This popular platform helps creators and makers make sales, but Etsy fees can take a serious chunk of the bottom line.
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Etsy fees have consistently increased, and many sellers are wondering whether selling on the platform is worth it or whether there’s a better alternative. Keep reading for an explanation of Etsy seller fees, example Etsy fee calculations, and cheaper Etsy alternatives for if you decide to start funneling customers towards other online sales platforms.
How Much Does Etsy Charge To Sell?
Etsy charges a $0.20 listing fee, a 6.5% transaction fee that applies to what you charge for the item as well as shipping and gift wrapping, and a payment processing fee depending on your region. There’s a 2.5% currency conversion fee, Etsy Ads fees, and an optional $10/month fee for an Etsy-backed website.
Here’s a more detailed snapshot of the latest Etsy fees:
- Listing Fees: $0.20 per listing (listings count as one item or multiple quantities of one item).
- Transaction Fees: 6.5% transaction fee on the amount you charge for an item.
- Shipping & Gift Wrapping Fees: This is 6.5% of the amount you charge for shipping and gift wrapping.
- Etsy Payment Processing Fees: This is 3% of the transaction price plus $0.25 per transaction (US transactions only; other countries may have different processing fees).
- Currency Conversion Fees: Totals 2.5% of the sale amount.
- Etsy Platform Ad Fees: You choose your budget.
- Etsy Offsite Ad Fees: 12-15% of the sale price of items bought because a user clicked on an offsite ad, depending on your sales volumes.
Etsy may also charge fees if you sell items from your online store in person and monthly fees for subscription plans.
Etsy offers users two paid subscription options for seller accounts: the free Standard Plan and the for-purchase Plus Plan. Here’s what each plan offers.
Etsy Standard Plan Pricing
Etsy’s Standard Plan is a free seller account, complete with all the basic tools that allow users to list products on Etsy, buy and print discounted postage, and market their products with sales and coupons. The Standard Plan also gives you access to the Sell on Etsy App. You won’t pay a monthly subscription fee, but you can expect to pay for services and tools as you use them.
Etsy Plus Plan Pricing
The Plus Plan is available at $10/month. It includes all of the basic features of the Standard Plan, plus advanced shop customization options (banner options, new layouts of featured listings, etc.) and restock requests for sold-out items.
The Plus Plan also offers credits and discounts on additional Etsy services. Note that credits must be used within the monthly period and do not roll over. Here’s a quick list:
- 15 listing credits every month (the equivalent of $3 in listings)
- $5 in Etsy Ads credits every month, which you can use to get found in places like Etsy Category pages and Etsy search results
- Free .store domains
- 50% off select domain extensions (.com, .net, and .ca)
- Discounts on a custom web address
- Discounts on custom packaging and promotional materials
If Etsy’s fees are too complicated or expensive, our experts recommend trying Square. You can sell in person, online, and through your own social posts.
8 Types Of Etsy Fees Explained
Etsy charges a percentage transaction fee for every item sold and a flat fee for each item listed. Etsy also charges a shipping fee, payment processing fee, currency conversion fee, and others depending on your region. These are eight types of Etsy seller fees, explained in detail below.
Etsy Listing Fees
Etsy charges a $0.20 listing fee for each item you put up to sell on the platform. This fee applies to each product you sell.
For example, say you have ten identical ceramic bowls that you are selling individually. You can list all of these identical bowls under the same product page, but after each one sells, you must pay another $0.20 to renew the listing. If you sell all of these bowls, you pay a total of $2 in listing fees.
If, however, you sold a pack of ten bowls as one product, you would pay only one $0.20 listing fee.
Listings expire after four months. After that, you must pay the listing fee again to renew. You can set products to renew automatically, so you don’t have to worry about products becoming unavailable for purchasing.
Etsy Transaction Fees
Etsy’s transaction fee (not to be confused with their payment processing fee) is a fee that Etsy charges to cover the cost of using the platform. Etsy’s transaction fee is 6.5% of the price you charge for your product, including the cost of product customization and gift wrapping.
For sellers in the US and Canada, Etsy does not charge transaction fees on sales tax (unless you include the cost of sales tax in your listing price). However, for sellers outside of the US and Canada, these transaction fees might include the cost of some applicable taxes.
Etsy Shipping Fees
In addition to charging a fee on each transaction, Etsy collects a fee on the amount you charge for shipping. Etsy’s shipping transaction fee is 6.5% of the total cost your customers pay for shipping.
You may offer free shipping to your customers, but you typically build shipping into the cost of the product, so you’ll still be paying the 6.5% in the form of a transaction fee. Free shipping is a great marketing tactic, though, so keep it in mind when you want to run a sale or pique potential buyers’ interest.
Etsy Payments Fees
To accept online payments, all merchants must pay payment processing fees. Payment processors (such as PayPal and Square) typically offer their services at around 2.9% + $0.30 per transaction.
Etsy Payments is Etsy’s in-house payment processor, which sellers must use to accept payments if they are in one of the 36 eligible counties (which includes the US, UK, Australia, and Canada). If Etsy Payments is not available in your country, you can use PayPal to accept online payments.
Etsy Payments charges 3% + $0.25 per transaction. This service allows you to accept payments by credit card, debit card, Etsy Gift Card, Etsy Credit, PayPal, some bank transfer services, Apple Pay, and Google Pay. You can also allow your customers to pay using their PayPal accounts. Etsy Payments rates will apply to these payments instead of PayPal rates.
In-Person Selling Fees
Etsy has partnered with Square to offer sellers an option for in-person selling. Etsy sellers may sync their Etsy store to their Square account for a holistic selling solution.
To accept in-person payments, you’ll need a Square card reader. When you accept payments in person for items you have listed on your Etsy site, you’ll pay the usual listing fees and Square’s payment processing fees. You will not pay the 6.5% Etsy transaction fee.
Square’s payment processing fees include a 2.6% fee on the sale price, plus a $0.10 flat fee, for every swiped card payment. For manually entered payments, you are charged a fee of 3.5% of the sale price plus $0.15.
If you sell an item via Square that is not synced with your Etsy seller account, Etsy charges a $0.20 “Square manual” transaction fee.
Etsy Pattern Fees
If you’re looking to build a more personalized website to sell your products, Etsy has a solution for you. Pattern is web-building software that allows you to develop your own store that is still connected to your Etsy seller account. Pattern is available for a 30-day free trial. After that, you are charged $15/month, plus tax where applicable.
Pattern can be worth the monthly fee when you consider the Etsy seller fees you no longer have to pay. For items listed only on your Pattern site, you do not have to pay the $0.20 listing fee or the 6.5% Etsy transaction fee.
If you already had a product listed on Etsy and you also want to list it on Pattern, you do not need to pay an additional listing fee (you have already paid one to Etsy). Pattern listings do not expire, so you don’t have to pay renewal fees, either.
You still have to pay payment processing fees, but Etsy’s payment processing fees are pretty comparable to other payment processors.
Etsy Currency Conversion Fees
Etsy recommends that sellers list their pricing in the same currency as their payment account currency. That allows sellers to avoid foreign exchange charges. Customers can select the currency in which they view listings, so listing your products in one particular currency shouldn’t impact your sales at all. However, if you do not do this and you list your products in a different currency than your payment account, you will be charged a 2.5% currency conversion fee.
You can avoid Etsy’s currency conversion fees by receiving payments via PayPal.
Etsy Ad Fees
Over the past few years, Etsy has rolled out some marketing tools for users. These include onsite and offsite ads, which of course, come with their own fees. Here’s a rundown of these fees:
Etsy Ad Fees
Etsy allows sellers to market their products within the marketplace via Etsy Ads. These ads are available with pay-per-click pricing, and the cost of each click will vary depending on demand. You can set a budget that limits the amount you’re willing to pay for onsite ads daily, and Etsy will list your ads until you reach that daily maximum.
Offsite Ads Fees
Etsy’s Offsite Ads are the newest development in Etsy’s advertising. All users are automatically enrolled for Offsite Ads, with the option to opt-out available to sellers who have made less than $10,000 in sales in the past year. Fees are only incurred when you make a sale linked to one of these ads.
With the new Offsite Ads program, Etsy will market your products on major sites like Google, Facebook, Instagram, Pinterest, and Bing. When someone clicks an ad that includes one of your products and then purchases from your Etsy shop within 30 days, you are charged an advertising fee on that order total.
This fee is either 12% or 15%, depending on your annual sales (in addition to the other fees listed above). For those who made under $10,000 in sales in the past year, Offsite Ads is an optional service, and the rate is 15%.
However, for those who made over $10,000 in sales in the past year, Offsite Ads are mandatory for the lifetime of your shop, even if you later fall below the $10,000 threshold. Etsy charges sellers who make over $10,000 per year a discounted rate of 12% on purchases made through the ads.
If a buyer clicks on an offsite ad and makes multiple purchases within 30 days of clicking it, all those purchases are subject to offsite ad fees, even if their purchases are not for items listed in offsite ads. That is because Etsy “attributes all sales” to the ad within that 30-day timeframe.
How To Offset Etsy Seller Fees
To make a profit on Etsy, you have to pay close attention to the cost of doing business on the platform. Here are a few ways you can make sure to stay on top of Etsy Seller Fees:
- Increase Prices: The most obvious way to protect your profits is to increase product pricing. Sellers often worry that increasing the cost of their goods will make them less competitive. While this is sometimes the case, some Etsy sellers report that their sales did not decrease after they raised prices. That could be because buyers often view higher-priced items as higher quality.
- Cut Production & Shipping Costs: This is the next obvious step. Rethink the way you handle both production and shipping. Is there any way you can make your products quicker or more affordable without significantly impacting quality? And when it comes to shipping, are you comparing options from multiple shipping carriers to make the most cost-effective decisions possible? If there’s an area where you can lessen your expenses, do so.
- Weigh The Pros & Cons Of Ads: If you have the ability to choose whether or not to use Offsite Ads, consider this very carefully. If you opt-in, you’ll likely get a number of one-off sales and long-term customers that you wouldn’t otherwise, but you will also need to leave space in your profit margins for the additional 12% or 15% fee.
- Advertise On Other Platforms: Advertising to a social media following, starting a blog, and guest posting on other platforms are easy, free marketing strategies to increase web traffic and get people to your Etsy storefront.
- Show Up To In-Person Events: In-person Square fees are much cheaper than Etsy transaction and payment processing fees. So, instead of just redirecting people directly to your Etsy store, sell at in-person craft shows or host your own events to get those in-person customers.
- Don’t Keep Stale Listings: Because your listings renew every four months (at an additional $0.20 fee each time), make sure the products you list on your store move within four months. Etsy’s new search engine algorithm prioritizes more recent listings, and if you want to rank higher in Etsy search results, you need to have fresh listings. Plus, if you keep paying for items that don’t sell, you might end up paying more in fees than the product is actually worth.
- Get Help From The Etsy Community: The Etsy community comprises a strong bunch of sellers. Ask the Etsy community forum for ways others handle Etsy’s fees and to gain specific advice on running your own store.
Etsy Seller Reviews Regarding Fees
Etsy sellers have mixed opinions regarding fees. Some sellers say that Etsy fees are worth it to produce more sales, while others are highly disappointed by how much Etsy charges sellers on the platform. One chagrined user said:
…This is the first year I’ve been actually making sales, I’m so proud of myself, been hustling hard….But out of the 2k that I made this year so far, Etsy ended up taking almost $500 in fees. I am so disappointed and that’s just NOT right. Feeling kind of stuck- Anyone else feeling like this?
Another took a more favorable view:
I see Etsy as a fancy business card, or a stand on a business fair. My expenses are high on Etsy as well, but I consider those costs all as marketing costs…Etsy brings in the customer, without me having to jump through hoops and some of them come directly to my other shop after they purchased on Etsy with me. It’s a bit of trading energy. Etsy does the work, I pay them for that. I have left over energy to focus on my own website.
More recently, Etsy caused a stir with its announcement about automatic enrollment in Offsite Ads for sellers, with some users unable to opt out of the program. Some users have expressed confusion and outrage over the new policy, while others say it could be a good investment. There are several comments from the community forum that represent the conversation about this new policy. One user said:
This is how most marketing works and it has proven to be successful. I’m learning how to work with it. So, hopefully over time these ads can be more profitable.
Another Etsy user commented:
When listing a popular or hard to find item a higher selling price will be taken into consideration to make up for the the real potential and painful loss of an additional 12% out of pocket expense through forced participation by Etsy. I don’t know how many times this needs to be repeated but Etsy SHOULD GIVE ALL SELLERS THE OPTION TO OPT OUT. Shoulda coulda have listed it on Ebay. Thanks.
Is Selling On Etsy Too Expensive?
So are Etsy costs worth the expense for your business? That depends on a few factors: your profit margins and the value you derive from the marketplace. Here are two example cases, one from a high-volume seller and one from a low-volume seller.
In the first example, let’s imagine that you make bracelets that cost you $5 to produce, and you sell them on your platform for $10 each. You also charge a $5 flat fee for shipping. Here’s a breakdown of what the associated costs and fees would be.
- Cost To Produce Item: $5.00
- 6.5% Transaction Fee: $0.33
- 6.5% Shipping Transaction Fee: $0.33
- 3% + $0.25 Payment Processing Fee: $0.70
- Listing Fee: $0.20
- Total Expenses: $6.56
When we subtract the cost of making the product and the expenses related to fees, we end up with a $3.44 profit margin. In this example, you’d likely need to raise your pricing in order to increase your profit margins and better account for Etsy’s seller fees.
In the second example, let’s say that you make custom tables from upcycled wood, which cost $150 to make. A buyer sees an ad on Google Shopping for one of your tables and buys it for $449, with free shipping. It costs you $50 to ship the table, though. Your store also makes over $10,000 per year, so you are charged a 12% offsite ad fee. The total cost to make and sell this table would break down like this:
- Cost Of Production: $150
- Shipping Cost For You (Which You Built Into The Product’s Sale Price): $50
- 6.5% Transaction Fee: $29.19
- Listing Fee: $0.20
- 3% + $0.25 Payment Processing Fee: $13.72
- 12% Offsite Ad Fee: $53.88
- Total Expenses: $296.99
You end up paying around $296.99 to create your product, list it on Etsy, and ship it to your customer, leaving you with a $152.01 profit on a table you probably worked hard on for weeks.
In this example, it would be worth considering an alternative to Etsy, such as selling on your own online store.
Etsy Alternatives To Sell Your Crafts Online
While some merchants choose to navigate Etsy’s ever-shifting fees and guidelines, many sellers are tired of constantly adjusting their prices to reflect new fees. First-time sellers might not want to pay listing or transaction fees to begin with. Here are some alternatives to Etsy for new and seasoned business owners.
Square Online
Square Online is a completely free online store builder that sellers can use to set up their own online store and even start selling in person at craft fairs or events with very affordable Square POS (point of sale) software and a Square card reader.
Square is famous for providing free/low-cost business tools to beginner and small business owners, and the only fees you’ll pay are for processing payments (which you will have to pay no matter how you take credit/debit cards and other digital payment types.) Square’s payment processing fees are pretty standard for online sales platform providers.
Shopify
Shopify is a popular online store builder that, like Square, includes Shopify POS software for selling in-person as well as online. While you have to pay a monthly subscription for Shopify software, you won’t have to pay Etsy’s per-sales fees such as listing or transaction fees.
You pay one set monthly price, and a much lower payment processing fee than you would if you sold your work on Etsy.
Redbubble
Redbubble is a popular print-on-demand marketplace where sellers can upload their designs and get a percentage of sales made from t-shirts, stickers, mugs, and other physical items that their pattern gets printed on. It’s a great place to make money on a lot of different items using one design, usually a design that’s trendy or funny, without having to make any upfront investment.
It doesn’t cost anything to set up your Redbubble store, and you don’t have to physically make or ship any items. So, it’s worth the effort to set one a Redbubble shop if you have funny or cute ideas for t-shirts, leggings, stickers, phone cases, prints, shoes, etc.
It’s important to find the right commission rate to make selling on the platform worth it, though. You could also use Redbubble for exposure and then drive people towards your own website if you want to start making products on your own (and making more money per product).
Etsy Fees FAQs
How much does Etsy cost?
Etsy offers two pricing plans. The Standard Plan is a free seller account that allows you to list products on Etsy for a monthly subscription fee of $0. You will still pay listing fees, transaction fees, and other charges as you sell on Etsy.
Etsy’s Plus Plan costs $10/month and includes advanced customization options and monthly credits you use to run and advertise your store, including 15 listing credits and $5 in Etsy Ad credits each month.
How much is Etsy's transaction fee?
Etsy charges a transaction fee on each sale that you make. This fee is meant to cover the cost of using the platform. That fee is 5% of the total sales price, including product customization and gift wrapping. In the US and Canada, Etsy’s transaction fees do not charge a percentage of sales tax unless you build sales tax into your listing price. Fees in other countries might include the costs of some taxes.
How much is Etsy's shipping fee?
Etsy charges a shipping fee of 5% of the total cost your customers pay for shipping.
What is Etsy Payments?
Etsy Payments is Etsy’s in-house payment processor. Etsy Payments lets you accept payments via credit card, debit card, Etsy gift cards, Etsy Credit, PayPal, some bank transfer services, Apple Pay, and Google Pay. Etsy Payments charges a transaction fee of 3% plus $0.25 on each transaction. Etsy Payments is available in 36 countries, including the US and Canada.
What is Etsy Pattern?
Etsy Pattern is website building software you can use to create a personalized website linked to your Etsy seller account. You can test Pattern free for 30 days, and if you like it, you’ll pay $15/month for your website.
What is an Etsy Ad fee?
Etsy Ad fees the amount of money you pay every time someone clicks on an item you pay to have advertised on Etsy’s marketplace. Fees are usually $0.25 to $0.50 per click.
You can limit the amount you’re willing to spend on ads each day.
What are Etsy Offsite Ads?
Etsy’s Offsite Ads market your products on major sites, including Google, Facebook, Instagram, and Pinterest. Etsy’s Offsite Ads are required for shops that made more than $10,000 in sales over the past year. When shoppers click on one of your ads and then purchase from your shop within 30 days, you will pay an advertising fee of 12% or 15% on that total order, depending on your sales volume.
All Etsy shops are automatically enrolled in Etsy Offsite Ads, although sellers making less than $10,000 per year are allowed to opt out.
Is there a cheaper alternative to Etsy?
Yes. Sellers looking for cheaper alternatives to Etsy have many good low-cost options, including setting up an independent online store or finding a new online marketplace to join. Because Etsy offers good resources and support for small sellers, be sure you look at a head-to-head comparison of your options before you decide whether to leave Etsy or stay.
Can you sell on Etsy for free?
You can’t sell on Etsy for free. You have to pay a listing fee, transaction fee, and payment processing fee.
Is it possible to avoid Etsy fees?
It is not possible to avoid Etsy fees. You’ll be automatically charged a percentage of each sale. If you owe Etsy fees but have not made any sales, the fee amount will be charged to a card linked to your Etsy account.
