How Etsy Fees Work
Etsy fees aren't always what new sellers expect -- they're more complicated than PayPal or Stripe. It's not one flat percentage, but several fees tacked onto every sale. Listing, transaction, payment processing, and a regulatory fee all combine on a single order.
Etsy Fee Breakdown
| Fee Type | Rate | Applies To |
|---|---|---|
| Listing fee | $0.20 | Per listing (on creation, renewal, sale) |
| Transaction fee | 6.5% | Item price + shipping |
| Payment processing | 3% + $0.25 | Total sale amount |
| Regulatory fee (US) | 0.45% | Total sale amount |
| Offsite ads (under $10K) | 15% | If sale came from Etsy ad (optional) |
| Offsite ads ($10K+ revenue) | 12% | If sale came from Etsy ad (mandatory) |
Each Fee Explained
A flat $0.20 fee covers each item listed. This charge applies upon initial listing and recurs every four months for renewal, plus again when the item sells. Selling multiple units from a single listing triggers the fee for each individual purchase.
Etsy now charges 6.5% of the total sale price, covering shipping too. That fee is where Etsy makes most of its money from each order. The increase from 5% in 2022 sparked frustration among sellers.
Etsy Payments adds a 3% processing cost and a $0.25 flat fee per transaction. It's comparable to Stripe or PayPal, yet the charge is in addition to the existing transaction fee.
Etsy introduced a 0.45% regulatory operating fee for US sellers. It's designed to cover the platform's increasing costs related to compliance.
Many Etsy sellers really dislike Offsite Ads. When a customer clicks an Etsy-run ad and buys from you, they tack on a 15% fee (or 12% if you make over $10,000 a year). Shops exceeding $10,000 in annual revenue must participate, but those below that amount can choose to opt out.
Real Cost Example
Etsy's standard fees on a $30 item with $5 shipping come to roughly $4.18 -- about 14% of the item price. However, if the order arrives via an Offsite Ad, those fees climb sharply to around $9.43.
Tips to Keep More of Your Sales
- Price 15-20% higher than other platforms -- factor in those extra fees so your margins stay healthy.
- Build shipping into the item price -- buyers respond well to "free shipping," and it won't change the fees you pay anyway.
- Turn off Offsite Ads if under $10K -- it's a simple switch in Shop Manager under Marketing.
- Drive repeat customers to your own site -- selling directly with Stripe (2.9% + $0.30) is far cheaper than Etsy's roughly 13%.
Etsy vs Other Platforms
Etsy's overall fees (around 13%) are higher than selling independently with Stripe (2.9% + $0.30) or PayPal (3.49% + $0.49). However, Etsy provides immediate access to a large customer base. eBay's fees (13.25% + $0.30) are comparable to Etsy's. Amazon FBA fees depend on the product, usually falling between 15-20% plus fulfillment costs. Check our full comparison for more details.