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Etsy Seller Fees – The Complete Guide For 2024

January 16, 2024 by Alex Tooby
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Etsy Seller Fees - How much does it really cost to sell on Etsy?

I know you’ve heard, “Etsy seller fees are RIDICULOUS!!”

And you’re not wrong..

Etsy has a TON of different fees they charge sellers to use their platform, but it’s not all bad.. While Etsy seller fees can be considered ‘high’, they are easily offset by the amount of traffic (and ultimately, sales!) Etsy sends you on a daily basis.

Etsy has over 82 MILLION ready-to-buy users actively shopping the site. By listing your items on Etsy you’re setting yourself up for potentially infinite sales and the Etsy seller fees they charge reflect that massive opportunity.

However, just because you’re making sales doesn’t necessarily make the fees manageable. If you don’t have a large enough profit margin (sale price minus expenses) Etsy seller fees can leave you at a LOSS.

To avoid that, I’ve put together this comprehensive blog that outlines ALL of the Etsy Seller Fees you will encounter when selling on Etsy.

Let’s dive in, shall we?!

Etsy Seller Fee #1 – Processing Fee

One of the first fees you’ll encounter after starting your Etsy shop and generating a sale is the Processing Fee. The Processing Fee is exactly how it sounds – it’s the amount sellers are charged to process a sale.

The Processing Fee is a percentage of the order total (including shipping & taxes) and varies based on your location.

For example, Canadian and Australian sellers will incur a 3% + $0.25 processing fee on all orders shipped to a domestic location, but will be charged 4% + $0.25 if the order is shipped internationally.

Etsy Seller Fees - Processing Fee 3% + <img decoding=.25" class="wp-image-16513 webpexpress-processed" data-lazy-srcset="https://alextooby.com/wp-content/uploads/Etsy-Seller-Fees1.png 1108w, https://alextooby.com/wp-content/uploads/Etsy-Seller-Fees1-768x173.png 768w, https://alextooby.com/wp-content/uploads/Etsy-Seller-Fees1-24x5.png 24w, https://alextooby.com/wp-content/uploads/Etsy-Seller-Fees1-36x8.png 36w, https://alextooby.com/wp-content/uploads/Etsy-Seller-Fees1-48x11.png 48w" data-lazy-sizes="(max-width: 1108px) 100vw, 1108px" data-lazy-src="https://alextooby.com/wp-content/uploads/Etsy-Seller-Fees1.png">

*This is why it is so important to fully understand how Etsy fees work and change based on certain variables. A missed percent over a long term can really add up!

Sellers in the United States will incur a flat 3% + $0.25 regardless of shipping location. Sellers in the United Kingdom will incur a 4% + $0.20 fee and the list goes on.

To see the full list of processing fees dependant on location, click here.

Processing Fee Example:

Apex Botanicals sells a Rosemary Tincture for $40 + $19.50 shipping + $2.97 taxes for a total of $62.47. It’s being shipped domestically within Canada so is charged 3% + $0.25 for a total Processing Fee of: $2.12

*Fact: the highest processing fee is for sellers from Turkey at 6.5% + $3.00!

Etsy Seller Fee #2 – Transaction Fee

A Transaction Fee is what Etsy charges sellers to conduct business on their platform. As of 2024 it’s 6.5% (recently increased from 5% in April of 2022) on the order total, including shipping and taxes.

Etsy Seller Fees - Transaction Fee 6.5%

Unlike the Processing Fee, this amount is a flat 6.5% for all sellers no matter their location. 

Transaction Fee Example:

Apex Botanicals sells a Rosemary Tincture for $40 + $19.50 shipping + $2.97 taxes for a total of $62.47. Etsy charges 6.5% for a total Transaction Fee of: $4.06

Etsy Seller Fee #3 – Listing / Renewal Fee

In order to list an item on Etsy, you must pay a listing fee. This fee is a flat $0.20 USD per listing (converted into your local currency – so for me, a Canadian, it’s usually $0.27).

When you pay your $0.20 listing fee that allows your item to be publicly listed on Etsy for four months, or until it’s sold (whichever comes first).

Once an item is sold, or the four month time frame expires, a Renewal Fee of $0.20 is charged.

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For example, if on January 1st I list a new item, I will be immediately charged $0.20 USD. If I then sell that item on January 10th, I will be charged an additional $0.20 to re-list it.

If I chose not to pay that second $0.20 Renewal Fee then my item will no longer be visible on my shop. (Don’t worry, you can set the renewal to be automatic so anytime an item sells, you get charged the $0.20 and your items always remain available!)

Another scenario may look like this – I list an item on January 1st and am charged $0.20. Four months later on April 2nd, if that item still has not sold, I will be charged an additional $0.20 to renew it. If I chose to not pay for the renewal, the product will be hidden from my shop.

Listing Fee Example:

Apex Botanicals sells a Rosemary Tincture. They are charged $0.27 CAD for originally listing the product, and another $0.27 CAD to renew the listing after it sold. Making the total Listing / Renewal Fees for this sale: $0.54

*Current Fees: At this point in our example, the Transaction Fee, Processing Fee and Listing / Renewal Fee brings the total fees (for now) to: $6.72

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Etsy Seller Fee #4 – In-Person Selling Fee

If you are planning to participate in local in-person markets or craft fairs Etsy will actually give you a small break on your Etsy Seller Fees!

But, you need to take a few extra steps first to take advantage of the discount, AND ensure all in-person sales get properly attributed to your Etsy Shop.

Here’s what you’ll need to do:

  1. Create a Square Account
  2. Request a Free Square Reader
  3. Link your Square Account to your Etsy Account
  4. Download the Square POS App

From there you’ll be able to collect payment for your in-person sales, and Square and Etsy will work together to modify your inventory, track your orders and request reviews from your new customers.

The fees associated with in-person selling are:

  • $0.20 Renewal Fee
  • 2.6% + $0.10 Transaction Fee for sales processed by the Square Reader
  • 3.5% + $0.15 Transaction Fee for sales processed by manually entering card details

In-Person Selling Fee Example:

Apex Botanicals sells a Rosemary Tincture at a local craft market for $40 + $2 taxes using a Square Reader device. Etsy charges a $0.27 CAD listing Renewal Fee and Square charges a 2.6% + $0.10 Transaction Fee for a total of: $1.46

*Keep in mind – if you process in-person orders with cash you will only be charged the Etsy Renewal Fee!

Etsy Seller Fee #5 – Shipping Fee

Etsy makes selling extremely easy by offering everything you need in one place, including shipping labels!

You are not required to purchase shipping labels through Etsy (in fact – there are lots of ways to find cheaper shipping!) but if you would like to, you can, and the cost of such labels will be charged to your Etsy account as a ‘Shipping Fee’.

The cost of shipping will depend on the weight and size of your parcel, as well as its destination. You’ll also be able to add insurance, signature confirmation and other add-ons that will affect the final fee.

If you purchase a shipping label from somewhere other than Etsy you will not be charged a Shipping Fee.

Shipping Fee Example:

Apex Botanicals sells a 100ml Rosemary Tincture to a buyer in Alberta, Canada. The size of the box is 4.25” x 3.25” x 6” and weighs 200g. Etsy generates a shipping label for this order and it comes to a total of: $21.26

*Current Fees: At this point in our example, the Transaction Fee, Processing Fee, Listing / Renewal Fee and Shipping Fee brings the total fees (for now) to: $27.98

Etsy Seller Fee #6 – Currency Conversion Fee

Etsy uniquely allows you to sell in any currency you choose, regardless of your physical location and the location of your bank account.

For example, I’m in Canada but I can choose to sell my products in $USD if I think it may be beneficial to me (one reason being the Canadian dollar is weak AF!). In most cases, after exchanging USD funds into CAD I may come out ahead, BUT with Etsy you need to be careful!

If you choose to sell in a currency that differs from your depositing bank account you will be charged a 2.5% Currency Conversion Fee on every transaction! 

That 2.5% can really eat up any conversion benefit you thought you may have had, especially considering it is applied ONTOP of the other Etsy Seller Fees mentioned above!

Having said that, it is possible for me, as a Canadian, to have an USD bank account connected to Etsy. In this case, since I am accepting USD and depositing into a USD account there would be no Currency Conversion Fee. 

Currency Conversion Fee Example:

Apex Botanicals sells a Rosemary Tincture for $29.89 + $14.57 shipping + $2.22 taxes for a total of $46.68 USD. Etsy charges a 2.5% Currency Conversion Fee for a total of: $1.16 USD

This is something to consider thoroughly. Run the numbers – would selling in a different currency really benefit you? If not, stick with the currency of your depositing bank account.

*Remember: the price of your products will always display in the local currency of your customer when they are shopping your store so it is not necessary to change your store currency for the benefit of the customer.

Etsy Seller Fees

Etsy Seller Fee #7 – Regulatory Operating Fee

If you are located in the UK, France, Italy, Spain or Turkey you will incur an additional fee most other Etsy sellers do not. This fee is called a Regulatory Operating Fee and, according to Etsy is put in place “as a result of the increased cost of operating in the relevant country, for example, as a result of additional costs of compliance with applicable regulation(s).”

This fee is charged on the order total (including shipping & taxes) and ranges from 0.25% up to 1.1%.

To see the specific Regulatory Operating Fees per country, click here.

Etsy Seller Fee #8 – Offsite Ad Fee

OK kids, hold onto your hats ‘cause this is a hefty one…

Etsy Offsite Ads are probably one of the most controversial Etsy topics, with some sellers appreciating it and many others wondering WHY they are forced to participate in it.

Offsite ads are “involuntary ads” that Etsy runs on your behalf on high-traffic sites like Google, Instagram, Facebook, Pinterest, Bing and more. All sellers are automatically opted-in to this service when they start a shop and can only opt-out if they meet certain parameters (noted below).

When a customer clicks on an Offsite Etsy Ad and makes a purchase, Etsy charges a 12% or 15% Offsite Ad Fee on the order total (including shipping & taxes). 

Whether you get charged 12% or 15% is dependent on your total sales in the last 365 days. 

  • If you’ve sold less than $10,000 USD you will be charged 15%.
  • If you’ve sold more than $10,000 USD you will be charged 12%.

*To read more about the pros and cons of Etsy Offsite Ads, check out this blog: The Truth About Etsy Offsite Ads – Are They Really Worth It?

This, again, is why it’s soo extremely important to understand ALL the Etsy Seller Fees you may incur, as well as, how much it costs for you to make and ship your items. If you have a small profit margin and Etsy wants to take 15% + 6.5% plus plus plus, you may be left in the negative!

Offsite Ad Fee Example:

Apex Botanicals sells a Rosemary Tincture through an Offsite Ad for $40 + $19.50 shipping + $2.97 taxes for a total of $62.47. Since Apex Botanicals has generated over $10,000 in sales in the last year, Etsy charges a 12% Offsite Ad Fee of: $7.50

*Can I Opt Out of Offsite Ads? If your store has sold less than $10,000 USD in the last 365 days, you can opt out of Offsite Ads. If your store has sold more than $10,000 USD in the last 365 days you CANNOT opt-out.

Etsy Seller Fee #9 – Etsy Ads

Unlike Offsite Ads, Etsy Ads are voluntary and can be implemented by any seller at their own discretion.

Etsy Ads aren’t quite as complex as Facebook Ads which let you target certain audiences, interests or recent activities. Instead, Etsy Ads simply allow you to promote all or specific items from your store. 

You set a daily budget (minimum of $1 USD), select the items you’d like to promote and Etsy handles the rest.

The fees associated with Etsy Ads depend on what you set your daily budget to. For example, if you say you’d like to spend $5 a day on Etsy Ads, you’ll see a daily fee in your activity summary for $5 or less.

Etsy Seller Fees - Etsy Ads Daily Budget

Depending on how many clicks your ad gets, Etsy will spend all or less than your budget. That means some days it may only spend $3, instead of $5, but it will never spend more than your set daily budget.

Whether you make a sale or not, you will be charged Etsy Ad Fees. If you do make a sale, you’ll be charged the Etsy Ad Fee, plus all applicable fees mentioned above and below.

Etsy Seller Fee #10 – Taxes / VAT

Taxes are another big topic on Etsy and are applied to both your sales and your fees.

When you make a sale, Etsy collects tax from the seller on your behalf, then immediately takes it out of your account to remit to your local authorities. That means when you see an order of $100 with $5 in tax, you really only received $95. However – Etsy charges their fees on the $100 total.. (yep! 😤)

Outside of that, sellers are charged taxes on their Etsy Seller Fees.

After being charged your applicable processing, transaction, listing and ad fees, Etsy will then charge tax on top!

The specific tax rate charged will be based on your business location and in some cases whether or not you’re VAT/GST/HST or QST registered. To read Etsy’s full statement on the topic, click here.

Tax Fee Example:

Apex Botanicals has accrued fees of $6.72 on a recent order (Transaction Fee, Processing Fee, Listing / Renewal Fee). Based on Apex Botanical’s location, Etsy charges 5% GST and 7% PST on these fees for a total of: $0.81

*Current Fees: At this point in our example, the Transaction Fee, Processing Fee, Listing / Renewal Fee, Shipping Fee and Taxes brings the total fees to: $28.79

Summary & Total Etsy Fee Calculation

Throughout this article I used the example of Apex Botanicals selling a Rosemary Tincture for $62.47 (including shipping and taxes). Considering all the possible fees and cost to ship, were they profitable? Let’s find out!

Scenario 1 (Sale generated organically via Etsy)
$62.47 (Order Total) – $2.97 (Taxes) – $7.53 (Fees) – $21.26 (Shipping) = $30.71 (Profit)

Scenario 2 (Sale generated via Offsite Ads)
$62.47 (Order Total) – $2.97 (Taxes) – $15.93 (Fees) – $21.26 (Shipping) = $22.31 (Profit)

*Note: the ‘profit’ represents the money left over BEFORE considering the cost to make the product or any other fees such as staff, rental space, etc..

As you can see there are a lot of fees associated with selling on Etsy and they can really add up fast! Having said that, you need to keep in mind that Etsy is giving you the opportunity to promote your items in front of MILLIONS of ready-to-buy customers so of course there is a fee associated with that.

Before diving head-first into selling on Etsy I highly recommend figuring out how much it costs you to produce and ship your items. When you are confident in these numbers you can calculate your potential Etsy Seller Fees using the information in this article and determine if selling on Etsy would be profitable for you, or not.

To learn how to calculate your costs and my top strategies for selling on Etsy, join my FREE 5 Day Etsy Challenge!

How to Sell on Etsy - Free PDF

Unlock your shop's potential with my

FREE 5-DAY ETSY™ CHALLENGE!

Proven strategies to optimize your shop, increase profits and boost sales in just 5 days!

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How to Sell on Etsy - Free PDF

Unlock your shop's potential with my

FREE 5-DAY ETSY™ CHALLENGE!

Proven strategies to optimize your shop, increase profits, and boost sales in just 5 days!