Running an Etsy shop comes with costs—and if you don’t account for them, you’re cutting into your own profits. Etsy fees in 2025 are still competitive compared to other platforms, but they can add up fast if you’re not pricing your products properly.
Here’s exactly what to expect so you can set prices that actually make you money.
Understanding Etsy Fees in 2025
Before you set your prices, you need to understand the fees Etsy takes because they directly affect your profit margins.
Etsy fees are non-negotiable. They can feel frustrating at first, but they’re the price of access to Etsy’s massive audience and trusted platform. The key is to factor them into your pricing so you’re still making money after all costs.
If you’re new to selling, expect fees to feel a little overwhelming at first. They add up faster than you think. But don’t let that scare you off—Etsy remains one of the most affordable places to sell handmade, vintage, and craft supplies, with millions of active buyers every month.
Here’s a clear breakdown of the Etsy fees every seller needs to know for 2025:
Etsy Listing Fees: $0.20 Per Item
Etsy charges $0.20 each time you publish a product listing.
That fee applies whether it sells or not, and the listing stays live for 4 months. If it doesn’t sell in that time, you’ll pay another $0.20 to renew it.
If you sell a single listing with multiple quantities, you’ll pay another $0.20 for each additional unit sold beyond the first.
For Example: You list 5 mugs—the first sale already covered the listing fee, but each of the next 4 sales incurs another $0.20 each.
For private listings (made for one customer), you’re charged the $0.20 fee when they actually purchase.
Etsy Transaction Fees: 6.5%
For every sale you make on Etsy, you’ll pay a 6.5% transaction fee. This fee is calculated on the entire amount the buyer pays, not just the item price.
That means Etsy charges 6.5% on:
- the item price
- any shipping fees you charge
- any gift wrapping or personalization fees
So if you sell a $30 item and charge $5 for shipping, Etsy applies the 6.5% fee to the full $35 total. This is important to keep in mind when setting your shipping rates—because even though shipping feels separate, Etsy still takes a cut.
Etsy Payments Fees: 3% + $0.25 (U.S.)
Every order on Etsy goes through Etsy Payments, which is the platform’s built-in payment system. It handles credit cards, debit cards, PayPal, Apple Pay, and more—and it’s required in most countries.
For U.S. sellers, Etsy charges a payment processing fee of 3% of the total sale amount, plus a flat $0.25 per order.
This fee is calculated on the full amount the buyer pays, including item price, shipping, and any extras like gift wrap.
Here’s what that looks like:
You sell a $20 item with $5 shipping. Etsy charges 3% of $25 ($0.75) + $0.25 = $1.00 in payment processing fees.
If you’re outside the U.S., the percentage and fixed fee may vary slightly depending on your country. You can find your exact rate in Etsy’s payment policies.
Use an Etsy Fee Calculator
Etsy’s fees can add up quickly, and it’s not always easy to track them all when setting your prices. If you want a clear picture of your costs and profit margins, use an Etsy profit calculator.
These tools let you enter your item price, shipping charge, and quantity to see exactly how much Etsy will deduct in listing, transaction, payment processing, and ad fees.
It’s one of the easiest ways to make sure your pricing actually covers your costs—and leaves you with the profit you want.
Shipping Labels & Purchase Protection
When you ship orders, you have the option to buy shipping labels directly through Etsy. You’ll pay the same rate the carrier charges, which is calculated based on the package weight, size, destination, and chosen shipping speed.
Buying labels through Etsy is optional—but highly recommended.
Why? Because Etsy’s Purchase Protection program only covers you if you use Etsy’s labels (or if you manually upload valid tracking information). This protection helps cover you in case of lost or damaged packages.
So while you’re free to ship on your own, using Etsy’s labels keeps your shipping process streamlined and keeps your orders eligible for protection.
Etsy Ads & Marketing Fees
Etsy offers two types of paid advertising to help you get more visibility and sales: Etsy Ads and Offsite Ads.
Etsy Ads Fees (Onsite)
These are ads that show your listings at the top of Etsy search results and other prominent spots on the site. You set a daily budget, and Etsy charges you per click, typically between $0.20–$0.50 per click. You’re only charged when someone actually clicks your ad.
You have full control here—you can start, stop, or adjust your budget at any time.
Offsite Ads Fees
These are ads Etsy runs for your listings on platforms like Google, social media, and other partner sites to bring shoppers to your shop. You don’t pay upfront for these, but if someone clicks an Offsite Ad and makes a purchase, Etsy takes a percentage of that sale:
- 15% if your shop made less than $10,000 in the past 12 months (you can opt out).
- 12% if your shop made $10,000 or more in the past 12 months (participation is mandatory at this level).
The bottom line: Onsite Ads you control and budget for directly. Offsite Ads are automatic, and you only pay when they result in a sale. Both can help drive traffic, but it’s important to factor these costs into your pricing strategy.
Etsy Plus: $10/Month
Etsy Plus is an optional subscription that gives you a few extra perks to help grow your shop.
For $10/month, you get:
- 15 free listing credits each month (worth $3)
- $5 in Etsy Ads credits each month
- Access to shop customization options and discounts on things like a custom web address
These benefits can offset part of the cost if you’re already running ads or listing lots of products. But it’s not required—many sellers do just fine without it. If you want a little extra flexibility and don’t mind the monthly fee, Etsy Plus can be worth it.
Etsy Pattern: $15/Month
Etsy Pattern is an optional website builder that lets you create your own stand-alone online store using your existing Etsy listings.
It costs $15/month after a free 30-day trial and gives you a simple, customizable site under your own domain.
Keep in mind: sales made through your Pattern site still incur Etsy Payments processing fees, even though you don’t pay Etsy’s listing or transaction fees for Pattern-only sales.
It’s a good option if you want your own branded storefront alongside your Etsy shop, but it’s not required.
Etsy Fees FAQ (2025)
Are Etsy listing fees auto-renewed?
Yes. Listings stay active for 4 months. If your item doesn’t sell in that time, it will auto-renew (if you’ve enabled that option) and you’ll be charged another $0.20 per listing. You can turn auto-renew on or off under Renewal Options in your Listings Manager.
How do listing fees work with multiple quantities?
When you create a listing, you pay $0.20 upfront. That covers the first sale. Every additional item sold from that same listing costs another $0.20. If you have 10 units of the same item and sell them all, you’ll pay $2.00 total in listing fees.
What is a private listing and how much does it cost?
A private listing is for a specific buyer—often for custom or one-off items. You’re only charged the $0.20 listing fee when the buyer completes the purchase.
What is Etsy’s transaction fee?
Etsy charges 6.5% of the total order amount, including the item price, shipping, and any personalization or gift wrap. This fee only applies when you make a sale.
Does Etsy charge a fee on shipping?
Yes. The 6.5% transaction fee also applies to any shipping fees you charge the customer, since it’s part of the order total.
Do I have to pay for shipping labels?
Etsy labels are optional, but you’ll pay carrier rates if you use them. They make shipping easier and are required if you want to qualify for Etsy’s Purchase Protection Program.
How much does Etsy charge to process payments?
When a buyer pays through Etsy Payments, Etsy charges U.S. sellers 3% of the order total + $0.25 per order. Rates vary slightly by country.
Does Etsy charge for in-person sales?
If you take payments in-person through Square (and it’s not synced with your Etsy inventory), Etsy still charges a $0.20 transaction fee. Square may also charge their standard processing fees.
What does Etsy Plus include?
Etsy Plus is an optional $10/month subscription. You get 15 free listing credits, $5 in Etsy Ads credits, and some shop customization perks. It’s completely optional.
What is Etsy Pattern?
Etsy Pattern is an optional $15/month service that lets you create your own website using your Etsy listings. You still pay payment processing fees on sales, but Pattern doesn’t charge the standard listing or transaction fees for Pattern-only sales.
How much do Etsy Ads cost?
- Etsy Ads (Onsite): You set your budget and pay per click — typically $0.20–$0.50 per click.
- Offsite Ads: You pay only when an Offsite Ad leads to a sale. The fee is 15% if you earned under $10,000 in the past year (and you can opt out), or 12% if you earned $10,000+ (mandatory).
Why does Etsy charge so many fees?
Etsy’s fees cover the cost of running the marketplace, processing payments, providing buyer protection, and driving traffic to your listings through search and ads. While they do add up, they’re still lower than many competing platforms.
Over to You: Price Smart and Stay Profitable
Etsy fees are just part of running a shop—and compared to many other marketplaces, they’re still relatively affordable. The key is understanding how they work and building them into your pricing from the start.
If your profits feel too tight, don’t panic. Run your numbers through an Etsy fee calculator and adjust your prices or strategy as needed.
Every platform charges fees, but with smart planning, you can keep more of your earnings and grow a healthy, profitable shop. You’ve got this.
As always, happy selling!
One reply on “Etsy Fees Explained: What You’ll Pay to Sell on Etsy in 2025”
Etsy is not a low cost marketplace. In addition to their normal fees they charge, in the UK, a .25% Regulatory Operating Fee because Etsy don’t want to pay their UK digital sales tax. Then we get penalised by 12% for being successful through mandatory off site ads FOREVER. Finally they take a fee out of any sales taxes paid. I am paying about 25% commission per sale hike my prices accordingly as well as listing ono ther marketplaces with equal success.. Etsy, stop ripping us off, don’ts penalise success and pay your taxes.