Britain: 4% processing and the 0.48% regulatory fee
A British seller pays two things an American one does not. Payment processing is 4% plus £0.20 rather than 3% plus a quarter, and a regulatory operating fee of 0.48% of the item price plus the shipping you charge is added to every order. Etsy raised that fee from 0.32% on 22 June 2026, so a shop turning over £40,000 a year now hands over roughly £64 more for listings that did not change.
The listing fee is £0.16, and that is not a British price. Etsy bills USD 0.20 and converts it, so the figure moves with the exchange rate rather than with any Etsy announcement.
Nothing else is unusual. The transaction fee is the ordinary 6.5% and Offsite Ads the ordinary 15%, and the regulatory fee sits on the same base as the transaction fee: item price plus shipping, never VAT. Etsy does charge VAT on its own fees to British sellers who have not given it a VAT registration number, and the figures here are the fees before that tax.
Worked example: a £40 item with £5 shipping
Listing £0.16. Transaction 6.5% of £45.00 = £2.93. Processing 4% of £45.00 plus £0.20 = £2.00. Regulatory 0.48% of £45.00 = £0.22.
Total £5.31, 11.8% of the £45 the buyer pays you.
The same order on the American schedule would cost £4.73. The 4% processing rate adds £0.40 and the regulatory fee £0.22, and the British listing fee is 4p cheaper, so the net difference is
£0.58, about 1.3% of revenue, on every order.