Etsy can be a confusing place - it seems that every day there is a new feature, enhancement, policy change, or fee increase to keep in the loop about.
For Etsy fees and charges, in particular, not keeping up to date with these changes can have huge impacts on your profit margins.
We have created this guide to simplify the Etsy fee situation to ensure that you have the information you need to set your product prices with confidence.
To make the Etsy fee structure even clearer, we have also provided a real-world example of how each one works.
- Why understanding your Etsy fees is important
- How do Etsy fees work?
- Etsy Listing Fees
- Etsy Transaction Fees
- Etsy Shipping Label Fees
- Etsy Payments Fees
- Etsy Pattern Fees
- Seller Subscription Packages
- Etsy Advertising Fees
- Square Fees
- Using software to keep track of your Etsy fees
Etsy is a marketplace that connects makers and buyers from around the world. The e-commerce platform takes a small cut of each sale as commission for connecting you with customers and providing valuable tools and resources to run your business.
While the fees Etsy charges may seem small, if you are selling regularly on the site, they can soon add up. This is why it’s important to have a good understanding of what each one is for, and how you can use this information to price your products correctly.
If you don’t factor in the Etsy fees when working out your product pricing, you could be selling at a loss without even realising it.🤭
Etsy has three main types of fees: listing fees, transaction fees, and payment processing fees.
We’ll go into more detail about each of these later on, but here is a quick overview of the charges you can expect to see on your Etsy bill:
|Listing fees||20 cents per listing. You are charged this fee when you create a new listing, or renew an existing one.|
|Transaction fees||6.5% of the total sale price, including shipping and taxes. You are charged this fee when an item is sold.|
|Payment processing fees||2.9% + 30 cents per transaction. You are charged this fee when an item is sold and the buyer pays using Etsy Payments or PayPal.|
|Shipping labels||Varies depending on the service you use, but starts at $0.93 for a 4x6 inch label. You are charged this fee when you purchase a shipping label from Etsy.|
|Advertising fees||12% of the total sale price. You are charged this fee when you run an ad campaign on Etsy.|
|Etsy Plus subscription||$10 per month. You are charged this fee when you sign up for, or renew, an Etsy Plus subscription.|
Keep in mind that these are just the basic fees that all Etsy sellers are charged. Depending on your business, you may also be charged other fees, such as state sales tax, GST, VAT, or import duties.
Now that we’ve answered the question “what are the Etsy fees for sellers in 2022?”, it’s time to take a more in-depth look at how each of these fees works.
This will help you to understand exactly what you are being charged for, and how you can use this information to price your products correctly.
Before we get into the details, let’s briefly take a look at how Etsy fees are charged to a seller. When you make a sale on Etsy, the fees are deducted from the total amount of the sale before the remaining balance is deposited into your account.
For example, let’s say you sell an item for $100, and the buyer pays using Etsy Payments. The transaction fee for this sale would be $6.50 (6.5% of the sale price), and the payment processing fee would be $3.19 (2.9% + $0.30). Taking also into account the listing fee of $0.20, this means that a total of $9.89 would be deducted from the sale price, leaving you with a deposit of $90.31 in your account.
You can view all of the fees that you have been charged in the past month by going to Your Account > Billing and payments > Transaction history. From here, you can also download a CSV file of your transaction history, which can be helpful for keeping track of your expenses (we’ll cover better ways of keeping track of your Etsy fees later in this article).
As we mentioned earlier, Etsy charges 20 cents per listing. You are charged this fee when you create a new listing, or renew an existing one.
Listings on Etsy never expire, but you will be charged a listing fee every four months if you don’t sell the item during that time. This is to encourage sellers to keep their listings up to date, and to remove any items that are no longer available for sale.
These are fees that are directly related to your listings on Etsy - they are generated each time you list, relist and renew your listings, either manually or via the auto-renew settings.
You’ll want to think of these as advertising fees to appear on the marketplace: Etsy is essentially charging you a fee to display your product ads on its site.
Due to this, listing fees need to be paid regardless of the size of the sale.
The good news? Etsy listing fees are currently a flat fee of $0.20 per listing, no matter what price you sell your product for.
Tip: You can avoid these listing fees altogether by signing up for an Etsy Plus subscription. With this subscription, you get unlimited listings, as well as a number of other benefits, such as early access to new features and discounts on shipping labels.
Listing Fee: Listing fees are 20c USD per listing. This provides 4 months of listing on Etsy for a single quantity of your product. When you sell your product, your listing will automatically be marked as sold and you will need to relist it if you wish to sell more of the same product via this listing.
If you don’t sell your item during the 4 month window, your listing will expire and you’ll need to pay to relist once again.
Example 1: Single Quantities
I list one coffee mug for sale on Etsy by creating a new listing and setting my quantity available to 1.
As soon as I publish my listing, I will be billed $0.20 USD.
I sell the coffee mug a week later. As I do not have auto-renew on for this listing, the listing will be set as “sold out”.
When I renew the listing, I will be charged another $0.20 USD.
If you have the auto-renew setting switched on for your listing, it will automatically be renewed at an additional cost of 20c each time a sale is made or once you hit the 4-month mark.
Example 2: Multiple Quantities
A listing fee will be generated for each quantity sold of your product. This Etsy fee is charged when the additional items are sold, rather than when listed.
For example: I have 10 coffee mugs available for sale on Etsy, so my listing fee is 20c USD.
I sell 5 coffee mugs, which reduces the quantity available to 5. As soon as each mug is sold, I am charged an additional 20c per listing, totalling $1 USD in listing fees.
If I then sell the remaining 5 coffee mugs, I will be charged another $1 USD in listing fees. In total, I have paid $2 USD in listing fees to sell all 10 of my coffee mugs.
If you are required to pay VAT, this tax will be applied to your listing fee and applied to your bill as it is a “service” provided by Etsy.
Auto Renewing Listings
Etsy charges fees for renewing a listing on Etsy. The charge will indicate the status of the listing before the renewal (i.e. active, sold or expired) and also if this was performed via an auto-renewal setting. The fee is exactly the same as the usual listing fee.
How does Etsy charge for Private Listings?
This is the fee charged by Etsy for creating a private listing for a customer. The fee is exactly the same as the usual listing fee, however the key difference is that this is charged only when the customer places the order (it’s usually when you list the product).
These are Etsy fees directly related to the sale of your item on Etsy - these are essentially commission payments that you make to Etsy to sell your products on their online marketplace.
As of April 2022, this fee is now 6.5%. We discuss the pros and cons of Etsy’s latest transaction hike here.
This transaction fee includes shipping and gift wrapping options you have charged the customer. It’s important to note that Pattern sales are exempt from Etsy Transaction Fees.
Percentage fees can be a pain to calculate by hand, so we have created a handy Etsy Fee Calculator (updated for 2022) to see how much you pay in Transaction Fees »
Example 1: Selling an item with shipping
I sell a coffee mug for $15 USD on Etsy and charge my customer $5 for shipping.
The total sale price is therefore $20 USD.
Etsy’s transaction fee on this particular sale would be 6.5% of the total sale price, including shipping, which would come to $1.30 USD.
Example 2: Selling an item with gift wrapping
I sell a coffee mug for $15 USD on Etsy and charge my customer $2 for gift wrapping.
The total sale price is therefore $17 USD.
Etsy’s transaction fee on this particular sale would be 6.5% of the total sale price, including gift wrapping, which would come to $1.11 USD.
Example 3: Selling an item with shipping and gift wrapping
I sell a coffee mug for $15 USD on Etsy and charge my customer $5 for shipping and $2 for gift wrapping.
The total sale price is therefore $22 USD.
Etsy’s transaction fee on this particular sale would be 6.5% of the total sale price, including shipping and gift wrapping, which would come to $1.43 USD.
How these fees appear in your Etsy Payment Account
Seller Fee for Sold Item(s) / Transaction Quantity Fee: This is the fee charged by Etsy for transacting the sale of an item, excluding shipping as this is billed as a separate fee below.
Shipping Transaction Fee: This is the fee charged by Etsy for the shipping component of the order.
Processing Fees VAT: If you are required to pay VAT, this tax will be applied to your transaction fee and applied to your bill.
If you use Etsy’s Shipping Labels service to post your packages, then you’ll need to be aware that there are some additional charges to consider here also.
As a quick rundown of how Shipping Labels work: sellers in the US, Australia, and Canada can purchase shipping labels for USPS, FedEx, Australia Post, and Canada Post, all directly via the Etsy site. The shipping cost itself is calculated based on a couple of different factors, including the destination, weight, and dimensions of the package.
How these Etsy fees will appear in your Payment Account
Shipping Label Fee: This is a fee relating to the purchase of a USPS, FedEx and Canada Post shipping label generated through Etsy. Costs are calculated based on the origin and the destination of the package being sent.
Shipping Label Insurance / Shipping Label Coverage: This is the insurance portion paid for an Etsy Shipping Label. For Canada Post, this is called “Postage Coverage” rather than insurance.
Shipping Label Adjustment: Any adjustments made to the final cost of the Etsy Shipping Label. This can happen if the weight or dimensions of the item later differ from what was originally specified when purchasing the label.
Shipping Label Adjustment Taxes: Any taxes relating to the shipping label adjustment.
For each sale made via Etsy Payments (previously known as “Etsy Direct Checkout”), Etsy also charges a percentage of the total sale price and an additional flat fee per order to process the payment. This is in addition to listing and transaction fees.
The percentage and flat fee vary based on where your business is located.
Example 1: Selling an item in the US
I sell a coffee mug for $15 USD on Etsy and my customer pays using Etsy Payments.
The total sale price is therefore $15 USD.
The percentage fee charged by Etsy would be 3% of the total sale price, which comes to $0.45 USD. The flat fee charged by Etsy would be $0.25 USD.
The total fee charged by Etsy for this particular sale would therefore be $0.70 USD.
Example 2: Selling an item in the UK
I sell a coffee mug for £10 GBP on Etsy and my customer pays using Etsy Payments.
The total sale price is, therefore, £10 GBP.
The percentage fee charged by Etsy would be 4% of the total sale price, which comes to £0.40 GBP. The flat fee charged by Etsy would be £0.20 GBP.
The total fee charged by Etsy for this particular sale would therefore be £0.60 GBP.
Tip: Use our free Etsy Fee Calculator to instantly see how much you pay in Etsy Payment fees for your location →
Pattern is the name of the additional Etsy channel that enables you to connect a domain name to a customized view of your listings.
While it is initially free to try Pattern for 30 days, after this period if you do not cancel you will begin to be charged a subscription fee for continued access.
The first fee will be prorated, based on when in the month you signed up. For each month after this, you will be charged the full monthly fee.
The Etsy fee for Pattern is currently $15.00 USD a month, plus any additional sales tax if applicable. This fee will be converted from USD to your nominated account currency at the market rate.
There are currently no listing or transaction fees for selling on Pattern. Usual processing fees for Etsy Payments still apply.
Other fees relating to Etsy Pattern that you may see in your Payments account include:
Pattern Domain Name Registration Fee: If you purchased your domain name via Etsy Pattern, this is the fee charged for this service.
Pattern Subscription Fee: This is the monthly subscription fee for Etsy Pattern.
Pattern Subscription Tax: This is the taxable component of the monthly subscription fee for Etsy pattern.
Pattern WHOIS Domain Privacy Fee: The fee charged by Etsy for making personal details for your Pattern domain private on WHOIS.
Pattern Domain renewal fee: When your domain name is up for renewal, you will be billed this fee.
Sellers can optionally decide to add a small fee to their order to cover the costs of gift wrapping their items. This fee also incurs a transaction fee and is billed separately to your order transaction fee as a “Gift Wrap Fee”.
As of July 2018, Etsy started to offer a range of subscription packages beginning with “Etsy Pro”. These subscriptions are billed on a monthly basis and provide the seller with additional features.
Considering joining Etsy Plus? Read our in-depth blog article here: Should you subscribe to Etsy Plus?
If you have subscribed to Etsy Plus, this charge will be billed each month. Currently, Etsy Plus is $10 USD. Depending on your location, you may also need to pay tax on this fee.
As part of the package, there are a number of discounts and credits that will appear in your payment account:
15 listing credits (which will appear as $3 credit)
$5USD advertising listing credit
These credits expire at the end of the billing cycle and disappear from your payment account if not used.
These are the Etsy fees relating to Etsy Plus you may see in your payment account:
Etsy Plus Subscription: If you have subscribed to Etsy Plus, this charge will be billed each month. Currently, Etsy Plus is $10 per month.
These Etsy fees are when you purchase google advertising, category highlight advertising or search ads.
Promoted Listings are an Etsy service that allows you to highlight your products within Etsy for specified search terms. Much like Google Ads, Promoted Listings uses a bidding auction system developed by Etsy in-house with the highest bidder for the keyword gaining the promoted spot.
Bidding is automatic and determined by the daily budget you have set, along with the quality of your listing.
How these charges will appear in your Etsy Payment Account
Promoted Listing Fee / Seller fee for Search Ads: Promoted Listings can be purchased that highlights your products within Etsy for specified search results. This is a bidding system operated by Etsy and works in much the same way as Google Shopping Ads.
Square In Person “Quicksale” Fees: When listings are not synced from a seller’s Etsy shop inventory to Square, Etsy will charge $0.20 USD per transaction as a “Square Quicksale Fee”.
Offsite Etsy Ads
Etsy advertises your products on display ads and other types of ads across the web. That means a customer may be browsing on a blog, see your product, click through, and purchase your item.
Offsite ads may display your products on a range of different external sites.
Instead of being charged per click for advertising, Etsy charges you when a person clicks through and purchases from your store - this works much like a regular affiliate-type situation in that it is a percentage of your total sale.
As of 2022, there is an Etsy fee of 15% of the total transaction if you have sold less than $10,000 of products in the last year. This fee drops to 12% if you have earned above this. It’s important to note that this fee is charged in addition to all of the regular Etsy fees, and includes the amount you charge in shipping.
Due to new international laws, Etsy as a marketplace is now regulated to collect and remit taxes for several countries and US states. This means that the relevant tax will be added to your sale automatically as part of the checkout process.
This tax is then directly billed to you as a tax fee so that Etsy can pass it on to the relevant authority.
Sales Tax: This is incurred when a sale you have made is required to have sales tax paid on it. This is also applied to countries such as Australia.
VAT Tax Fee / VAT Seller Services: This is the tax calculated on any seller service you have purchased directly from Etsy if this is applicable to your location.
If you list items in a currency that are different to your bank account’s currency (i.e. USD and your bank is in CAD), Etsy converts your funds from Etsy Payments to your bank’s currency on your behalf.
This is an Etsy fee that is applied at 2.5% over the current market rate.
This fee is in addition to any bank fees you may incur.
Way back in 2018, Etsy announced a partnership with Square that allows sellers to sync their inventory to Square and thus sell their products directly via Square’s in-person card reader technology.
For any in-person sale made via a Square POS reader that has been synced to your Etsy inventory, Etsy will charge the default Transaction and Listing Fees in exactly the same way as if the sale was made directly on Etsy.
If the listings are not synced directly from your Etsy inventory, you will be charged $0.20 USD per transaction.
For both situations, Square will also charge additional payment processing fees based on their pricing schedule. More details on the breakdown between Etsy and Square can be found in the Square Fees chapter later in this book.
Etsy does not charge additional fees for items sold through Square via inventory sync. Listings synced through Square will have the same $0.20 auto-renewal fee as listings sold on Etsy.
When listings are not synced from a seller’s Etsy shop inventory, Etsy will charge $0.20 USD per transaction.
Square will charge additional processing fees that vary by the type of sale.
Understanding (and most importantly anticipating) your Etsy fee bill can be an almost impossible task for sellers on Etsy.
This is because the fees are applied in real-time as orders come in, and can be different each month due to the way that Etsy’s eCommerce platform works (e.g. if an order is canceled, or if you have a lot of large sales in a month).
This is where using a tool like Craftybase can help.
Craftybase connects to your Etsy shop and downloads all of your sales data automatically. This includes details of the listing, the buyer, any coupons used and most importantly - the fees charged by Etsy.
This data is then used to generate useful reports and dashboards that help you understand your business, so that you can make better decisions about things like pricing, marketing and product development.
And because all of your Etsy data is stored in one place, it’s easy to see how your business is performing overall, rather than just looking at your Etsy fee bill in isolation.
To get started tracking your Etsy fees (and a whole lot more), head over to Craftybase and sign up for a free 14-day trial.
There’s no credit card required and you can cancel at any time.