Etsy, like most platforms for online sales, requires business to pay certain fees to use its services. These fees have an impact on your total profit, which means it’s extremely important to know what you can expect to pay before you start putting your plan together.
Etsy fees are reasonably simple to understand but calculating exactly how much you’ll need to pay can sometimes be complex when you’re just getting started. This Etsy fee calculator aims to remove the headaches associated with selling online through Etsy.
What Are Etsy’s Fees?
The Etsy fees you’ll need to pay start with the cost for a listing. There’s a flat $0.20 charge for each listing, plus you’ll need to pay 5% of the total payment you collect, including the shipping charge of getting your item to your customer. If you process your transaction using the Etsy Direct Checkout service, there’s another fee associated with this, costing 3% of the transaction plus $0.25.
Crucially, Etsy listings expire after four months, so you’ll need to pay the cost of listing again when your existing listing runs out. If you’re an Etsy Payments customer, and you’re listing your items in a currency other than the currency on your payment account, there’ll be extra fees to consider when it comes to currency conversion.
Goods and service tax or harmonized sales tax will not be applied to the transaction fee if you’re selling in Canada or the US, unless you include those charges in your listing price yourself.
Etsy Promotional and Advertising Fees
Etsy offers a handful of services to help you advertise your products and promote your store online. These services come with a specific fee to pay. If you’re using Etsy ads, you can select a maximum daily budget. Offsite ads only come with fees if Etsy’s advertising of your listing results in a sale directly.
Etsy ad fees
If you choose to purchase paid advertising services through Etsy using the Advertising dashboard, you can set a budget on the amount you’re willing to pay each day. Your daily budget can be set at or above a predetermined minimum suggested by Etsy. You also won’t be charged more than your maximum budget on a daily basis, so it’s helpful for tracking your costs.
Offsite ad fees
Etsy also purchases offsite advertising from a network of participating companies like search engines and social networks. If this advertising includes your listing, and a buyer clicks on that listing then orders from your shop within thirty days, you’ll be charged an advertising fee for the order.
The standard fee on orders attributed to Etsy is 15%. This fee applies when your store has made less than $109,000 in sales over the last year. As calculated on the first day for the month. You will be able to reduce the fee to around 12%, if your shop makes over $10,000 sales in the year.
How offsite ad fees are calculated
Offsite ads are charged as a percentage of a total order cost. This total order cost will include the shipping fees you charge, any gift-wrapping costs, and the prices you display for your listing. The cost also includes taxes in some jurisdictions.
Common Etsy Listing Fees
Etsy sellers will have a number of costs to consider before they can enjoy their profit, including the listing fee, shipping cost, payment processing fee, and even costs associated with certain payment method options. It’s important to consider all of the costs carefully, including things like the PayPal fee for using PayPal as your processing provider.
The most common Etsy listing fees:
- The listing fee: Just as you’d have to pay for listing your product on eBay or Amazon after making a sale, there’s also listing fees associated with Etsy. The price is around .20 USD per listing, which you’ll have to pay regardless of if your product sells, or the sale price.
- Auto renew sold fees: Auto-renewed listings are set to automatically repost the listing after it’s purchased from your shop. If you set up an auto-renew, and the item needs to be relisted at the same sale price and shipping price, you’ll pay the standard .20 listing fee.
- Multi quantity listing costs; If you have various different kinds of item for a sale in one listing and a customer purchases more than one option, you’ll also have to pay a .20 listing fee for each additional item purchased.
- Private listing fees: You can set up private listings for just one person to access on Etsy, but you’ll still have to pay the .20 USD price.
Other Etsy Shop Fees
Aside from paying a listing fee to sell your handmade items online, you’ll also have a range of other costs to factor into your total Etsy fees, such as transaction fees:
Transaction fees: Etsy transaction fees are the money Etsy collects when a customer makes a purchase from your store. Unlike standard listing fees, transaction fees are only collected on listings where you make a sale. The fee structure means Etsy takes 5% of the total cost of the item, including the shipping fees.
- Payment processing fees: Other seller fees include payment processing fees. This rate and percentage varies based on the country. If you’re using Etsy payments, the payment processing fees will be charged with each transaction. You can also use other payment processors to help you sell your stickers and creative content online.
- Subscription fees: Some Etsy sellers can opt-in to the Etsy Plus subscription package, which delivers a set of tools for all kinds of growing companies. This subscription is $10 a month and helps you to enhance your presence with SEO, social media and more.
- In-person sales fees: Etsy supports the use of Square card readers for in-person sales. You can sync your Etsy listings through the Square payment processor. You’ll still need to pay the $0.20 for each payment listing
- Delivery fees: There are options to purchase postage labels from Etsy for order fulfilment. The cost of the label depends on the origin of the package, the destination, weight, and dimensions of the package. If you add things like insurance and signature confirmation, these fees will add to the total cost of the label at the point of purchase. Sellers can also purchase parcel insurance through licensed insurance carriers.
- Pattern fees: Pattern is a solution offered by Etsy to help you build a website outside of your Etsy store. If you’re already paying the offsite ads fee and want to achieve more sales opportunities, Pattern can help. You get a 30-day free trial to build your store, after that, the fee becomes $15 per month.
- Currency conversations: When calculating your Etsy costs, it’s also worth thinking about currency conversions, if you’re going to be accepting payments from other countries. Etsy will convert fees for you automatically. You can check the full costs of your currency conversation within your Etsy profile.
There are tons of tutorial guides and community support options out there to help you understand the selling price associated with an Etsy store. Our helpful Etsy fee calculator should ensure you know how much to charge per item to maintain a profit. Remember, listing costs and other fees can still apply when you’re selling a digital download, so keep that in mind when calculating your profit margin.
Hopefully, our profit calculator for Etsy will give you all the information you need to choose your pricing with care, but don’t forget to consider other potential fees.