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Sep 2, 2025
Filed under: Credit Card Processing, eCommerce
Etsy Fees: How Much Does Etsy Take Per Sale?
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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WRITTEN & RESEARCHED BY
Editor & Senior Staff Writer
Last updated onUpdated
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Key Takeaways
- Etsy charges multiple fees, which can significantly impact profit margins for sellers.
- Etsy's fees can quickly add up, potentially reducing profitability.
- Platforms like Shopify, Square, eBay, and Redbubble offer different fee structures and benefits, which may be more cost-effective.
Etsy is a popular marketplace for handmade, vintage, and creative goods, but its seller fees can make it difficult to determine how much each sale will actually cost.
Below, we break down Etsy’s main seller fees and compare alternatives for sellers considering other platforms.
Table of Contents
How Much Does Etsy Take Per Sale?
Etsy’s standard fees include a listing fee, a transaction fee, and an Etsy Payments processing fee. Depending on your shop, location, and services used, you may also pay advertising, currency conversion, subscription, regulatory, deposit, or shipping-label fees.
| Fee Type | Cost | When It Applies |
|---|---|---|
| Listing Fee | $0.20 | Charged when a listing is created or renewed |
| Transaction Fee | 6.5% | Charged on the item price, shipping, and gift wrapping |
| Payment Processing | 3% + $0.25 in the US | Charged on Etsy Payments transactions; rates vary by country |
| Currency Conversion | 2.5% | Charged when the listing and payment-account currencies differ |
| Etsy Ads | Varies | Optional pay-per-click advertising on Etsy |
| Offsite Ads | 12% – 15% | Charged when an eligible sale is attributed to an Offsite Ad |
| In-Person Sales | Square processing fees may apply | Applies when Etsy is connected to Square |
| Etsy Plus | $10/month | Optional seller subscription |
| Pattern | $15/month | Optional standalone website subscription after a 30-day trial |
Etsy Fees Explained
These are the primary fees Etsy sellers may encounter. Some apply to every listing or sale, while others depend on the services used and the seller’s location.
Is Etsy Worth The Cost?
Whether Etsy is worth it depends on your profit margins and how much value you place on Etsy’s built-in customer base. These two examples show how fees impact low- and high-volume sellers differently.
Example 1: Low-Priced, High-Volume Item
A bracelet costs $5 to make and sells for $10. The buyer covered the $5 shipping charge.
| Expense | Amount |
|---|---|
| Cost of production | $5.00 |
| 6.5% fee on item | $0.65 |
| 6.5% fee on shipping | $0.33 |
| Payment processing (3% + $0.25) | $0.70 |
| Listing fee | $0.20 |
| Total expenses | $6.88 |
Profit: $3.12
With such a small margin, Etsy’s fees take a noticeable bite. You’d likely need to raise prices or reduce costs to make Etsy worthwhile.
Example 2: Higher Priced Item
A custom table costs $150 to make, sells for $449 with free shipping (your shipping cost is $50). Your shop earns over $10K/year, so offsite ads are 12%.
| Expense | Amount |
|---|---|
| Cost of production | $150.00 |
| 6.5% transaction fee | $29.19 |
| Shipping cost | $50.00 |
| Payment processing (3% + $0.25) | $13.72 |
| Listing fee | $0.20 |
| 12% offsite ad fee | $53.88 |
| Total expenses | $246.99 |
Profit: $202.01
Although the profit is higher, Etsy’s fees still cut heavily into revenue, especially if ads trigger the sale. For higher-ticket items, selling through your own online store may provide better margins.
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.
How To Offset Etsy Seller Fees
To protect your profit margins on Etsy:
- Raise prices to account for listing, transaction, and processing fees.
- Source lower-cost materials without sacrificing quality.
- Reduce package weight and dimensions where possible.
- Compare shipping carriers and label rates.
- Build traffic through social media, email, blogs, and Pinterest to rely less on paid Etsy Ads.
- Sell synced Etsy inventory in person through Square; Square processing fees and Etsy renewal fees may still apply.
- Turn off automatic renewal or remove listings that no longer sell.
You can also build a separate online store alongside Etsy to diversify your sales channels. However, Etsy prohibits directing buyers who found an item on Etsy to complete that transaction through another website or payment method.
Etsy Alternatives For Sellers
If Etsy’s fees or marketplace structure no longer fit your business, consider these alternatives.
The Bottom Line: Is Selling On Etsy Worth It For Your Business?
Etsy can be worth it for sellers who benefit from its built-in audience and can maintain healthy margins after listing, transaction, processing, and advertising fees.
Before committing, calculate your total cost per sale and compare Etsy with other sales channels. You can also build a separate online store alongside Etsy, but you should not direct Etsy buyers to complete Etsy-originated purchases off the platform.
Erica Seppala
Editor & Senior Staff Writer at Merchant Maverick
Erica has been writing about small business finance and technology since 2008. She joined Merchant Maverick in 2018 and specializes in researching and reviewing business software, financial products, and other topics to help small businesses manage and grow their operations. Her expertise has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll, a graduate of Limestone University, and currently resides in Greenville, South Carolina.
View Erica Seppala's professional experience on LinkedIn.
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