Key Takeaways
- Etsy takes approximately 9.5% + $0.45 minimum on each sale
- With Offsite Ads, total fees can reach 21-24% of sale price
- Listing fee of $0.20 applies regardless of whether item sells
- Once you earn $10,000+/year, Offsite Ads become mandatory
- Target at least 30% profit margin to account for all fees
Understanding Etsy Fees in 2025
Etsy fees can significantly impact your profit margins if you don't understand them fully. As an Etsy seller, you'll encounter several types of fees that are charged at different stages of the selling process. This guide breaks down each fee so you can price your products profitably.
Listing Fee - $0.20
Every time you list an item on Etsy, you pay a $0.20 listing fee. This fee is charged regardless of whether the item sells. A listing remains active for 4 months, after which Etsy automatically renews it (and charges another $0.20) unless you disable auto-renewal.
For multi-quantity listings, you pay $0.20 for each item sold. If you list 10 of the same item and sell 3, you'll pay $0.60 in listing fees ($0.20 x 3).
Transaction Fee - 6.5%
When an item sells, Etsy charges a 6.5% transaction fee on the total order amount. This includes:
- The item price
- Shipping costs charged to the buyer
- Gift wrap fees (if applicable)
For US sellers, the transaction fee does not apply to sales tax. For sellers outside the US, the fee applies to the listing price including any taxes you're responsible for collecting.
Payment Processing Fee - 3% + $0.25
If you accept payments through Etsy Payments (required in most countries), Etsy charges a payment processing fee. In the US, this is 3% + $0.25 per transaction. Rates vary by country:
| Country | Percentage | Fixed Fee |
|---|---|---|
| United States | 3% | $0.25 |
| United Kingdom | 4% | 0.20 GBP |
| Canada | 3% | $0.25 CAD |
| Australia | 3% | $0.25 AUD |
| Germany | 4% | 0.30 EUR |
| France | 4% | 0.25 EUR |
Offsite Ads Fee - 12% or 15%
Etsy advertises your listings on Google, Facebook, Instagram, and Pinterest. If someone clicks an ad and purchases within 30 days, you're charged an Offsite Ads fee:
- 15% - Shops with less than $10,000 annual revenue (can opt out)
- 12% - Shops with $10,000+ annual revenue (mandatory, cannot opt out)
Pro Tip: Factor in Offsite Ads
Even if you're a small seller who has opted out of Offsite Ads, you may be automatically enrolled as you grow. Price your products assuming the 12-15% fee to avoid surprises when you cross the $10,000 threshold.
How Much Does Etsy Really Take?
Let's calculate the total fees on a typical $25 sale with $5 shipping:
| Fee Type | Calculation | Amount |
|---|---|---|
| Listing Fee | Flat rate | $0.20 |
| Transaction Fee | 6.5% of $30 | $1.95 |
| Payment Processing | 3% of $30 + $0.25 | $1.15 |
| Minimum Total | $3.30 (11%) | |
| With Offsite Ads (15%) | 15% of $30 | $4.50 |
| Maximum Total | $7.80 (26%) |
Frequently Asked Questions
Aim for at least a 30-40% profit margin after all Etsy fees and costs. This provides a buffer for Offsite Ads, returns, and market fluctuations. Many successful Etsy sellers target 50%+ margins on handmade items.
If your shop earns less than $10,000 in the past 365 days, you can opt out in Shop Manager > Marketing > Offsite Ads. Once you exceed $10,000 in sales, enrollment becomes permanent and mandatory.
Yes, the $0.20 listing fee is charged when you create or renew a listing, regardless of whether it sells. Listings auto-renew every 4 months unless you disable this feature. You also pay $0.20 each time a multi-quantity item sells.
Etsy gives search priority to listings with free shipping on orders $35+. However, you'll pay the 6.5% transaction fee on a higher item price. Mathematically, the fees are similar - choose based on your customer preferences and conversion rates.
Break-even = (Product Cost + Shipping Cost + $0.45) / (1 - 0.095 - Offsite Ads %). For a $10 product with $4 shipping and no Offsite Ads: ($10 + $4 + $0.45) / 0.905 = $15.97 minimum. Add your desired profit margin on top.