You just made your first Etsy sale. Exciting, right? Then you check your payment summary and wonder where a chunk of your profit went. If you have ever felt confused by Etsy fees, you are not alone. Between listing fees, transaction fees, payment processing, and optional services, understanding what Etsy actually charges can feel like solving a puzzle.
This guide breaks down every Etsy fee you will encounter in 2026. By the end, you will know exactly how much selling on Etsy costs and how to calculate your true profit margins.
Quick Overview: What Does Etsy Charge Sellers?
Before diving into specifics, here is a snapshot of all Etsy selling fees:
| Fee Type | Cost | When It Applies |
|---|---|---|
| Listing Fee | $0.20 | Per listing, every 4 months |
| Transaction Fee | 6.5% | On total sale price + shipping |
| Payment Processing | 3% + $0.25 | On total transaction amount |
| Offsite Ads | 12-15% | Only when ads result in a sale |
| Etsy Plus | $10/month | Optional subscription |
| Pattern | $15/month | Optional website builder |
Now let us break down each fee so you understand exactly what you are paying for.
Listing Fees: The $0.20 Starting Point
Every item you list on Etsy costs $0.20. This fee applies whether or not your item sells. Here is what you need to know:
When you pay the listing fee:
- When you first publish a listing
- Every 4 months when the listing auto-renews
- Each time an item sells (for multi-quantity listings)
Example calculation: If you list 50 items, your upfront listing cost is $10.00 (50 x $0.20). After 4 months, unsold items renew automatically, charging another $0.20 each.
For multi-quantity listings, you pay $0.20 each time a unit sells. If you list 10 identical items in one listing, you pay $0.20 upfront. When someone buys one, another $0.20 listing fee applies to the next available unit.
Private listings also incur the $0.20 fee, so factor this into custom order pricing.
Transaction Fees: The 6.5% Cut
Etsy charges a 6.5% transaction fee on every sale. This percentage applies to the total sale amount, which includes:
- Item price
- Shipping cost charged to the buyer
- Gift wrapping fees (if applicable)
What is NOT included:
- Sales tax collected
Example calculation: You sell a handmade candle for $25 with $5 shipping.
Transaction fee = 6.5% x ($25 + $5) = 6.5% x $30 = $1.95
This fee is the same regardless of your sales volume or how long you have been selling on Etsy.
Payment Processing Fees: 3% + $0.25
When buyers pay through Etsy Payments (which is mandatory in most countries), Etsy charges a payment processing fee. In the United States, this is 3% of the total transaction plus $0.25.
The total transaction includes:
- Item price
- Shipping
- Sales tax
Payment processing rates by country:
| Country | Rate |
|---|---|
| United States | 3% + $0.25 |
| United Kingdom | 4% + 0.20 GBP |
| Canada | 3% + $0.25 CAD |
| Australia | 3% + $0.25 AUD |
| European Union | 4% + 0.30 EUR |
Example calculation: Same $25 candle with $5 shipping, plus $2.40 sales tax.
Payment processing = (3% x $32.40) + $0.25 = $0.97 + $0.25 = $1.22
Payment processing fees apply to the full amount including tax, even though you do not keep the tax portion. This often surprises new sellers.
Offsite Ads Fee: 12-15% on Ad-Driven Sales
Etsy runs ads for your products on Google, Facebook, Instagram, and Pinterest. When someone clicks these ads and buys your item within 30 days, you pay an offsite ads fee.
Fee structure:
- 15% for sellers making under $10,000/year
- 12% for sellers making $10,000+/year
Important details:
- Sellers with under $10,000 in annual sales can opt out
- Sellers with $10,000+ annual sales CANNOT opt out
- The fee applies only when offsite ads directly result in a sale
- Maximum fee is capped at $100 per order
Example calculation: Your $30 sale came from an offsite ad click. If you make under $10K annually:
Offsite ads fee = 15% x $30 = $4.50
If you are just starting out and prefer to control your own marketing costs, you can disable offsite ads in your shop settings. Sellers who have grown past the $10K threshold must participate in the program.
Shipping Label Fees
Etsy offers discounted shipping labels through partnerships with USPS, FedEx, and UPS. You pay the label cost, but there is no additional Etsy fee on top of the carrier rate.
Benefits of Etsy shipping labels:
- Discounted rates compared to retail pricing
- Integrated tracking updates
- Insurance options available
- Labels print directly from your Etsy dashboard
Example savings: A USPS Priority Mail label that costs $9.50 at the post office might cost $7.80 through Etsy. The savings add up when you ship frequently.
Compare Etsy shipping rates with other platforms like Pirate Ship or your own carrier accounts. Depending on your volume, you might find better deals elsewhere.
Etsy Plus: The $10/Month Subscription
Etsy Plus is an optional subscription that costs $10 per month. Here is what you get:
Included features:
- 15 listing credits per month ($3 value)
- $5 credit for Etsy Ads monthly
- Customization options for your shop (banners, featured listings)
- Restock requests for sold-out items
- Discounts on custom web addresses
- Advanced shop analytics
Is it worth it? If you list at least 15 new items monthly and use Etsy Ads, the credits alone cover the $10 cost. The additional features are essentially free at that point.
For sellers who list items less frequently or do not use Etsy Ads, the subscription may not provide enough value.
Pattern: Standalone Website for $15/Month
Pattern is Etsy's website builder that creates a standalone store synced with your Etsy inventory. It costs $15 per month after a 30-day free trial.
What Pattern includes:
- Custom domain support
- No Etsy transaction fees on Pattern sales (payment processing still applies)
- Synced inventory with your Etsy shop
- Professional website templates
The catch: You still pay Etsy's payment processing fees on Pattern sales. And building traffic to a standalone site requires significant marketing effort compared to leveraging Etsy's existing marketplace traffic.
For most sellers, Pattern makes sense only if you already have an audience you want to direct to your own branded experience.
Complete Fee Calculator: Real-World Examples
Let us walk through two realistic scenarios to see total Etsy fees in action.
Example 1: Handmade Jewelry Sale
Sale details:
- Item price: $45
- Shipping charged: $4.50
- Sales tax: $3.96
- Offsite ads: No
Fee breakdown:
| Fee Type | Calculation | Amount |
|---|---|---|
| Listing fee | Flat rate | $0.20 |
| Transaction fee | 6.5% x $49.50 | $3.22 |
| Payment processing | (3% x $53.46) + $0.25 | $1.85 |
| Total fees | $5.27 |
Your actual revenue: $45.00 - $5.27 = $39.73 (before product costs)
Effective fee rate: 11.7% of item price
Example 2: Vintage Clothing with Offsite Ad
Sale details:
- Item price: $85
- Shipping charged: $8.50
- Sales tax: $7.48
- Offsite ads: Yes (seller under $10K/year)
Fee breakdown:
| Fee Type | Calculation | Amount |
|---|---|---|
| Listing fee | Flat rate | $0.20 |
| Transaction fee | 6.5% x $93.50 | $6.08 |
| Payment processing | (3% x $100.98) + $0.25 | $3.28 |
| Offsite ads fee | 15% x $93.50 | $14.03 |
| Total fees | $23.59 |
Your actual revenue: $85.00 - $23.59 = $61.41 (before product costs)
Effective fee rate: 27.8% of item price
Offsite ads can significantly impact your margins. If you are under the $10K threshold, consider whether opting out makes sense for your business model.
Hidden Costs to Consider
Beyond direct fees, factor these into your Etsy selling costs:
Currency conversion fees: If you sell internationally and receive payments in a different currency, Etsy charges 2.5% for currency conversion.
Listing renewal on expired items: If you manually renew an expired listing instead of creating a new one, you pay the $0.20 fee again.
Multi-quantity fee timing: Each unit sold triggers a new listing fee, which can add up for high-volume items.
Refund handling: If you refund a sale, Etsy keeps the payment processing fee. You get back the transaction fee, but not the payment processing portion.
How to Reduce Your Etsy Fees
While you cannot avoid most Etsy fees, you can make strategic decisions to keep more of your profit:
1. Price strategically Build fees into your pricing from the start. If your target profit margin is 50%, account for the 11-15% effective fee rate when setting prices.
2. Opt out of offsite ads (if eligible) Sellers under $10K annually can disable offsite ads. If you prefer to manage your own marketing, this can save 15% on some sales.
3. Offer free shipping strategically Etsy's algorithm favors free shipping listings, but remember that transaction fees apply to shipping too. If you increase item price to cover shipping, you pay fees on a higher base.
4. Batch your listings Since listing fees are per-item, carefully plan your inventory additions rather than listing one item at a time impulsively.
5. Use Etsy shipping labels The discounted rates can add up to meaningful savings over time.
Etsy Fees vs. Other Marketplaces
How do Etsy fees compare to other platforms? Here is a quick comparison:
| Platform | Transaction Fee | Payment Processing | Listing Fee |
|---|---|---|---|
| Etsy | 6.5% | 3% + $0.25 | $0.20/listing |
| eBay | 12.9% (most categories) | Included | Free (up to 250/month) |
| Shopify | 0% | 2.9% + $0.30 | Monthly subscription |
| Amazon Handmade | 15% | Included | None |
Each platform has trade-offs. Etsy's lower transaction fee is offset by the payment processing fee charged separately. eBay's higher percentage includes payment processing but offers more listing flexibility.
If you sell on multiple platforms, using a cross-listing tool can help you manage inventory across marketplaces without manually updating each one. This becomes especially important when calculating fees across different platforms.
Frequently Asked Questions
How much does it cost to start an Etsy shop? Opening an Etsy shop is free. You only pay when you list items ($0.20 each) and make sales.
Does Etsy charge monthly fees? No mandatory monthly fees exist. Etsy Plus ($10/month) and Pattern ($15/month) are optional subscriptions.
Can I avoid Etsy transaction fees? No. The 6.5% transaction fee applies to all sales. It is non-negotiable regardless of sales volume.
Are Etsy fees tax deductible? Yes. Etsy fees are considered business expenses and can be deducted when filing taxes. Keep your payment account statements for records.
How do I see my Etsy fees? Go to Shop Manager > Finances > Payment account to view detailed fee breakdowns for each transaction.
Plan Your Profits with the Full Picture
Understanding Etsy fees is the first step toward building a profitable shop. Most successful Etsy sellers see effective fee rates between 11-15% (without offsite ads) or 25-30% (with offsite ads on qualifying sales).
When pricing your items, factor in these costs alongside your materials, time, and shipping expenses. A $50 item might seem like solid revenue until you subtract the $5-7 in fees, $15 in materials, and $8 in shipping supplies.
Want to track your actual costs across multiple selling platforms? Tools like Voolist's profit calculator can help you understand your true margins on each marketplace.
If you sell on both Etsy and other platforms like eBay or Shopify, keeping inventory synced becomes another challenge. When an item sells on Etsy, you need to remove or update it elsewhere to avoid double-selling. Inventory sync tools handle this automatically, saving you time and preventing the headache of overselling.
The bottom line: Etsy fees are predictable once you understand the structure. Use the calculator examples in this guide to estimate your costs before listing, and you will never be surprised by your payment summary again.
