Etsy charges multiple fees on every sale: a transaction fee, payment processing fee, and listing fee. Understanding the combined impact of these fees is essential for pricing your products and calculating actual profit.
Here’s exactly what Etsy takes per sale in 2026, how fees stack up, and what you keep after all deductions.
Etsy’s Fee Structure: Three Core Charges
Every sale on Etsy incurs three mandatory fees:
- Listing fee — $0.20 per item listed (valid for 4 months or until sold)
- Transaction fee — 6.5% of the total sale price including shipping
- Payment processing fee — 3% + $0.25 per order
All three fees are deducted automatically. You receive the net amount after fees directly to your bank account or Etsy Payments balance.
Transaction Fee: 6.5% of Total Sale Amount
The transaction fee applies to the total amount the buyer pays, which includes:
- Item price
- Shipping cost charged to buyer
- Gift wrapping or personalization fees (if applicable)
The fee does not include sales tax, which is passed through to tax authorities and not counted as seller income.
Example breakdown for a $30 item with $5 shipping:
- Total sale amount (item + shipping): $35
- Transaction fee (6.5% of $35): $2.28
If you offer free shipping by absorbing the cost in your item price, the transaction fee still applies to the full listed price.
Payment Processing Fee: 3% + $0.25 Per Order
Etsy Payments (the mandatory payment processor for most sellers) charges a separate fee for handling credit card and digital wallet transactions:
- 3% of the total order value (item + shipping + tax)
- Plus a flat $0.25 per order
This fee applies to the total checkout amount including sales tax, unlike the transaction fee which excludes tax.
Continuing the example above (buyer pays $35 + $3 sales tax = $38 total):
- Payment processing fee: (3% of $38) + $0.25 = $1.14 + $0.25 = $1.39
Payment processing fees vary slightly by country. US sellers pay 3% + $0.25. UK sellers pay 4% + £0.20. EU sellers pay 4% + €0.25. Check Etsy’s fee page for your specific region.
Listing Fee: $0.20 Per Item
Every listing on Etsy costs $0.20 when published. The listing remains active for four months or until the item sells, whichever comes first.
Key points:
- Fee is charged upfront when you create the listing, not when it sells
- If the item sells, the listing expires and you must pay $0.20 again to relist (unless using auto-renew)
- If the item doesn’t sell within four months, the listing expires and you must pay $0.20 to renew it
- Multi-quantity listings (listing one item with quantity 10) only cost $0.20 total, not per unit
Sellers with high turnover can incur substantial listing fees. If you sell 100 items per month and relist immediately, that’s $20 in listing fees monthly.
Complete Example: What You Keep on a $30 Sale
Item price: $30
Shipping charged to buyer: $5
Sales tax (collected for tax authority): $3
Buyer pays total: $38
Fees deducted:
- Listing fee (paid when listing created): $0.20
- Transaction fee (6.5% of $35): $2.28
- Payment processing fee (3% of $38 + $0.25): $1.39
- Total fees: $3.87
You receive: $35 – $3.87 = $31.13
Effective fee rate: 11% of the sale amount (excluding sales tax, which is remitted to tax authorities).
Additional Fees and Optional Services
Beyond the core three fees, Etsy offers optional paid services:
- Etsy Plus subscription — $10/month for advanced customization tools, restock requests, and discounted Etsy Ads credits
- Etsy Ads (Offsite Ads are separate) — Pay-per-click advertising within Etsy search. You set daily budget, costs vary by keyword competition
- Offsite Ads (mandatory for sellers over $10,000/year revenue) — Etsy advertises your listings on Google, Facebook, Instagram. If a sale comes from an Offsite Ad, Etsy charges an additional 12% fee (15% for sellers under $10,000 annual revenue)
- Pattern by Etsy — $15/month for a standalone website using your Etsy inventory
- Shipping label discounts — Etsy offers discounted USPS, FedEx, and other carrier rates if you purchase labels through the platform. Discount varies by service level
Offsite Ads is the most controversial. Sellers earning over $10,000/year cannot opt out. A $100 sale from an Offsite Ad incurs the standard fees plus an additional $12, bringing total fees to approximately $20+ on that transaction.
Currency Conversion Fees
If you sell internationally and the buyer pays in a currency different from your shop’s currency, Etsy charges a 2.5% currency conversion fee on top of the payment processing fee.
Example: A US seller receives a €50 payment from a buyer in Germany. Etsy converts €50 to USD and deducts 2.5% for the conversion, in addition to the standard 3% + $0.25 payment processing fee.
VAT on Etsy Fees (EU and UK Sellers)
Etsy charges VAT on fees for sellers in the EU and UK. This means:
- UK sellers pay 20% VAT on transaction fees and payment processing fees
- EU sellers pay their local VAT rate (typically 19%–25%) on Etsy’s fees
Example: A UK seller’s $2.28 transaction fee becomes $2.74 after 20% VAT. This VAT is not refundable to the seller but can be reclaimed if the seller is VAT-registered and files VAT returns.
How Etsy Fees Compare to Other Platforms
For a $30 handmade item with $5 shipping:
- Etsy — Total fees: $3.87 (11%). You keep $31.13
- eBay UK — Total fees: $4.48 + $0.30 (12.8% + flat fee). You keep $30.22
- Amazon Handmade — Referral fee: 15% of $35 = $5.25. You keep $29.75
- Shopify — No listing/transaction fees, but monthly subscription ($39–$399) + payment processing (2.9% + $0.30). You keep $33.65 minus monthly fee
Etsy is cheaper than Amazon Handmade but more expensive than running your own Shopify store if you have sufficient volume to offset the monthly subscription.
When Etsy’s Fees Are Worth Paying
Etsy makes sense when:
- You’re selling handmade, vintage, or craft items that fit Etsy’s buyer demographic
- You benefit from Etsy’s built-in audience and don’t have an existing customer base
- Your profit margins are high enough to absorb 11%+ in fees
- You’re not yet ready to manage standalone e-commerce infrastructure
For low-margin items or high-volume sellers, Shopify or WooCommerce may offer better unit economics despite requiring more upfront setup.
Reducing Etsy Fees: Practical Strategies
You cannot avoid Etsy’s core fees, but you can minimize their impact:
- Price items to account for fees—build the ~11% cost into your retail price
- Use multi-quantity listings to pay $0.20 once instead of per unit
- Offer combined shipping to reduce per-transaction payment processing fees
- Stay under $10,000 annual revenue if possible to avoid mandatory Offsite Ads
- If VAT-registered, reclaim VAT charged on Etsy fees through your VAT return
Summary
Etsy charges 6.5% transaction fee, 3% + $0.25 payment processing fee, and $0.20 per listing. On a $30 sale with $5 shipping, total fees are approximately $3.87 (11%). Offsite Ads adds 12%–15% if applicable. Etsy’s fees are competitive for handmade and vintage sellers but higher than self-hosted platforms for volume sellers.
Factor fees into your pricing from the start. An item priced at $30 nets you around $31 after fees—ensure your cost of materials, labor, and shipping still leaves acceptable profit after that deduction.