How Much Does It Really Cost To Sell On Etsy?

Hey there, Roshan here! If you’re like me and you’re thinking about starting an Etsy shop, you’ve probably got a bunch of questions. Top of the list might be about Etsy’s fees. You might be wondering, “Are Etsy’s fees too high?” or “How much does Etsy actually take from my sales?” Don’t worry, I’ve got you covered!

Etsy’s fees can be a bit of a maze, with quite a few twists and turns that could dip into your profits if you’re not paying attention. I’m here to break down all the fees Etsy charges so you can get a clear picture of what it really costs to sell on Etsy.

Stick with me till the end, and I’ll walk you through a case study of products at different price points and share some tips on how to handle Etsy fees better. All the numbers we’re talking about are in USD to keep things simple.

What Types Of Fees Does Etsy Charge?

• Listing Fees

Etsy charges a flat fee of $0.20 for each item you list, whether it’s a handmade vase or a digital painting. This fee applies each time you list or relist a product.

So, if a customer buys 3 items from your shop, that’s $0.60 in listing fees. Remember, listings expire after 4 months, so if your product doesn’t sell within that timeframe, you’ll need to pay another $0.20 to relist it.

• Transaction Fees

Etsy takes a 6.5% transaction fee on the final sale price, including the cost of shipping and any extras like gift wrapping. This rate has gone up from 5% back in July 16, 2018.

• Payment Processing Fee

If you’re using Etsy Payments (and you probably are if you’re in one of the 36 eligible countries), you’ll also be paying a payment processing fee. In the US, for example, this fee is 3% of the total sale price plus $0.25.

• Subscription Fee

Etsy Plus is a subscription service that costs $10 a month, offering perks like listing and ads credits, and more customization options for your shop.

• In-Person Selling Fees

If you sell in person using Square, you won’t pay Etsy’s transaction fees, but you will have to handle Square’s processing fees.

• Pattern Fee

Etsy’s Pattern lets you build a custom website for your shop for $15 a month, after a 30-day free trial. It’s a way to have a more branded online presence, though it has its limits.

• Currency Conversion Fee

Listing items in a currency different from your bank account’s can attract a 2.5% currency conversion fee.

• Regulatory Operating Fee

Sellers in some European countries pay a small fee on each sale due to increased operating costs in those regions.

• Etsy Ads

Etsy offers two types of ads: onsite and offsite. Onsite ads charge per click, while offsite ads charge a fee only when a sale is made through the ad. The fees for offsite ads range from 12% to 15%, depending on your sales.

Fee Type	Charge	Details
Set-Up Fee	$15 (one-time)	Charged during shop setup; non-refundable.
Listing Fees	$0.20 per item	Charged for each item listed; applies to renewals and multiple quantities. Listings expire after 4 months.
Transaction Fees	6.5% of total sale price (incl. shipping)	Applies to each sale made through Etsy.com.
Payment Processing Fees	Varies by country	Charged for each transaction made through Etsy Payments. US rate: 3% + $0.25 per transaction.
Subscription Fees (Etsy Plus)	$10 per month	Optional subscription offering additional shop tools and credits.
In-Person Selling Fees	Square’s fees apply, no Etsy transaction fee	Applies to sales processed through Square.
Pattern Fees	$15 per month after 30-day free trial	Monthly fee for using Pattern, Etsy’s custom website builder.
Currency Conversion Fee	2.5%	Charged if listing currency differs from payment account currency.
Regulatory Operating Fee	Varies (e.g., UK: 0.25%, France: 0.4%)	Applied to sellers in certain countries due to increased operating costs.
Etsy Ads (Onsite)	Pay-per-click	Optional; sellers set a daily budget for promoting listings on Etsy.
Offsite Ads	12% or 15% of total sale price	Charged only if a sale results from an offsite ad click. Fee percentage depends on annual sales.
Shipping Labels	Varies by carrier, weight, and dimensions	Cost for purchasing shipping labels through Etsy, if available in your location.

3 Practical Examples Of Etsy Fees

Let’s dive into how these fees play out with real products at three different price points:

1. Low-Priced Item: A bottle of essential oil selling for $15, with shipping at $3. Total Etsy fees come out to $2.16, which is about 14.4% of the product price.
2. Mid-Priced Item: A crystal necklace selling for $60, with shipping at $8. Etsy fees total $6.91, making up 11.5% of the product price.
3. High-Priced Item: A custom wedding gown priced at $900, with shipping at $50. Etsy fees reach $90.7, about 10.1% of the product price.

What Percentage Does Etsy Take?

From our examples, it looks like Etsy fees can take around 20% of the total costs. This percentage tends to decrease as the item price increases, but don’t forget about potential additional costs like Etsy ads or currency conversion fees.

Some Methods To Offset Etsy Fees

• Increase Prices: Don’t sell yourself short. Consider the true value of your work, including all the hidden costs.
• List Prices in Your Bank Account’s Currency: This simple step can save you from paying the 2.5% currency conversion fee.
• Be Selective With Etsy Ads: Control your budget by carefully choosing which listings to promote.
• Cut Costs Smartly: Look for ways to reduce expenses without sacrificing quality. Bulk buying and finding cheaper but quality materials can help.

Starting an Etsy shop is an exciting venture, and understanding the costs involved is crucial for success. By planning for these fees and optimizing your shop’s operations, you can ensure your Etsy business thrives.

Remember, it’s all about balancing the costs with the value you provide to your customers. Happy selling!

Stay updated with etsy fees structure here – https://www.etsy.com/legal/fees/