 to $25, with a higher budget increasing the frequency of your ad appearances.

Offsite ads

Offsite ads differ from Etsy Ads in that you’re only charged when a shopper purchases your product after clicking the ad. These ads are displayed on external sites like Google, Facebook, and Instagram. Clicks from shoppers that don’t result in a sale aren’t charged. A sale is credited to an offsite ad if a user clicks on it and buys the product within 30 days. 

The offsite ads fee is 12% for sellers who have made over $10,000 in the past 12 months, and 15% for those who have made less. Sellers who surpass the $10,000 threshold are automatically enrolled in the offsite ads program. The fee is calculated as a percentage of the total sale price, including shipping, gift wrapping, and any applicable taxes.

Source: Etsy

Etsy limits the offsite advertising fee to $100 per sale, regardless of the total sale amount. These ads are open to all sellers, but Etsy evaluates listing performance and relevance to ensure effective targeting.

Read also: Etsy SEO: 5 Must-do Steps to Help You Get Found on Etsy

Shipping label fees

Once your order is ready for shipping, Etsy offers a discounted service for printing postage labels directly from your shop. When a customer receives your product, the packaging is their first impression. Purchasing postage labels can help customize your items and add extra value for the buyer.

Etsy’s shipping labels are available through various carriers, including:

• Australia Post

• Canada Post

• FedEx

• Global Postal Shipping

• USPS

• Royal Mail

The cost of shipping labels depends on factors like the origin, destination, weight, mail class, and dimensions of your package. Etsy provides a 30% discount on average postal shipping fees with USPS shipping. This service is only available to sellers using Etsy Payments or PayPal as a payment method and is applicable in the United States, Canada, the United Kingdom, Australia, and India.

Etsy Pattern

Etsy Pattern is a separate storefront for your Etsy shop, offering improved personalization options such as domain name, website layout, font, color, and logo customization.

The service costs $15/month, following a 30-day trial period. Unlike your Etsy shop, listings on Pattern are free off charge, they don’t expire, and the transaction fee is waived. However, payment processing fees still apply.

Pattern allows you to build your own website, similar to platforms like Shopify, Wix, and Squarespace. One of the main benefits is the ability to sync your Etsy shop listings with your Pattern website and manage both through the Shop Manager in your Etsy dashboard. This integrated approach simplifies the management of your online presence.

Source: Etsy Success

While Pattern provides some customization options, they are somewhat limited. Only a small number of pre-made website layouts and fonts are available. Additionally, you’ll need to purchase a domain name, which means a separate fee (Etsy partners with Tucows for domain registration).

Etsy fee examples

To help you better understand the costs associated with selling on Etsy, we’ve put together a few examples using round numbers. This will give you a clear picture of what to expect with different product price ranges.

Low-priced products

Let’s start with a ceramic mug. It’s a low-priced item, and because of its moderate size, the shipping cost is relatively low.

Source: Printful

Product price for customers: $25

Shipping: $6

Cost of the product for you: $9

Shipping cost: $6

Total product + shipping cost: $15

Listing fee: $0.20

Transaction fee (6.5%): 6.5% * ($25 + $6) = $2.02

Payment processing fee (3% + $0.25): 3% * ($25 + $6) + $0.25 = $1.18

Total Etsy fees: $3.40

Revenue (product price + shipping): $31

Total costs: $18.40

Total profit: $31 - $18.40 = $12.60

Mid-priced products

For our second example let’s use a glossy metal print. The price is higher, and it has more packaging material involved, which makes it a bit more expensive to ship.

Source: Printful

Product price for customers: $70

Shipping: $10

Cost of the product for you: $38

Shipping cost: $10

Total product + shipping cost: $48

Listing fee: $0.20

Transaction fee (6.5%): 6.5% * ($70 + $10) = $5.20

Payment processing fee (3% + $0.25): 3% * ($70 + $10) + $0.25 = $2.65

Total Etsy fees: $8.05

Revenue (product price + shipping): $80

Total costs: $56.05

Total profit: $80 - $56.05 = $23.95

High-priced products

For our last example, let’s use a high-end handcrafted wooden table. Due to its size and weight, the shipping cost has increased significantly.

Source: Etsy

Product price for customers: $1,200

Shipping: $100

Cost of the product for you: $400

Shipping cost: $100

Total product + shipping cost: $500

Listing fee: $0.20

Transaction fee (6.5%): 6.5% * ($1,200 + $100) = $84.50

Payment processing fee (3% + $0.25): 3% * ($1,200 + $100) + $0.25 = $39.25

Total Etsy fees: $123.95

Revenue (product price + shipping): $1,300

Total costs: $623.95

Total profit: $1,300 - $623.95 = $676.05

By breaking down the fees for low, mid, and high-priced products, you can see how each type of expense adds up and impacts your earnings. To make these calculations easier, you can forecast your Etsy store’s earnings with our free Etsy Calculator.

Valuable read: Is Etsy Print-on-Demand Profitable in 2024?

Selling on Etsy made easy

Now that you understand Etsy’s fee structure, you're fully equipped to launch your Etsy business and turn your creativity into income. 

Whether you aspire to become a full-time creator or just want to make some extra cash on the side, Etsy provides an excellent opportunity to build a business around your passion. 

By leveraging POD suppliers like Printful, you can focus on creating high-quality trending products while Printful’s seamless integration takes care of product fulfillment and shipping.

And just like that, you’re all set to begin your Etsy dropshipping venture.

Happy selling!

Read next: How To Sell Print-on-Demand On Etsy in 10 Easy Steps.