Last Updated: January 6, 2021
Want to start selling on Etsy but don’t know exactly how much does Etsy charge? Well, then! You’ve come to the right place.
Calculating the overall cost and fees before selling is very important and if you’re not calculating then you can’t price your inventory correctly which means you can’t identify your total profit margins or maybe loss as well.
So, it’s vital to understand and calculate Etsy fees because it will help ensure that how much profit you’re going to make after selling an item.
In this article, I’ll break down Etsy’s pricing and fees to help you understand the cost of selling on Etsy, your overall expenses, and how much money you would be making when all those fees would be taken from you with a practical example at the end.
Let’s dive in.
Types of Etsy Fees
I am going first to list out the main fees associated with selling your product and then we’re going to go through an example.
So let’s list out all of the expenses that apply here for selling your item on Etsy.
1. Listing Fee
The listing fee is the cost of publishing a listing on Etsy. To list an item on Etsy, you have to create a listing for each new item.
Publishing a listing on Etsy costs $0.20, and the listings are active for four months. After that four months listing period, your listing expires and taken down unless you put it on auto renewal or renew it manually.
Regardless of whether your listed item sells or not, you have to pay that $0.20 listing fee.
2. Auto-renew fee
Etsy auto-renew fee is the fee of automatically renewing a listing and it costs $0.20 for each automatically renewed listing.
While creating your listing, you have two options for the renewal of listing:
- Auto Renew: You can set it to auto-renew so that listing will stay on your store but when the listing expires you’ll be charged $0.20.
- Manual Renew: You can also put it on manual renew so that the listing will expire and then you will have to manually go in there and decide whether or not you want to renew it.
In manual renew, you’ll not be charged $0.20 when the listing expires.
Also, keep in mind that if your bank’s currency is not USD, the amount in your currency may vary based on changes in the exchange rate.
3. Transaction Fee
Whenever you make a sale on your Etsy store, you will be charged 5% transaction fee of the price you set for each listing + 5% shipping transaction fee.
4. Multi Quantity Fee
The multi-quantity fee is a little bit confusing for a lot of people and to be honest I was also confused about it at first. It’s very important to know about the multi quantity fee because most people don’t know about it.
And, when they’re reviewing their Etsy bill at the end of the billing cycle, they usually get confused and be like how this one listing got charged multiple times. So let’s talk about it.
The multi-quantify fee is $0.20 and it is charged only when you sell multiple items from one listing in a single transaction. In simple words, for each additional quantity that was sold in single transaction then you’ll be charged $0.20 USD.
However, if you’re selling a quantity of 1 item only then the multiple quantity fee doesn’t apply to you.
You may be wondering, what if I list a quantity of 10 rings and none of the 10 sells and your listing expires then you’ll not be charged the multi-quantity fee. However, if you want to renew the listing then you’ll be charged $0.20.
3. Currency Conversion Fee
If you are selling in a specific currency that is not the same as your bank account then there is a 2.5% extra fee associated with the currency conversion for depositing that money.
6. Payment Processing Fees
In order to get paid and accept payments from buyers, you’ve to set up a payment processing and the payment processing fee varies by which payment method you’re going to use on your store and whatever country you live in.
On Etsy, you can set up either Etsy Payments or PayPal.
1. Etsy Payments
Etsy payment processing fee typically cost 3% + $0.25 and allows you to accept payment from your buyers by the following payment options:
- Credit cards
- Debit/bank cards
- PayPal
- Etsy Gift Cards and Etsy Credits
- Apple Pay
- Google Pay
- iDEAL (the Netherlands)
- Sofort (Austria and Germany)
- Klarna Invoice payments (Germany)
Etsy Payments is the primary way for accepting payments from your buyers if you live in one of these countries eligible for Etsy Payments (including the US, UK, Canada, Australia, and 30+ more).
Look at whatever country you live in and figure out what your payment processing fee costs for your country.
Location of Bank Account | Fees for Etsy Payments (% of total sale price + flat fee per order) |
Australia (domestic orders) | 3% + 0.25 AUD |
Australia (international orders) | 4% + 0.25 AUD |
Austria | 4% + 0.30 EUR |
Belgium | 4% + 0.30 EUR |
Bulgaria | 4% + 0.30 EUR |
Canada (domestic orders or orders from the US) | 3% + 0.25 CAD |
Canada (international orders) | 4% + 0.25 CAD |
Croatia | 4% + 0.30 EUR |
Cyprus | 4% + 0.30 EUR |
Czech Republic | 4% + 0.30 EUR |
Denmark | 4% + 2.50 DKK |
Estonia | 4% + 0.30 EUR |
Finland | 4% + 0.30 EUR |
France | 4% + 0.30 EUR |
Germany | 4% + 0.30 EUR |
Greece | 4% + 0.30 EUR |
Hong Kong | 4.4% + 2.00 HKD |
Hungary | 4% + 0.30 EUR |
Ireland | 4% + 0.30 EUR |
Italy | 4% + 0.30 EUR |
Latvia | 4% + 0.30 EUR |
Lithuania | 4% + 0.30 EUR |
Luxembourg | 4% + 0.30 EUR |
Malta | 4% + 0.30 EUR |
Netherlands | 4% + 0.30 EUR |
New Zealand (domestic orders) | 3% + 0.30 NZD |
New Zealand (international orders) | 4% + 0.30 NZD |
Norway | 4% + 2.50 NOK |
Poland | 4% + 0.30 EUR |
Portugal | 4% + 0.30 EUR |
Romania | 4% + 0.30 EUR |
Singapore | 4.4% + 0.35 SGD |
Slovakia | 4% + 0.30 EUR |
Slovenia | 4% + 0.30 EUR |
Spain | 4% + 0.30 EUR |
Sweden | 4% + 3.00 SEK |
Switzerland | 4% + 0.50 CHF |
United Kingdom | 4% + 0.20 GBP |
United States | 3% + 0.25 USD |
Now you may be wondering, what if I am not on the Etsy Payments eligibility list? You can use PayPal.
2. PayPal
If you’re not living in the country where Etsy Payments is eligible then you can use PayPal to accept payments from your buyers. However, PayPal charges 2.9% + $0.30 per transaction.
So, let’s say you have $18 transaction then 3% of that is $0.54 + $0.25, so your payment processing fee will be $0.79.
Final Verdict: How Much Does Etsy Charge?
There will be additional fee for Offsite Ads and some other services but these are the main Etsy fees you should keep in mind.
When it comes to the cost of selling on Etsy and fees, there will be two types of fees:
1. Etsy fees you definitely have to pay:
- Listing Fee ($0.20)
- Transaction Fee (5%)
- Payment Processing Fee (3% + $0.25)
2. Fees that depends on you, your country, currency and customers:
- Auto-renew Fee ($0.20)
- Multi-quantity Fee ($0.20 per additional quantity in a single transaction)
- Currency Conversion Fee (2.5%)
- Offsite Ads (15%). For more details, click here.
Now let me walk you through a practical example for better understand.
Etsy Fees 2020: Example For Selling on Etsy
Now, I will give you a complete example of how much money you would be making when those fees would be taken from you, which will help you to understand better.
For example, you are selling a ring on your Etsy store for $18.
Listing Fee: To list this ring on your store, you have to pay $0.20, which is listing fee.
Shipping Fee: Let’s say you’re not offering a free shipping and when the customer buys the ring then there’ll be shipping fee as well. So, let’s say the fee for shipping is $5, now the total amount that the customer paid is $23.
Transaction Fee: The transaction fee is 5% of the total cost of the item for the customer. So, 5% of $23 is $1.15.
Multi Quantity Fee: It depends on whether the customer bought more than one item or not for this example, let’s say they just bought the one ring.
Payment Processing Fee: As I already said the payment processing fee based on which country you live in let’s say you live in the USA, so the payment processing fee will be 3% of the total sale plus $0.25.
Calculation
Now I will calculate all the fees for this ring.
So, if you’re selling an item for $23 (including shipping) then the total Etsy fees for this product is going to be $2.29 and you earned $20.71 .
Now this $20.71 isn’t your profit, you’ve to subtract the shipping fee + your total cost for the item .
However there will be some taxes etc. but these are the main expenses which you have to pay to Etsy.
Final Words
Understanding the cost of selling on Etsy is confusing, many people know about the listing fee, and they think that they have to pay only $0.20 to Etsy.
Therefore, I wrote this article to help clarify things a little bit more.
Please, let me know if you are confused about any of that Etsy fees which I describe above or would like to express your opinion in the comment section.
Hi Arslan, excellent breakdown. I am reading everything before I open my store. Is there an area where shipping charges are calculated before the fee is considered. In other words, how do you know how much the shipping fees are prior to setting the price (even if you include the shipping in price, you still need to know how much). Also, what about VAT amounts and sales tax?
When does Etsy pay me? I have sold my first 4 items in the last week but no money in my bank account so far. I am sure there must be some sort of payment schedule but not sure what it is.
Thanks!
If you choose weekly deposit then you’ll get paid to your bank every Monday. However, it typically takes 2–3 days for banks to make the payment available to you.
Does Etsy charge for Digital Downloads?
Brilliant. I just made my own version excel file by using your explanation. I will definitely use it before i start my listing in etsy.
Well explained, it helped a lot. Thanks
Thank you for your article, I’ve been contemplating joining for a while and needed to find out more about costings. May I ask you, because of all the fees and various things would you recommend to sell on etsy or recommend somewhere else?
Hey Patricia, Glad you found this article helpful. I definitely recommend you to sell on Etsy especially if you’re going to sell handmade goods, vintage items, and craft supplies.
Hi Arslan, this was such a wonderfully clear and informative article! Thank you so much for doing this 🙂
You’re welcome, Sheila. Glad you found this article helpful 🙂
Thank you so much for this article. I’ve just started selling on etsy and thought I’d only incur the 5% fee until I had a nasty shock looking at my billing! You’ve made it so much clearer.
You’re welcome, Chloe 🙂
Thank you so much for the clarification. Nice to know I’m not the only selling on Etsy without fully understanding all their fees. Thanks again!
Welcome, Selene. Glad you found this article helpful 🙂
I don’t understand how Etsy can ship products??
So I sell a facemask. Say I charge 10.00 +(tax of 1.00) and shipping of 3.00. I paid .20 to list it, then 3% when I sold it of 13.00 which is .39 cents. My total would be .59 cents for one facemask. Is that correct?
I wouldn’t shy away from charging a little extra for shipping…….there is also handling and packaging costs involved. If you don’t re-coupe those, you’re losing profit. Boxes, packing tape, padded envelopes etc aren’t cheap either.
Don’t forget the fee if your buyer finds you via an etsy offsite ad….they didn’t ask me about that fee and it cost me $5….which I am not pleased about.
This was super helpful, but I’m still a little confused on the multiple quantity fee. If I’m selling apparel, would it make sense to list multiples? Also, if I only list one does that take the listing down if that one item was sold? Or is it solely so people have the option to buy more than one of the same shirt? I hope that makes sense. Thanks!
When do I get the funds from a $60 sale?
Is there a way I can get access to the Etsy calculator that you used? If if it’s just fill it with my numbers.
Hey Priscilla, I didn’t use any calculator because I know their fee structure, however, there are some Etsy fees calculators that can calculate the fees for you but I don’t use them because those calculations aren’t 100% correct.
Thanks so much for the breakdown of ETSY fees. I have been selling for 10 years and only now have a full grasp of how the fees work. Appreciate it!!
No worries, Seu. Glad you found this article helpful 🙂
How much is labels. Example if your labels are usps 5 oz and thats it. Do they charge a % or fee? To print receipts is that something that is free? I’ve been a bit confused on this.
They have the new mandatory ad fee of 15% or something. Can you talk about that and how it works?
its not mandatory.. you can stop it in ad’s section
Can you please do an update now that Etsy has changed what they charge sellers and has added the mandatory fee structure?
Hi Tracy, Etsy main selling fees are still the same.
There’s also a fee if you print your shipping label through Etsy. Also, they automagically turn on offsite advertising for your listings. If it sells with that, they take another 15%.
Example, my sale:
$40 item + 7.56 shipping paid for by the buyer
Take home after fees:
$28.53
.20 (listing fee) + 1.76 (sale fee) + 2.00 (transaction fee) + .38 (shipping label fee) + 7.13 (ad fee)
I won’t be using off-site ads ever again. I turned them off and immediately noticed about a 90% decrease in views.
Just in case anyone is wondering…
Take home from eBay after sale:
$34.54
4.00 (ebay fee) + 1.46 (paypal fee)
Your comparison is misleading, as it included ad fees for Etsy but not eBay. Without the ads, seller profit is more on Etsy.
do you have any additional fees for paypal or is that covered in the fees you describe.. Thanks in advance
Hi Patemla, If you’re living in a country where Etsy Payments are eligible then you must have to register for Etsy Payments and there will be no additional fee for PayPal because Etsy Payments already charge you for that. However if you’re living in a country where Etsy Payments are not yet eligible then you’ve to set up Standalone PayPal and you’ll have to pay PayPal fees. For more details head over to Etsy Payment Policy. 🙂
Do you know if you charge $5 for shipping but using Etsy UPS label only costs $3 is the remaining $2 given to seller or Etsy?
Hey Amy, the remaining $2 goes into the seller shop payment account however it’s not good practice to charge extra for shipping then the actual shipment charges. 😉
Thanks a lot! veryvery useful and easy to understand !
Have a wonderful day 🙂
You’re welcome Marie 🙂