Etsy Fees: An Ultimate Guide and Cost Breakdown

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Etsy Fees: Intro

Most people consider Etsy fees to be extremely reasonable, especially for the great service that they provide.  I also think that the fees are reasonable, but the fee breakdown can be confusing. This is especially true for beginners or people starting to open their first handmade shop.  I created this post to help explain all of the fees that Etsy charges.  If you don’t have time to read this expansive guide, you should at least look at some of my examples below. This will help you get a ballpark idea for how much Etsy charges in fees, and what kind of fees they charge.

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Unbiased Information

I do not own any stock in Etsy or any other handmade marketplace. I am completely independent, and this is an unbiased review.  Learn why I suggest opening a handmade shop on Etsy..

Etsy Fees: The Ultimate Guide & Cost Breakdown

Part of Etsy’s culture is to provide great service for a reasonable price.  As a result, their fees are reasonable and affordable.  Learn about all of the Etsy fees below.

Part 1.  Regular Etsy Fees

Etsy Listing Fee

Etsy Listing Fees

Etsy charges $0.20 for each item that you list for sale on their marketplace.  Each listing is valid for 4 months.  After four months, you will have to pay an additional listing fee of $0.20 in order to renew/relist the item.  Since this fee is charged as soon as the item is listed, you will be charged a listing fee whether or not the listed item sells.  There is no fee for editing a listing. If you include multiple quantities of the same item, the initial listing fee will be $0.20, and the listing will be automatically renewed at $0.20 after each additional item sells.  The only exception to the upfront listing fee is for private listings.  Private listings are charged the $0.20 fee when the item is sold.

Auto-renewal:  As mentioned above, you may choose to enable automatic renewals. The listings will automatically renew at the end of each four-month listing period and you will be charged the listing fee of $0.20 for each of these listings until you cancel automatic renewals. You may cancel automatic renewals at any time by selecting “Manual” instead of “Automatic” in the “Renewal Options” in the Listings Manager. Once you cancel, you will only be charged for the current listing period.


Etsy Transaction Fee

Etsy Transaction Fees

When an item is sold on Etsy, you will be charged a transaction fee of 3.5% of the price you display for each listing. If you sell from the US or Canada, the transaction fee will not apply to the shipping cost, sales tax, Goods and Services Tax, or Harmonized Sales Tax, unless you have included those charges in your listing price. If you sell from anywhere other than the US and Canada, the transaction fee will apply to the listing price (which should include any applicable taxes), but will not apply to the shipping cost.  Transaction fees will appear on your Etsy bill.


Etsy Payment Fee

Etsy Payment Processing Fees

Etsy Shops & Etsy Studio Shops may use Etsy Payments to accept credit/debit card payments through Etsy.  Etsy charges a payment processing fee for processing each transaction through Etsy Payments. Payment processing fees vary based on the location of your bank account (see below). This fee is assessed on the total amount of the sale, including tax and shipping.  Unlike other fees, the payment processing fee is deducted from the transaction amount as the funds become available for deposit.   As a result, the payment processing fees will be reflected in your payment account, rather than on your Etsy bill.  I created the chart below to summarize the payment fees:

etsy cost breakdown

 

Remember that the payment fees are based on the total sale price including tax and shipping.

Paypal Etsy Checkout Fees

Shop owners can also choose to use Paypal to accept credit/debit card payments, and they charge fees similar to the Etsy Payment fees.  The current PayPal fee for sellers is 2.90% + $0.30 per item fee.


Etsy Fee Examples

 Examples

I have included some examples below to give you an idea of the fee total for an item sold on Etsy using Etsy payment processing:

#1  A shop in the US sells an item for $50 + $20 Shipping = $70 total price.  The fees would be $0.20 (listing) + $1.75 (transaction) + $2.35 (payment) = $4.30

#2 A shop in Canada sells an item to the US customer for $25 + $20 Shipping.  The total fees would be $0.20 + $.88 + $2.05 = $3.13

#3 A shop in France (or any other EU general pricing country) sells an item to a customer anywhere for $100 + $50 Shipping.  The total fees would be $0.20 + $3.50 + $4.50 = $8.20


Part 2.  Optional Etsy Fees

Etsy Advertising Fee

Advertising Fees

If you advertise a product listing through Etsy, it is called a “promoted listing.”   A promoted listing will show up at the top of the Etsy search results.  The advertising fees vary by opportunity and will be clearly summarized and explained prior to your order.  You will be able to set several options/parameters including advertising budget, and Etsy will not charge you more than your daily budget. Advertising fees appear on your Etsy bill.  Paying for advertising through Etsy is not necessary.  I have discovered other free methods to market your products which I outline in the market section My Handmade Hub.


Etsy Shipping Fee

Shipping Fees

Etsy offers sellers based in the United States and Canada the ability to purchase shipping labels to fulfill their orders through USPS and Canada Post, respectively. The cost of the shipping label will depend on the origin and destination and weight and size of the package. If you add signature confirmation or insurance, those fees will be added to the total cost of the label at the point of purchase. Sellers who purchase shipping labels may also purchase parcel insurance through licensed insurance carriers. You must accept Etsy Payments or PayPal as payment methods to purchase shipping labels through Etsy. Shipping fees will appear on your Etsy bill.  I have an entire category for shipping and handling on My Handmade Hub.


Etsy Wholesale Fee

Wholesale Fees

Etsy launched the private “Wholesale” section of their website in August 2014.  All sellers and buyers in this section must apply and be accepted by Etsy.  Once accepted, Etsy charges a $100 initiation fee which is non refundable.  All sales made on Etsy Wholesale incur the standard transaction fee of 3.5% of the wholesale price (excluding taxes and shipping costs), and the standard Etsy payment fees. Wholesale fees will appear on the Etsy bill.


Etsy Pattern Fee

Pattern Fees

Etsy “Pattern” is a paid service allowing you to further customize the appearance of your Etsy shop.  You can try the pattern tool to create a personalized website for free for 30 days. After the 30-day free trial, you’ll be charged a monthly subscription fee of $15.00 USD. Your first month’s bill will be pro-rated, and you will be charged the full subscription fee for each subsequent month you use Pattern. 


 

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Etsy Fees: Conclusion

Although I consider Etsy fees to be extremely reasonable, they can also be a bit confusing.   I hope that this detailed guide has helped you discover some of the main facts dealing with Etsy fees.  Feel free to contact me if you have any questions!  Now you’re ready to learn how to open your Etsy shop!

Keep growing!

Rachel

 

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