This Etsy seller fees guide will run through the basic fee structures that Etsy lays out for sellers. We’ll go through the basic fee types and list additional costs and optional fees. We’ll also give you a few tips on how to minimize the fees you’ll pay.
Types of Etsy Seller Fees
Etsy has three types of basic seller fees. These are listing fees, transaction fees, and payment processing fees.
Listing Fees
Etsy’s standard listing fee is $0.20 USD for each item you out up on their marketplace. They charge this fee for all listings you create on Etsy.com or their mobile apps.
If you list multiple quantities of the same item, you only pay the $0.20 fee initially. When one of these items sells, you pay the $0.20 fee again. This is because the listing will automatically renew.
All listings expire after four months. If the item doesn’t sell within that timeframe, Etsy will charge you another $0.20 to renew the listing.
Etsy does not charge any fees to edit a listing. You only pay when you create or renew a listing.
Transaction Fees
Etsy’s transaction fees apply when a customer buys an item from your shop. You only pay this 6.5% fee on successful sales.
Etsy calculates this based on the total order amount in the listing currency you designated. This means the fee is a percentage of the sum of the item price, any taxes you collected, plus any shipping cost and gift wrapping cost you charged to the customer.
You can see the all transaction fee charges itemized separately on your Etsy Payment account statement.
Payment Processing Fees
Etsy charges a separate payment processing fee on top of the transaction fee. This fee covers the cost for processing payments made through Etsy Payments.
Etsy does not explicitly state the exact amount upfront. However, it is likely a combination of a fixed amount plus a percentage of the total sale price of the item. The exact amount also likely differs depending on your location.
The Etsy Payments Policy page clarifies that their payments processing fees apply to orders processed through their system. This means that they do not charge this additional fee if a buyer uses integrated Paypal.
To get the most up-to-date information on payment processing fees, you can contact Etsy Seller Support directly. They can provide the latest details on any potential fee structures. You can also read more about Etsy fee basics in their Help Center if you need more information.
Additional Etsy Seller Costs
Shipping Fees
Etsy does not charge any upfront fee for buying a shipping label through Etsy. What you pay is the actual postage cost. The 6.5% commission on the postage amount is part of the transaction fees Etsy charges on shipping costs.
Note that Etsy negotiates discounted rates with shipping carriers like USPS, FedEx, and UPS. Sellers can benefit from when purchasing labels through the Etsy platform. This also makes labeling very convenient while fulfilling orders.
You might sometimes have specific shipping needs that Etsy Shipping Labels can’t meet. Or, you may already have a carrier account with negotiated rates. In these cases, you can buy shipping labels directly from their websites or at their physical locations.
Factors Affecting Cost
Your shipping costs and transaction fees can increase as the distance between where you’re shipping from and to increases. Heavier and bulkier packages also generally cost more to ship. Each carrier has categories for computing costs based on package sizes and weights.
If you want faster shipping speeds, which customers expect, you will pay more than slower options. Additional services like package tracking, insurance, or signature confirmation will again increase the total postage cost. This will also subsequently increase the 6.5% transaction fee that Etsy applies.
Regulatory Operating Fees
Etsy charges a regulatory operating fee to sellers in certain regions. It applies to all sales, regardless of the customer’s location. This fee covers the increased costs of complying with local regulations.
The current locations with regulatory operating fees as of June 2024 include France, Italy, Spain, Turkey, and the United Kingdom. Sellers there need to factor this fee into their pricing strategy.
The fee is typically a small percentage like 0.25% of the total order amount, on top of transaction fees and payment processing fees. The specific percentage for each region can vary, so we recommend that you check the official Etsy Fees & Payments Policy for the most up-to-date information.
You can also contact Etsy Seller Support for any questions or to confirm the fee structure that applies to your situation.
Etsy’s Promotional Fees
Etsy Ad Benefits
If you opt into Etsy’s fee-based advertising program, you can promote your listings on Etsy and other online channels. This can help you reach a wider audience of potential customers actively searching for similar products on Etsy and beyond.
Etsy Ads operate on a cost-per-click (CPC) model. You only pay when someone clicks on your ad. You can control your advertising costs with a daily budget and by choosing relevant keywords and bids per click.
Etsy can display your ads on search engines, social media platforms, and other websites. Targeted ads help you reach potential customers who are actively searching for products like yours.
Clicks don’t guarantee sales, but successful ad campaigns with compelling copy and visuals often drive more traffic to your shop. This statistically leads to more clicks and more sales. It also helps to indirectly improve your shop’s organic search ranking on Etsy.
Offsite Ad Fees
Offsite Ad participation is optional for sales below $10,000. Etsy will then charge you 15% on the sale price (excluding the advertising fee). Offsite Ad participation becomes mandatory above $10,000, but you benefit from a discounted fee of 12% on the sale price for any order driven by an Offsite Ad.
Regardless of your sales volume, Etsy only charges the Offsite Ad fee if a customer clicks on an ad for your product and completes a purchase. You will also not pay more than $100 on an offsite ad sale.
Subscription Services and Fees
Both Etsy Plus and Etsy Pattern offer free trials, so you can test them out before committing to a monthly subscription.
Etsy Plus
Etsy Plus costs $10 per month, automatically deducted from your Etsy payment account.
This tool helps shops stand out with advanced customization options like banner themes, custom colors, and a bio. You get 15 free listing credits per month and $5 credit towards Etsy Ads to experiment with promoted listings.
Etsy Plus also gives you access to discounts on custom packaging, domain names, and business cards for brand awareness. Enjoy discounted pricing on shipping labels through Etsy, too.
With the restock requests feature, you can notify interested buyers when sold-out items come back in stock.
Etsy Pattern
Etsy Pattern costs $15 USD per month.
This tool allows you to create a custom online storefront that’s separate from the Etsy marketplace. You get your own domain name and branding with more design flexibility than the standard shop template.
You can also sell items on your Pattern store that you might not be allowed to on Etsy itself. Etsy Payments still works here for seamless checkout and payment processing.
Strategies to Minimize Etsy Fees
Optimizing Listing and Transaction Fees
Keywords
Use keyword research tools to identify relevant keywords with high search volume and low competition. Include them in your product titles, descriptions, and all 13 tag slots, aiming for clarity.
Consider longer, more specific phrases that describe your product in detail. These tend to have higher conversion rates, too.
Pricing
Look at how your competitors price similar products to yours. Aim to offer similar value at a slightly lower or competitive price point.
Make sure you factor in all your costs, not just what’s in this Etsy seller fees guide. Think about your desired profit margin, too.
Think about offering occasional discounts or running sales to increase sales volume, which can offset listing renewal fees.
Renewing Listings
Track your listings’ performance with Etsy analytics and renew the ones that are generating interest but haven’t sold yet. Renew listings for seasonal items a few weeks before peak season starts so you can catch buyers’ attention early.
Consider relisting items rather than renewing the listings if they have very low views or clicks. New listings can get better visibility in search results.
Managing Promotional Costs
Choosing the right tools can maximize the impact of your investment.
If you’re aiming to gain more exposure within the Etsy marketplace, Etsy Plus is a good idea. The features also work best for high-demand, fast-selling items.
If your goal is reaching a specific audience beyond Etsy, Etsy Ads might be the better option. Targeted advertising is great for finding the right buyers for unique, niche products.
Explore Etsy Pattern if you want a branded online store outside Etsy.
Setting Daily Budgets
Start with budgets around $1-$5 per day and increase as you get feedback on what’s working. Look at impressions, clicks, click-through rate (CTR), and conversion rate. Optimize for these at least once a month at first.
Aim for clicks that convert into sales. Track your return on ad spend to check the profitability of your campaigns.
FAQs
What are the best practices for handling VAT on Etsy sales?
- Familiarize yourself with the different VAT rates in the EU countries you might sell to. Stay updated because they can change. Check if you need to register for VAT based on your location and sales volume within the EU.
- Thresholds vary by country, so talk to a local tax authority or an accountant for guidance. Register for VAT with your local tax authority if you meet the threshold to get a VAT identification number.
- Clearly state in your listings whether the price includes VAT and communicate your VAT policies on your shop page. Etsy may automatically collect VAT on sales to customers in EU countries, but make sure you confirm.
- Maintain accurate records of your sales and VAT collected on each sale. File VAT returns with your local tax authority.
How can new sellers apply for reduced offsite ad fees?
Unfortunately, Etsy gives no direct way for new sellers to apply for reduced offsite ad fees. The structure is based on your shop’s total sales in the past year.
To reduce fees, consider focusing on organic rankings first. When you have a larger product catalog, brand awareness, and sales volume, you can fully leverage Offsite Ads.
We also suggest exploring the free trial of Etsy Plus to get 15 free listing credits per month. This can help you increase organic visibility through having more listings.
Are there any fee waivers available for high-volume sellers?
Unfortunately, Etsy doesn’t offer official fee waivers for high-volume sellers. The fee structure applies across the board. However, you can apply some strategies to potentially reduce the overall impact of Etsy fees.
- You might be able to negotiate with Etsy for reduced payment processing fees if you sell in the millions of dollars annually. This would be a rare exception, so you need to contact Etsy directly to discuss it.
- Leverage the discounted shipping rates offered through Etsy Shipping Labels.
- Use Etsy Plus to get 15 free listing credits per month.
- Opt out of Offsite Ads until your sales surpass $10,000 to get the discounted 12% fee rate.
- Streamline your listing process, order fulfillment, and customer communication to focus on selling.
What tools are available to automate fee calculations on Etsy?
Etsy doesn’t offer any built-in tools to automate fee calculations. However, you can use several external options to estimate and track Etsy fees.
Many websites offer free downloadable Etsy fee calculator spreadsheets where you can input your variables to estimate the total fees.
You can also subscribe to Etsy management tools with automated fee calculation features. These advanced tools can integrate with your Etsy shop for additional functionalities like listing management, inventory tracking, and order fulfillment automation.
Basic fee estimation is actually quite simple. You can even manually calculate the transaction fee (6.5% of total order value) and any other applicable fees based on Etsy’s published rates.
How do currency fluctuations affect Etsy’s payment processing fees?
Currency fluctuations only impact the Etsy transaction fee if they affect your listing price. They do impact the currency conversion fee (2.5% of the total order value) directly, though. That is, if your shop’s listing currency is different from the currency of your Payment account.
What Is EcomBalance?
EcomBalance is a monthly bookkeeping service specialized for eCommerce companies selling on Amazon, Shopify, Ebay, Etsy, WooCommerce, & other eCommerce channels.
We take monthly bookkeeping off your plate and deliver you your financial statements by the 15th or 20th of each month.
You’ll have your Profit and Loss Statement, Balance Sheet, and Cash Flow Statement ready for analysis each month so you and your business partners can make better business decisions.
Interested in learning more? Schedule a call with our CEO, Nathan Hirsch.
And here’s some free resources:
- Monthly Finance Meeting Agenda
- 9 Steps to Master Your Ecommerce Bookkeeping Checklist
- The Ultimate Guide on Finding an Ecommerce Virtual Bookkeeping Service
- What Is a Profit and Loss Statement?
- How to Read & Interpret a Cash Flow Statement
- How to Read a Balance Sheet & Truly Understand It
Conclusion
This Etsy seller fees guide is a good general reference to keep in front of you. As you get started on the platform, you will become more familiar with its structure. As a beginner, however, we believe this is enough to start with until you gain more experience.
