How Much Does It Cost to Sell on Etsy? Breaking Down Etsy’s Fees

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.

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.


  • Gio Watts

    Gio Watts brings over 10 years of digital marketing experience to his role as marketing manager at Walletminded. In his current position, Gio oversees brand marketing, campaign management, and audience growth initiatives. Prior to joining Walletminded, Gio held marketing roles at several ecommerce and SaaS startups, most recently serving as senior marketing manager at CloudTable Inc. There, he specialized in paid social advertising and content marketing. Gio holds a bachelor’s degree in business marketing from the University of Oregon. He is a certified content marketing specialist and frequently guest lectures at his alma mater. When he's not devising omni-channel marketing campaigns, you can find Gio coaching youth basketball and indulging his passion for live music.

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