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What are Etsy seller fees, listing fees and transaction feeds

Understanding Etsy Fees

I have talked to so many people who have had a shop for months (or longer) and have no idea what Etsy is charging them! People who post on Facebook ranting against Etsy for overcharging them, when the charges are correct. People who don’t understand why they aren’t making the profit they expected. If you haven’t taken time to sit down and understand how Etsy is charging you, now is the time! Don’t have a shop yet? This post will get you started off on the right foot, because if you know your numbers then you’ll know your profit!

First fees first. Let’s talk listing fees. This one is the easiest to calculate, but can throw people off every once in a while. Etsy charges you 20 cents to list an item. I think this is one of the best parts of Etsy! You can start with such a small budget!

What I see confusing people sometimes, is when you get a sale that involves multiples of the same listing. If someone buys two of the same item by selecting two for the quantity, Etsy is going to charge you the listing fee for each item. You can save extra fees by listing sets of items. I sell shampoo and conditioner bottles. I have them listed in sets of 2, 3, 4, and 5 because most people want to buy more than one. So instead of being charged $1 every time someone buys a set of 5 individual listings, I’m only charged $0.20 because they bought one listing for the set instead of selecting 5 on a listing of one bottle.

You are also charged the listing fee on private listings (like when you make someone a custom order), but only once it sells.

The listing fees keep the item listed on Etsy for 4 months or until it sells. If you have automatic renewals turned on, you will be charged for another 4 months once the item expires.

The second type of fee on Etsy is a transaction fee. This is 5% of the total purchase. Yes this includes shipping. Now…before you go on a rant about Etsy changing this fee to include shipping let me stop you right there. Even after Etsy increased this fee in 2018, it is still one of the cheapest platform to sell on with a huge customer base and most other platforms charge their fees on the shipping price as well.

The last fee that Etsy charges you every time you make a sale, is the payment processing fee. These fees actually change depending on what country you live in. Etsy charges US sellers 3% plus $0.25. Click here to see what they charge in other countries.

Here’s a list of optional fees on Etsy:

– Subscription Fees for Etsy Plus

– Pattern Fees for a stand alone site. (I actually don’t recommend using pattern for a few different reasons that I’ll get into later)

– Promoted Listings. This can be a great tool, but I recommend waiting to start promoted listings until you know what your best sellers are.

That’s the list! While it’s not complicated once you read through it, it’s still very important to know what Etsy is charging you. You’ll want to take all of these fees into account in order to price your items properly. If you want some help with this, make sure to sign up and download my Etsy Profit Calculator. Click here to sign up!

Make sure to leave any questions you have in the comments! Thanks for reading. Don’t forget to sign up for my email list for weekly blog updates and tips for starting and running your shop.

-Sarah

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