Etsy provides an amazing platform for crafters, artists, and vintage sellers to turn their passion into a business. But how much does it actually cost to sell products on Etsy?
Etsy charges various fees that cut into sellers’ profits. It’s important to understand these fees so you can set prices, manage costs, and ultimately earn money.
Below we break down the main fees Etsy charges and other potential costs to run your Etsy shop successfully.
Table of Contents
Listing Fees
Every time you publish a new product listing or reactivate an old one, Etsy charges a $0.20 USD listing fee. It doesn’t matter if you list one item or 1,000 – you pay $0.20 per listing.
Listing fees add up, especially if you continually renew unsold listings. Minimize costs by only listing what will likely sell.
Transaction Fees
This is the big one. On each completed sale, Etsy charges a 5% transaction fee on the total item price including shipping and tax.
For example:
- Item price: $20
- Shipping: $5
- Tax: $2
- Total sale price = $27
- Etsy transaction fee = 5% of $27 = $1.35
So if your item sold for $20 + $5 shipping + $2 tax = $27, you would pay a $1.35 transaction fee.
Payment Processing Fees
When a customer purchases your products through Etsy payments, you also pay:
- A 3% + $0.25 USD fee on the order total
- A 25 cent listing fee if you use Etsy’s automated post-purchase discounts
Outside payment processors like PayPal also charge their own fees of around 2.9% + $0.30 per transaction.
Shipping Label Fees
If you purchase shipping labels through Etsy, they charge various fees depending on:
- Carrier (USPS, FedEx, UPS, etc)
- Service level
- Package weight and dimensions
No fees apply if you bring packages to the post office directly.
Advertising and Promotion
Options like Etsy ads allow you to pay for visibility and promotions:
- Promoted listings run $0.15-$0.30 per click
- Offsite ads are 15% of order total
- Priority placement in search costs 1-15% of order total
Paid advertising can boost sales but cuts into profits.
Pattern and Etsy Plus Fees
Additional monthly fees include:
- Pattern – $15/month for selling unlimited printable products
- Etsy Plus – $10/month for advanced shop customization
These are optional based on if you sell digital goods or want premium features.
Estimated Total Fees
As a rough estimate, plan for total Etsy fees of 8-15% of any order’s value. Actual fees vary based on pricing, shipping, processing method, and any promotions used.
The key is factoring these costs into your pricing and margins so you still profit on Etsy after all fees.
Other Potential Costs
Besides Etsy’s fees, consider these costs to run your shop:
- Materials for making products
- Product photography expenses
- Packaging supplies for shipping
- Accounting software or tools
- Production help you outsource
- Shop branding costs like logo design
- Marketing and advertising spend
Calculate all your costs to set profitable pricing that covers everything.
Tips to Reduce Etsy Fees
While Etsy fees are unavoidable, here are some tips to minimize them:
- Set higher prices to build in margin for fees
- Reduce listing renewals with good SEO and photos
- Use Etsy’s free shipping promotions during low sales times
- Carefully analyze return on ad spend before promoting listings
- Maintain excellent customer service to prevent refunds
Knowing the cost to sell on Etsy will help any Etsy seller setup a profitable business. Do the math to keep fees in check and money in your pocket.
FAQs About Etsy Fees
Does it cost money to open an Etsy shop?
It’s free to open an Etsy shop – you only pay fees once you publish listings or make sales. No subscription fees are required.
What is the cheapest payment processor for Etsy?
For digital products, PayPal tends to be cheapest. For physical goods, Etsy Payments competes well if you make over $10k annually.
How much do top Etsy sellers make in a year?
Top Etsy sellers can earn over $100,000 per year. Average annual earnings for successful full-time sellers are $30,000-$60,000.
Can you use Shopify instead of Etsy to avoid fees?
Shopify charges a monthly fee but lower transaction fees of 2.4%+30¢. It’s an alternative for established sellers who want their own site.
What is the fee for selling digital files on Etsy?
Etsy charges the same 5% transaction fee on digital products. But no shipping means potentially higher profit margins.
Selling on Etsy does come with fees – but the huge buyer audience often makes it worthwhile. Adjust pricing accordingly and sell smartly.
