Etsy looks cheap to start: no monthly subscription, and listing an item costs just a few cents. But by the time an order is paid out, several different fees have been taken, and many new sellers only discover how much when their first payout arrives.
This guide walks through every fee Etsy charges, shows exactly how each one is calculated, and works through real examples so you can price your products with confidence. If you just want the numbers, use our free calculator below – pick your country and it fills in Etsy’s main fees for you.
The quick answer: how much does Etsy take?
For a typical US order with no ads involved, Etsy takes roughly 10–12% of the order total, plus a small listing fee. On a $30 sale with no shipping charge, that works out to about $3.30:
| Fee | How it is calculated | On a $30 sale |
|---|---|---|
| Listing fee | $0.20 per listing, charged again when it sells | $0.20 |
| Transaction fee | 6.5% of item price + shipping + gift wrap | $1.95 |
| Payment processing (US) | 3% of the order total + $0.25 | $1.15 |
| Total | $3.30 (11%) |
That is the core of it. The rest of this guide covers where those numbers come from, the extra fees that can apply, and how the picture changes in the UK, Canada and Australia.
1. Listing fee
Every time you publish a listing, Etsy charges a listing fee – US$0.20 at the time of writing, or the equivalent in your currency. A listing stays active for four months or until the item sells.
Two details catch sellers out:
- Auto-renew. If auto-renew is on, Etsy charges another listing fee every four months for items that have not sold. Old listings that never sell quietly cost you money.
- Multi-quantity listings. If you list 10 of the same item, you pay one listing fee up front, then another $0.20 each time one sells and the listing renews for the remaining stock. In practice, budget one listing fee per sale.
2. Transaction fee
The transaction fee is the biggest fee for most shops. Etsy charges 6.5% of the total amount of each sale, and that total includes:
- the item price,
- the shipping price you charge the buyer, and
- gift wrapping, if you offer it.
It does not include sales tax or VAT that Etsy collects on your behalf.
The shipping part matters. If you sell a $20 item with $5 shipping, the transaction fee is 6.5% of $25 (= $1.63), not of $20. This is why moving shipping costs into your item price to offer “free shipping” does not change your Etsy fees – the fee is charged on the same total either way.
3. Payment processing fee
When a buyer pays through Etsy Payments, Etsy charges a processing fee. It is a percentage of the order total (including shipping and tax) plus a fixed amount per order, and it depends on the country where your bank account is based. Typical rates at the time of writing:
| Seller’s bank country | Payment processing fee |
|---|---|
| United States | 3% + US$0.25 |
| United Kingdom | 4% + £0.20 |
| Canada | 3% + CA$0.25 |
| Australia | 3% + AU$0.25 |
Etsy updates these rates from time to time, so check the Fees & Payments section of your Shop Manager for the exact rate on your account. You can change any rate in our calculator under Fee settings.
4. Offsite Ads fee
Etsy advertises listings on Google, social media and other sites through its Offsite Ads programme. You pay nothing unless a buyer clicks one of those ads and buys from your shop within 30 days. When that happens, Etsy charges a percentage of the order total:
- 15% for shops that made less than US$10,000 in the last 12 months – and these shops can opt out.
- 12% for shops above US$10,000 – participation is mandatory.
The fee is capped per order (US$100 at the time of writing). Offsite Ads can be a good source of sales, but 12–15% on top of your normal fees wipes out the profit on low-margin items. Run your numbers with the Offsite Ads fee field in the calculator before deciding whether to stay opted in.
5. Other fees you might pay
- Regulatory operating fee. In some countries, including the UK and France, Etsy adds a small percentage fee to cover the cost of local regulations.
- VAT on seller fees. Sellers in the UK, EU and some other countries pay VAT on Etsy’s fees. If you are VAT-registered you may be able to reclaim it; if not, it is a real cost. Use the Tax charged on fees field to include it.
- Currency conversion fee. If you list items in a currency different from your bank account’s currency, Etsy charges a conversion fee (2.5% at the time of writing) on the sale.
- Etsy Ads. On-site advertising is optional and uses a daily budget you set.
- Shipping labels. If you buy postage through Etsy, the label cost is deducted from your payout.
- Etsy Plus. An optional monthly subscription with extra shop tools and listing credits.
Worked example: a $35 candle with $5 shipping (US)
Let’s run a realistic order through every fee. The candle costs $9 to make, $1.50 to package and $4.60 to post.
- Buyer pays: $35 + $5 shipping = $40.00
- Listing fee: $0.20
- Transaction fee: 6.5% × $40 = $2.60
- Payment processing: 3% × $40 + $0.25 = $1.45
- Total Etsy fees: $4.25 (10.6% of the order)
Your payout is $35.75. Take away the $9 product cost, $1.50 packaging and $4.60 postage, and your profit is $20.65 – a margin of about 52% on the $40 order.
Now imagine the same sale came through an Offsite Ad at 15%. That adds $6.00 in fees, and your profit drops to $14.65. It is still profitable, but the margin falls to about 37%.
Worked example: a £25 print in the UK
A UK seller sells an art print for £25 with £3.50 shipping. The print costs £4 to produce and £3.20 to post.
- Buyer pays: £28.50
- Listing fee: roughly £0.16
- Transaction fee: 6.5% × £28.50 = £1.85
- Payment processing: 4% × £28.50 + £0.20 = £1.34
- Fees before VAT: £3.35
If the seller is not VAT-registered, 20% VAT on those fees adds about £0.67, bringing total fees to £4.02. Profit after costs is roughly £17.28.
How to keep more of every sale
- Know your break-even price. Our calculator shows the lowest item price at which you stop losing money. Never run a sale below it.
- Price shipping honestly. You pay fees on shipping, so undercharging for shipping costs you twice.
- Delete listings that never sell instead of letting them auto-renew every four months.
- Bundle products. A $60 bundle pays one set of fixed fees ($0.25 processing + one listing fee) instead of two.
- Review Offsite Ads every few months if you are under the threshold and can opt out.
- Check your margin, not just your profit. Our profit margin calculator shows the price you need for the margin you want.
Frequently asked questions
Does Etsy charge fees on shipping?
Yes. Both the 6.5% transaction fee and the payment processing fee are charged on the shipping price you charge the buyer.
Are Etsy fees tax deductible?
In most countries, Etsy fees are a normal business expense. Keep your monthly Etsy statements and ask an accountant how the rules apply to you.
Why is my Etsy payout lower than I expected?
The usual reasons are Offsite Ads fees, shipping labels bought through Etsy, currency conversion, VAT on fees, or listing renewals. Your monthly statement in Shop Manager lists every deduction.
Is Etsy cheaper than eBay or Shopify?
It depends on your price, volume and where your customers come from. We compare all three with worked examples in Etsy vs Shopify vs eBay.
The bottom line
Etsy’s fees are fair for the audience it brings, but they add up to more than the 6.5% headline. Budget roughly 10–12% of each order for standard fees, more if Offsite Ads or VAT apply, and always check your numbers before setting a price. Put your own figures into the Etsy fee calculator to see exactly what you will keep.
Fees and rates in this guide were correct at the time of writing. Etsy changes its fees from time to time, so always confirm the current rates in your Shop Manager.