Etsy is one of the most straightforward ways to sell things you make: you don’t need your own website, and buyers are already there looking. But a sale price isn’t what lands in your account. Before you set prices, it helps to know exactly where the money goes.
The fees on a typical sale
For US sellers, an ordinary Etsy sale carries three fees:
| Fee | What it costs | When it’s charged |
|---|---|---|
| Listing fee | $0.20 per listing | When you list, and again when it sells or auto-renews (listings last four months) |
| Transaction fee | 6.5% | On the item price plus what the buyer pays for shipping and gift wrap |
| Payment processing | 3% + $0.25 | On the order total, when the buyer pays through Etsy Payments |
There’s no monthly charge to have a shop. Etsy Plus is an optional paid subscription with extra tools; you don’t need it to sell.
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A worked example
Say you sell a hand-stamped bookmark set for $30, and the buyer pays $5 for shipping. The order total is $35 (we’ll leave sales tax out to keep it simple).
- Listing fee: $0.20
- Transaction fee: 6.5% of $35 = $2.28
- Payment processing: 3% of $35 + $0.25 = $1.30
That’s $3.78 in Etsy fees, about 10.8% of what the buyer paid. You receive $31.22, and you still have to pay for postage, packaging and materials out of that.
Offsite Ads can change the picture
Etsy advertises listings on other sites, such as search engines and social media. If a buyer clicks one of those ads and buys within 30 days, Etsy charges an Offsite Ads fee on that order: 15% for most shops, or 12% for shops that have made over $10,000 in the last 12 months. Shops under $10,000 can opt out; above $10,000, participation is required.
On our $35 order, a 15% Offsite Ads fee would add $5.25, taking total fees to $9.03, about 26% of the order. It only applies to sales Etsy attributes to its ads, but it’s worth knowing when you set prices.
A pricing formula that pays you for your time
A common mistake is pricing at “materials plus a bit”. Try this instead:
- Materials and packaging per item. Every bag, label and envelope counts.
- Your time. Decide what an hour of your time is worth, then multiply by how long one item really takes, including photos and listing.
- Fees. Budget around 11% of the order total, or more if you expect Offsite Ads sales.
- Shipping. Use the actual postage cost, not a guess.
Add 1, 2 and 4, then divide by about 0.89 to leave room for the fees. If the result is far above what similar items sell for, the honest answer may be to make the item faster, buy materials in bulk, or choose a different product, not to work for free.
Build something Etsy can’t take away
Etsy’s buyers are Etsy’s customers first: the platform sets the fees, the search ranking and the rules for contacting buyers. That’s a fine deal while it lasts, but many makers also build an audience of their own:
- An email list. Invite buyers to join it: a card in the parcel with a link or QR code to your signup page works well. Etsy’s rules don’t let you add buyers to a marketing list without their consent, so ask; don’t add.
- Social profiles that show the making, not just the finished product. Process photos and short videos give people a reason to follow.
- In time, your own shop for repeat customers. A sale through your own site carries no Etsy fees at all.
When a new collection launches, a list of people who already like your work is the difference between a quiet week and a sell-out. More in why the money is in the list.
Before your first sale
- Keep records of every sale, fee and supply purchase. Etsy’s fees are a business expense.
- Know the tax rules. Selling for a profit is taxable income whether or not you receive a tax form. (See our guide to side-income taxes.)
- Read the current fee policy for your country before you set prices. Fees change.
Fees shown are for US sellers selling in US dollars, checked in November 2026. Etsy changes its fees from time to time and they differ by country; the Fees & Payments Policy linked below is the source of truth.
Sources
- Etsy: Fees & Payments Policy: the official schedule, including Offsite Ads; check it for your country
- Etsy: Seller Policy: including the rules on contacting buyers and mailing lists
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