How Much Does It Cost to Sell оn Etsy?

Etsy is a popular site where creative entrepreneurs can market and sell their goods to millions of people around the globe. But the big question is, how much does it cost to sell on Etsy and is it worth using the platform?

To assist you, we’ve provided valuable information on Etsy’s commission rates. Keep reading to find out more.

Does Etsy Take a Cut?

Etsy has over 97 million active users worldwide, so it’s the perfect marketplace for entrepreneurs selling handcrafted or vintage goods. However, there are mandatory Etsy fees for sellers that might make you wonder if it’s worth selling goods through the site.

Here’s a brief breakdown of Etsy fees:

  • Per listing fees
  • Transaction fees
  • Auto-renewal fees
  • Etsy Ad fees
  • Offsite Ad fees
  • In-person selling fees
  • Payment processing fees
  • Digital VAT fees

How Do Etsy Fees Work?

How Etsy seller fees work will depend on the type of fee you’re paying. For example, your Etsy listing fee will be charged at the time of publishing or renewing a public listing. Once a product sells, there will be an immediate transaction fee which includes shipping and taxes.

To automate your payments, you can access your Payment Account, which itemizes all your fees in one place. An Etsy Payment Account includes all fees and costs for selling on the platform. Any fees due on your Etsy account will be deducted automatically on the day they’re incurred. You simply have to make sure that there’s enough money in your Payment Account to cover all your Etsy shop fees.

On the other hand, you are only eligible for a Payment Account if you are a seller and you have a valid debit or credit card on Etsy. It’s worth getting an account because it will simplify the payment process for you and your buyers.

What Percentage Does Etsy Take?

The percentage Etsy takes will depend on the type of fee. Check out the table below:

Type Percentage
Etsy transaction fees 6.5% of the price you display for each listing
Attributed Orders 15% if If your shop has made less than $10,000 in sales over the last 365 days
Currency conversion fee 2.5% on the sale amount to send funds to your payment account
Etsy’s shipping transaction fee 5% of the total cost your customers pay for shipping
Payment processing fees 3%

Note that Etsy’s payment processing fee will vary depending on the country you reside in. Additionally, sellers who live outside the US will be subjected to regulatory operation fees of between 0.25% and 1.1%.

How Much does Etsy Charge Per Sale?

You’ll be charged various fees per sale on your Etsy store. You’ll pay transaction fees every time someone buys a product. Etsy also collects $0.25 plus a 3% payment processing fee for each item sold.

Furthermore, Etsy will collect the applicable sales tax amount from you and pay it to the relevant tax authority. Value-added tax (VAT) will also be collected and paid to the relevant authorities, so you don’t have to take any further action.

How Much Does It Cost to List on Etsy?

There are Etsy listing fees that you’ll have to pay. For each listing on the platform, you’ll be charged $0.20 when items are published. This cost will only be charged for new items or when you renew an existing listing on the platform. There will be no fees when editing your listing.

Your listing fee will be charged whether or not you make a sale. The listing price expires after four months, but Pattern-only listings don’t expire. For multiple listings of the same product, the initial fee will be $0.20, and the listing will renew automatically after each item sells.

Does Etsy Charge a Monthly Fee?

Etsy doesn’t charge monthly fees to standard users. However, if you have an Etsy Plus subscription, you’ll be charged $10 every month until you cancel your subscription. This fee is deducted from your current balance and will reflect in your Payment Account.

With Etsy Plus, you get additional perks such as:

  • The ability to accept restock requests from your shop
  • Etsy Shop customization
  • 15 listing credits for each subscription cycle
  • $5 in Etsy Ad credits with every subscription cycle
  • Discounts on business cards, web domain, and custom shipping boxes

You can also sign up for Etsy Pattern which will cost you $15 a month. Pattern is an easy way to create a website for your Etsy shop. It helps build brand awareness so you can boost your sales and income.

Is It Worth It to Sell on Etsy?

Although there are many fees involved when you sign up for an Etsy account, it’s worth selling your products through the platform. Etsy is more affordable than other website builders to sell products through. Additionally, it’s a low-risk option because your shop is protected by extensive security. You can even customize your security options through the platform.

With that being said, many sellers wonder how much money they can make on Etsy. Well, if you’re savvy with your marketing and create proper listings, you could make between $43,000 and $46,000 per year on Etsy. This is more than enough to cover all the costs on your account.

Final Thoughts

Etsy doesn’t have any hidden fees. The platform is extremely transparent with all its costs. Yet, there are many variables – the item’s price, your country of residence, and the options and subscriptions you use.

To keep your Etsy business running smoothly, make sure you get familiar with the company’s Fees and Payments Policy we’ve discussed above. And for more precise calculations, you can use one of the free tools available online. Simply input the item’s selling and cost prices, shipping charge, and payment method to get a rough estimate of the fees and the profit you’re set to generate. Also, remember to keep an eye on any Etsy pricing updates.

At the end of the day, art and craft may not be about numbers, but business is.

FAQ

Do you have to pay to have an Etsy shop?

It’s free to sign up for Etsy and create a shop. However, you will be charged fees on listings, and once you start making sales, you’ll be charged transaction and payment processing fees. You can manage your fees through your Etsy Payment Account.

Is it free to sell on Etsy?

No, it’s not free to sell on Etsy. You are charged per listing, and you’ll pay for any taxes, processing fees and transactions. If you’re selling products outside of the US, you’ll also be charged regulatory operating fees over and above your initial Etsy fees. Refer to our How much does it cost to sell on Etsy guide for more details.

ABOUT AUTHOR

Proudly South African, I have a history in psychology, as well as administration, but writing is my first love. I’ve been a full-time copywriter for four years and create SEO-friendly blogs, case studies, web content, landing pages, reviews, whitepapers, and more. Other than that, I enjoy helping people discover their potential through coaching, taking care of my two darling dogs, and saving the world one charity project at a time.

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