Etsy fee structure (2024)
Selling on Etsy involves multiple fees that can significantly eat into your margin. Understanding each one is essential to pricing your products profitably.
Current Etsy fees
- Listing fee: USD $0.20 per item listed
- Transaction fee: 6.5% of item price plus shipping charged to buyer
- Payment processing: 3% + $0.25 per transaction (Etsy Payments)
- Offsite Ads fee: 15% on sales driven by Etsy's external advertising (12% if over $10,000/year)
Pricing tip: The break-even price is your absolute minimum. For a sustainable business, aim for at least 30–40% profit margin after all fees and costs. Don't forget to factor in your time!
Reducing your Etsy costs
- Bundle shipping cost into your item price and offer "free shipping" — Etsy favours these listings
- If eligible (under $10k/year), opt out of Offsite Ads
- Use Etsy's discounted postage labels where available
- Review your pricing regularly as material costs change