What Etsy actually takes from a sale
Etsy's fees are simple individually and surprisingly large together. On a typical handmade item they add up to 10 to 12% of what the buyer pays, and closer to 25% when a sale comes through Offsite Ads. Because several of the fees are percentages of different bases, some include shipping, one includes sales tax, it is easy to under-price. This calculator applies each fee from Etsy's published US schedule to your sale and shows what is left after your own costs.
At a glance
- Four fees apply: listing, transaction, payment processing and, on ad-attributed orders, Offsite Ads.
- Transaction and processing fees are charged on shipping too; processing also covers sales tax.
- A typical handmade sale loses 10 to 12% to fees, or about 25% through Offsite Ads.
- Price with the fee formula rather than adding a flat amount.
The four fees
listing = 0.20 × quantity transaction = 6.5% × (item price + shipping charged) processing = 3% × (item price + shipping + sales tax) + 0.25 offsite ads = 15% × (item price + shipping), only if the order came from an Etsy ad
- Listing fee. $0.20 to list an item for four months. When the item sells, the listing renews automatically and you pay $0.20 again, so in practice it is a per-sale cost. Selling three of the same item charges three renewals.
- Transaction fee. 6.5% of the item price and the shipping you charge (and any gift-wrap fee). It does not apply to sales tax.
- Payment processing. For US shops, 3% of the entire amount the buyer pays, including sales tax that Etsy collects and remits, plus a fixed $0.25 per order. Other countries have different processing rates.
- Offsite Ads. Etsy advertises listings on Google, Facebook, Instagram, Pinterest and Bing. If a shopper clicks one of those ads and buys within 30 days, you pay 15% of the order (12% if your shop made more than $10,000 in the previous 12 months). Shops under $10,000 can opt out; larger shops cannot.
| Fee | Rate | Charged on |
|---|---|---|
| Listing | $0.20 per item sold | Each listing or renewal |
| Transaction | 6.5% | Item price plus shipping charged |
| Payment processing (US) | 3% plus $0.25 | Item price, shipping and sales tax |
| Offsite Ads | 15% (12% for shops over $10,000) | Item price plus shipping, ad-attributed orders only |
Worked example: the default sale
Item $25.00, shipping charged $5.00, no sales tax, one item.
Listing $0.20. Transaction 6.5% × $30.00 = $1.95. Processing 3% × $30.00 + $0.25 = $1.15. Total fees $3.30, or 11% of the $30 you receive.
After materials ($8.00) and postage ($4.00) the profit is $30.00 − $3.30 − $12.00 = $14.70, a 49% margin on the sale.
Worked example: the same sale through Offsite Ads
Add the Offsite Ads fee: 15% × $30.00 = $4.50. Total fees rise to $7.80, 26% of revenue, and profit falls to $10.20.
The lesson: if you cannot opt out of Offsite Ads, your pricing has to absorb a 15% fee on a share of your orders.
Reading the result
The headline is the total Etsy fees on the order. Under it, the fee share tells you what percentage of your revenue Etsy keeps, the number to watch when you set prices. Net profit subtracts your costs of goods and actual postage; margin is that profit divided by what the buyer paid you. The fee breakdown table shows the basis of each fee so you can trace every cent.
If the sale loses money, or you are charging the buyer less for shipping than it costs you, the calculator says so. Under-charging shipping is one of the most common reasons Etsy shops make less than expected: the shortfall comes straight out of profit and you still pay a transaction fee on the reduced shipping charge.
Pricing with fees in mind
Because most fees are percentages, raising your price raises the fees too, you cannot simply add $3.30 to the price to cover them. To find the price that leaves a target profit, work backwards:
price = (target profit + costs + 0.20 + 0.25 + 0.095 × shipping) ÷ (1 − 0.095)
The 0.095 is the combined transaction and processing rate (6.5% + 3%). For a target profit of $15 on the example above: (15 + 12 + 0.45 + 0.475) ÷ 0.905 = $30.86 item price with $5 shipping. Add roughly a further 15% ÷ (share of orders from ads) if you are in Offsite Ads.
What is not included
- Etsy Ads (the on-site advertising you pay per click), a marketing cost, not a per-sale fee.
- Pattern, Etsy Plus and subscription fees, currency conversion fees (2.5% when your listing currency differs from your payment currency), and regulatory operating fees in the UK, EU and some other countries.
- Refunds and chargebacks. Etsy refunds the transaction fee but not the processing fee on refunded orders.
- Your overheads: packaging, tools, studio costs, your time and income tax. A 49% margin on the sale is not a 49% margin for the business.
Using the result
Run your best-selling item through the calculator at its current price, then again with Offsite Ads on. If the second number is still profitable, your pricing is sound. If not, raise the price, reduce the cost of goods, or reconsider free shipping, Etsy's search boost for free-shipping offers is real, but the shipping cost still has to be paid by someone, and the fee applies either way.