Etsy Fees: How Much Does Etsy Charge? – (2020 Updated)

Confused about Etsy Fees?

A common question from many people who want to start their e-commerce business on Etsy and that is, how much does Etsy charge?

Don’t worry!

I am going to talk about Etsy fees to help you understand the cost of selling an item on Etsy, what are your expenses, and how much money you would be making when all those fees would be taken from you.

Let’s dive in.

Etsy Fees: See Exactly How Much Does Etsy Charge?

I am going first to list out all of the 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.

Listing Fee

The listing fee is the cost of publishing a listing on Etsy. To list an item on the Etsy platform anytime, you have to create a listing.

Publishing a listing to the Etsy marketplace costs $0.20, and the listings are active for four months.

At the end four months listing period, it’s taken down unless you put it on auto renewal.

You have two options for renewal of listing:

Auto Renew: You can set it to auto-renew so that listing will stay on your store and then every four months you will charge 20 cents.

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.

Whether your item sells or not you have to pay that $0.20 listing fee.

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.

Transaction Fee

Whenever you make a sale on your Etsy store, you will be charged a 5% transaction fee of the cost of the item you display.

It also includes the amount you charge for delivery and gift wrapping as well.

Example: You are selling an item for $18, and the shipping is $5 then you have to pay 5% transaction fee of that $23 sale which should be $1.15.

Multi Quantity Fee

The multi-quantity fee is a little bit confusing for a lot of people and to be honest, and I was also confused about it at first.

Let’s talk about it.

If you sell multiple quantities of the listing in a single transaction, then you’ll be charged $0.20 (20 cents) for each item beyond the first one.

Example: You added 1 listing into your Etsy store, in that listing, you list a quantity of 3 bowls, and you only sell 1 bowl over four months.

When the listing expires you will be charged $0.40, $0.20 is for the listing fee and $0.20 for the 1 bowl you sold, and if you sold 2 bowls, you would be charged $0.60 and so on.

It’s very important because a lot of 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.

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.

Example: Let’s say you are from Canada, and you sell your item on our store in U.S. dollars because your warehouse is in the United States.

As you live in Canada then definitely your bank accounts are in Canadian, so you will be charged a 2.5% currency conversion fee after conversion to receive your money.

Payment Processing Fees 

The payment processing fee varies by whatever country you live in.

Look at whatever country you live in and figure out what your payment processing fee costs for your country.

Example: If you live in USA the payment processing fee is 3% of the total transaction + $0.25.

So, let’s say you have $18 transaction then 3% of that is $0.54 + that $0.25, so your payment processing fee will be $0.79.

Shipping Label Fee

It will let you ship orders with USPS, FedEx, or Canada Post directly from your Etsy store.

If you purchase shipping labels through Etsy, then you get a 30% discount.

Keep in mind the fees are based on your selections when you’re buying the shipping labels.

Other little stipulations are depending on what you’re doing in your store and how you’re using the platform, but these are the main fees associated with the cost of selling on Etsy.

A Complete 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: When the customer buys it, let’s say the fee for shipping is $5 so 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.

For this ring, the fee will be $0.94.

Calculation

Now I will calculate all the fees for this ring.

Retail Price = $23

Listing Fee = $0.20

Shipping Cost = $5 (It will be paid by your customer)

Transaction Fee = $1.15

Payment Processing Fee = $0.94

Total Fee = $2.29

$23 – $0.20 – $1.15 – $0.94 = $20.71

So, you will receive $20.71 there will be some taxes etc. but these are the main expenses which you have to pay to Etsy.

Note:

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 write this article to help clarify things a little bit more.

Please, let us 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.