If you're selling on Etsy (or thinking about starting), understanding the fee structure is critical to running a profitable business. Etsy's fees have evolved significantly over the years, and as of 2024-2025, sellers face multiple fee types that can add up to 15-25% of each sale. This comprehensive guide breaks down every Etsy fee, explains when they apply, and helps you calculate your true costs.
Quick Summary: Total Etsy Fees
- Minimum fees (under $10K/year): ~9.5-11% of sale price
- With mandatory offsite ads ($10K+/year): ~20-25% when ads trigger
- Fixed costs: $0.20 listing fee + $0.25 payment processing per sale
1. Listing Fee: $0.20 Per Listing
Every time you create a new listing on Etsy, you pay a flat $0.20 listing fee. This fee is charged immediately when the listing is published, regardless of whether the item sells.
When You're Charged:
- Creating a new listing: $0.20
- Listing expires and auto-renews: $0.20 (every 4 months)
- Item sells and relists: $0.20 (to replenish inventory)
- Multi-quantity sale: $0.20 per transaction (not per item quantity)
Key Points:
- Listings expire after 4 months if they don't sell
- Auto-renew is enabled by default - turn it off to avoid fees on slow-moving items
- Variations within a listing don't incur additional fees
- Private listings still cost $0.20
2. Transaction Fee: 6.5% of Total Sale
Etsy's main revenue comes from the 6.5% transaction fee. This is charged on the total sale amount, which includes both the item price AND any shipping charges you collect from the buyer.
What It Applies To:
- Item sale price
- Shipping charges (even if you use calculated shipping)
- Gift wrap fees (if offered)
- Any other charges to the buyer
Example Calculation:
Item Price: $40.00
Shipping: $6.00
Total: $46.00
Transaction Fee: $46.00 × 6.5% = $2.99
Note: This 6.5% is higher than many competitors. Amazon Handmade charges 15% but has no other transaction fees, while Shopify charges 0% (you only pay payment processing).
3. Payment Processing Fee: 3% + $0.25
When buyers pay through Etsy Payments (which handles credit cards, PayPal, Apple Pay, etc.), Etsy charges a 3% + $0.25 payment processing fee. This is similar to what PayPal or Stripe would charge.
Key Details:
- Etsy Payments is mandatory for sellers in most countries
- The 3% applies to the total sale (item + shipping)
- The $0.25 is charged per transaction, not per item
- Refunds don't return the payment processing fee
Example:
Total Sale: $46.00
Payment Processing: ($46.00 × 3%) + $0.25 = $1.63
4. Offsite Ads Fee: 12-15% (The Big One)
This is the fee that catches many sellers by surprise. Etsy runs ads for your products on Google, Facebook, Instagram, and other platforms. When those ads result in a sale, you pay an Offsite Ads fee.
Critical: Mandatory at $10K+
- Under $10,000/year: Optional, 15% fee when ads result in sale
- $10,000+/year: MANDATORY, 12% fee - you cannot opt out
- The threshold is based on your trailing 12-month sales
- Fee is charged on the item price only (not shipping)
How It Works:
- Etsy shows ads for your products on external platforms
- Someone clicks the ad and visits your listing
- If they purchase within 30 days, you pay the offsite ads fee
- You have no control over which items are advertised
Example Impact:
$40 item sale from offsite ad (at $10K+ threshold)
Offsite Ads Fee: $40.00 × 12% = $4.80
This is ON TOP of all other fees, potentially bringing total fees to 20%+
5. Currency Conversion Fee: 2.5%
When a buyer pays in a different currency than your shop's currency, Etsy charges a 2.5% currency conversion fee. This applies to international sales where currency conversion is needed.
For US sellers receiving payments in USD, this fee typically doesn't apply. But for international sellers or when dealing with cross-border transactions, it adds up.
6. Regulatory Operating Fee
Some regions have regulatory operating fees that Etsy passes on to sellers:
- UK sellers: 0.4%
- Some EU countries: Varies by country
- US sellers: Generally none
These fees cover Etsy's compliance costs with local regulations. Check Etsy's current fee schedule for your specific country.
7. Etsy Plus Subscription: $10/month
Etsy Plus is an optional subscription that offers:
- 15 listing credits ($3 value)
- $5 Etsy Ads credit
- Advanced shop customization options
- Discounts on custom domains, packaging, and business cards
- Restock requests feature
Verdict: Not essential for new sellers. The credits don't fully offset the cost, and the features are nice-to-have rather than must-have. Consider it once you're making consistent sales.
8. Etsy Ads (Optional)
Unlike Offsite Ads (which are mandatory at $10K+), Etsy Ads are completely optional. These are ads shown within Etsy search results.
- You set a daily budget (minimum $1/day)
- You're charged per click (CPC model)
- Average CPC ranges from $0.20-$1.00+ depending on category
- You can pause anytime
Use our Etsy Ads ROI Calculator to determine if ads are profitable for your products.
9. Real-World Fee Examples
Example 1: Small Seller (Under $10K/year)
$35 item + $5 shipping = $40 total
| Listing Fee | $0.20 |
| Transaction Fee (6.5%) | $2.60 |
| Payment Processing | $1.45 |
| Total Fees | $4.25 (10.6%) |
You keep: $35.75
Example 2: Same Sale WITH Offsite Ad (at $10K+ threshold)
$35 item + $5 shipping = $40 total
| Listing Fee | $0.20 |
| Transaction Fee (6.5%) | $2.60 |
| Payment Processing | $1.45 |
| Offsite Ads (12%) | $4.20 |
| Total Fees | $8.45 (21.1%) |
You keep: $31.55 (vs $35.75 without offsite ads)
10. Tips to Minimize Etsy Fees
1. Use Multi-Quantity Listings
Instead of creating separate listings for identical items, use multi-quantity listings. You pay $0.20 once instead of per listing.
2. Consolidate with Variations
Use variations (size, color, style) within one listing instead of separate listings. One listing with 10 variations costs $0.20 total.
3. Turn Off Auto-Renew for Slow Items
If a listing hasn't sold in multiple cycles, consider turning off auto-renew. Review and decide manually whether to renew.
4. Price for Fees
Build fees into your prices. If you want $30 profit, don't price at $30 - price at $35+ to cover fees. Use our Profit Calculator.
5. Consider Higher Price Points
Fixed fees ($0.20 listing, $0.25 processing) hurt more on low-priced items. A $10 item loses ~5% to fixed fees; a $50 item loses ~1%.
6. Opt Out of Offsite Ads (If Eligible)
If you're under $10K/year, you can opt out of Offsite Ads in your shop settings. Weigh the potential traffic benefit vs. the 15% fee.
Calculate Your Etsy Fees
Use our free calculators to see exactly what you'll pay and keep from each sale.
Complete Etsy Fee Breakdown (2025)
| Fee Type | Amount/Rate | When Applied |
|---|---|---|
| Listing Fee | $0.20 | Per listing, expires/renews every 4 months Also charged when an item sells (auto-relists) |
| Transaction Fee | 6.5% | On total sale price (item + shipping) Etsy's main revenue source |
| Payment Processing | 3% + $0.25 | Per transaction via Etsy Payments Required for most sellers |
| Offsite Ads FeeMANDATORY AT $10K+ | 12-15% | Only when ads result in sale MANDATORY at $10K+ annual sales (12%); Optional under $10K (15%) |
| Currency Conversion | 2.5% | International sales only When buyer pays in different currency |