Etsy Fees 2023: How Much Does Etsy Take From Sales?
This popular platform helps creators and makers make sales, but Etsy fees can take a serious chunk of the bottom line.
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.
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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.
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.