What are the costs associated with selling on Etsy?

Written by

Sabrina Barnes

Etsy is a global marketplace that attracts millions of customers and provides sellers with a hassle-free experience. While Etsy doesn’t have any recurring subscription fees, it’s important to be mindful of other fees associated with selling on this platform. Understanding these fees ensures that you can maintain the exact profit margin you’ve set for your products.

When selling on Etsy, the following fees will apply:

Listing fee (USD 0.20)
Transaction fee (6.5%)
Payment processing fee (3% + USD 0.25)

To simplify the process of incorporating these costs into your product pricing, we’ve introduced a separate column in the pricing table: Etsy fee. This column reflects the total sum of the associated Etsy selling fees, calculated based on your selected retail price.

Note

Etsy calculates the fees based on the total retail price of items plus shipping cost. However, since accurately predicting shipping costs for each customer’s location isn’t possible, these costs are not included in the amount displayed under Etsy fee.

The amount displayed in this column will be automatically added to the suggested retail price of the product in Printify:

Retail price: This is what your customers will pay for the product in your store.
Production cost: This is the amount charged by Printify for printing the product.
Etsy fee: Since this fee is based on the retail price, it changes depending on the price you set for the product.
Profit: This is the money you’ll earn after deducting the production cost and Etsy fee from the retail price.
Profit margin: This is the percentage of the retail price that represents your profit. By default, it’s set at 40% but can be adjusted.

Tip

If production costs differ between variants, use our Profit Calculator to accurately calculate pricing for each product variant. It breaks down all associated costs, including sales channel fees and shipping costs if they’re included in the price.

For example, if the total retail price of your product is 100%, 50% of that goes to the production cost, 40% to the profit margin, and roughly 10% to the Etsy fee. Note that the Etsy fee, which is approximately 10% of the retail price at minimum, caps the potential profit margin at a maximum of around 90%.

Note

If you enable free shipping and/or Etsy off-site ads, those costs will be factored into the current retail price. This can lower your profit margin. If you want to increase your profit or profit margin, you’ll need to raise the retail price accordingly.

Etsy off-site ads

Etsy’s Offsite Ads program showcases a variety of Etsy products on external websites, including search engine results, social media platforms, Etsy Publishing Partner sites, and more.

This service from Etsy incurs no initial fees for sellers; they are only charged an advertising fee when a sale is completed. If an order can be traced back to an off-site ad, Etsy will charge a fee of either 15% or 12% of the sale price.
If you frequently receive orders through this program, it can be a good idea to incorporate this fee into your product’s retail price to maintain your profit margins.
All Etsy sellers are automatically enrolled in the Offsite Ads program and may face associated fees upon making a sale. You may have the option to opt out if you prefer not to participate.

If you’d like to include the fee for Etsy’s off-site ads in your product pricing, simply toggle the switch and select the appropriate percentage:

Sellers with annual revenue below USD 10,000 will incur a 15% charge per order.
Those earning USD 10,000 or more will be charged 12% per order.

Note

The profit margin does not automatically return to its previous value once off-site ads are enabled. You may need to manually readjust it as necessary.