Etsy is beloved by craft sellers for its targeted buyer audience, but its fee structure can be confusing. Here is exactly what Etsy charges and how to calculate your real profit on every sale.
Use the Etsy Fee Calculator to see your exact net profit per listing.
Etsy's Complete Fee Breakdown
Listing Fee: $0.20 per item
Every item you list on Etsy costs $0.20. Listings are valid for 4 months or until the item sells. When an item sells, it is automatically renewed at another $0.20.
For items you sell in multiple quantities, Etsy charges $0.20 each time a quantity sells and the listing renews. Selling 10 units of the same listing costs $2.00 in listing fees.
Transaction Fee: 6.5%
Etsy's transaction fee is 6.5% of the total payment you receive from the buyer, which includes:
- Item price
- Shipping charges
- Gift wrapping fees
This is applied before the payment processing fee is deducted.
Payment Processing Fee (Etsy Payments)
Etsy Payments is mandatory in most countries. The fee varies by location:
- US: 3% + $0.25
- UK: 4% + £0.20
- Canada: 3% + C$0.25
- Australia: 3% + A$0.25
- Eurozone: 4% + €0.30
Etsy Ads (Optional)
Etsy Ads are optional but widely used. You set a daily budget and pay per click. Cost-per-click varies by niche, typically $0.10-0.50. Factor this into your pricing if you rely on Etsy Ads for visibility.
Offsite Ads
Etsy automatically enrols all sellers in Offsite Ads, which promotes your listings on Google, Facebook, and Instagram. You only pay when you make a sale from an offsite ad: 15% for sellers with under $10,000 annual revenue, 12% for higher-revenue sellers. Sellers below $10,000 annual revenue can opt out.
Real Example: £30 Handmade Item Sold in the UK
- Sale price: £30.00
- Listing fee: £0.20 (per-sale renewal)
- Transaction fee (6.5%): £1.95
- Payment processing (4% + £0.20): £1.40
- Total Etsy fees: £3.55
- Net before materials/labour: £26.45
Total fee rate: 11.8% (not including Offsite Ads)
Tips to Protect Your Etsy Margins
- Price to cover all fees from the start - most Etsy sellers undercharge. Add listing + transaction + processing fees to your costs before setting prices
- Free shipping vs charged shipping - transaction fees apply to shipping too, so whether you charge for shipping or offer free shipping does not change your total Etsy fees (but free shipping can increase conversion rates)
- Bundle listings - selling items as a set in one listing means one listing fee per sale rather than multiple
- Monitor your Offsite Ads spend - track which sales came from Offsite Ads so you know your true effective fee rate
- Review pricing regularly - Etsy increased its transaction fee from 5% to 6.5% in 2022. Always check current rates
Calculate your exact margins with the Etsy Fee Calculator and compare against other platforms with the Seller Fee Comparison tool.
Related reading: Amazon vs eBay vs Etsy Fees: Complete 2026 Comparison