It cost money to make money. And when it comes to Etsy fees in 2022, that saying rings true. That’s because Etsy now charges sellers higher fees than ever before. So if you want to make a living on Etsy’s global marketplace, you’ll have to pay your share of Etsy fees in the process.
Understanding Etsy Fees in 2022
Etsy fees in 2022 are a mandatory cost of conducting business on Etsy. Yes, it can be annoying when those pesky fees dip into your hard-earned profits. But in the grand scheme of running an online business, those fees play a bigger role than you might think.
In order to understand Etsy fees in 2022, you must first understand the role fees play in your business, and how they affect your profit margins and pricing strategy.
Be warned: If you just started selling, Etsy fees can be a bit confusing and add up quickly. Still, don’t let this deter you from selling on Etsy in the first place. Etsy is one of the most affordable online marketplaces to sell your handmade and vintage items while giving you access to millions of global shoppers.
Without further ado, let’s look at the different types of Etsy fees in 2022 that sellers are required to pay.
Etsy Listing Fees in 2022
Etsy charges you to make your products available to their audience. A flat rate of $0.20 per listing is charged each time a product of yours goes live on Etsy. There are no fees to edit a listing.
If you create a single listing for products that come in different variations (for example, sizes or colors), you’ll be charged a listing fee when that item is sold.
Listing fees come out of your payment account when your listing is published or automatically renewed.
Listing Fees: Auto-Renew
Etsy listings only last four months if they’re not sold. You can relist unsold products manually, but you can also set up auto-renew. Each listing automatically relisted incurs a $0.20 fee for convenience. You can turn auto-renew on and off under your listings manager under the “Renewal Options” section.
Listing Fees: Multiple Quantities
Listing fees for multiple quantities is a bit confusing at first, but it’s not as complicated as you might think.
This type of fee comes into play when you have a listing selling more than just a single item. For example, if you have a shirt that’s the same design but available in multiple sizes or colors.
Etsy will charge you one $0.20 listing fee when you set up the listing for the first time. After the first item sells, you’ll be charged an additional $0.20 every time an additional quantity is sold. So if you have 10 of those shirts available, you’ll be charged $0.20 for each shirt you sell, even if they’re listed as multiple quantities under the same listing.
You won’t be charged when you sell the first one, as you’ve already paid the listing fee. However, when you sell the second one, you’ll incur the listing fee for that second shirt.
This will appear in your payment account as a multi-quantity fee.
If you end up selling only a part of your inventory from that listing, you’ll be charged a renewal fee automatically for the items that are left in stock. So if you only sell 2 of those 10 shirts, Etsy will renew the listing with 8 shirts in stock, and this fee will appear as an auto-renew sold fee.
Listing Fees: Private Listing Fee
Etsy makes it possible to list an item for sale but only make that item available to a single buyer. This is great for products customized beyond what you usually offer or made specifically to order and incur a different sale price.
Once your private listing has been put live, you’ll be charged the $0.20 listing fee, but only when the seller has made the purchase.
Etsy Transaction Fees in 2022
Transaction fees are fees that Etsy collects whenever a customer buys an item.
In contrast to listing fees that are charged whenever you list an item for sale, transaction fees are only charged when you make a sale.
Base transaction fee
Each and every sale on Etsy comes with a base transaction fee. Today, that fee stands at 6.5% of the total item cost (item price plus shipping, wrapping, and personalization charges), and it’s charged in your local currency.
Transaction fees apply to the listed cost only, so if you’re based in the US or Canada, remember that it doesn’t include sales tax.
Let’s look at an example.
You’re selling your soy candles for $17.
That will incur a listing fee of $0.20, plus a transaction fee of $1.10 (6.5% of the sale price). Therefore, your total fee for listing and selling your candle is $1.30.
Shipping transaction fee
If you charge for shipping on top of the sale price, Etsy will collect a total of 6.5% of that added shipping charge.
Square fees
Square is a payment gateway used for taking in-person payments. It’s relatively new for Etsy sellers, but it’s growing in popularity.
If you take payments via Square and it’s not synchronized with your Etsy inventory, you’ll be charged a $0.20 fee per transaction. Square may also charge you additional transaction fees.
Etsy Payments Fees in 2022
No matter where you sell, you’ll need to pay payment processing fees. And Etsy is no different. Fees for processing payments are at a set rate and a percentage of the item’s total sale price.
To make matters a little more complex, rates and percentages vary by country. Most are determined by where your bank is located. US sellers pay 3% of the total sale price plus $0.25.
So if you sell your wooden bookends for $25, you’ll be charged a payment processing fee of $0.75 (3% of 25) plus $0.25, meaning the total payment processing fee for this sale was $1.
Etsy Plus Fees in 2022
Etsy Plus gives sellers access to tools that help you level up your business, get more views, traffic, and ultimately more sales.
It’s a subscription package that costs $10 per month. Each month, sellers receive:
- 12 listing credits worth $4
- $5 in Etsy Ad credits
That $10 fee is automatically deducted from your balance each month until you cancel your subscription. You’re also charged sales tax on this fee for US sellers where it’s applicable.
Etsy Shipping Fees in 2022
Etsy offers a service that allows you to print shipping labels with them.
If you choose to use this service, you’ll be charged based on the carrier, shipment origin, destination, package weight, and dimensions, with benefits like insurance or signature confirmation coming at an added cost.
While this service is an unnecessary cost, it’s worth it if you want to speed up the shipping process and keep as much of your shipment services “in-house.”
Promotional and Advertising Fees
There are many ways that you can pay to get more eyes (traffic) on your Etsy listings.
Some options allow you to set a budget and appear at the top of popular search results. Other options, like Etsy’s Offsite Ads, place advertisements for your listings on publishing partners on Etsy, Google, social media, etc.
These fees depend on several factors relevant to your specific situation, such as budget, the number of ads you want, and even how much you’ve sold in the last year. Due to this model, we can’t give you even a rough idea, but you must be aware of it.
Read more about this in Etsy’s House Rules.
Etsy Pattern Fees in 2022
Etsy’s Pattern lets you take your existing Etsy listing and create a somewhat stand-alone eCommerce store. You can add your own domain name, pick from some attractive website designs and upload your own branding.
The first 30 days of Pattern are free. Then, there’s a monthly subscription fee of $15, with your first month being prorated.
You’ll pay a domain registration fee if you buy said domain name through Etsy’s partner, Tucows.
You can put Etsy listings in your Pattern store and not on your Etsy store, and you’ll avoid the usual listing and transaction fee. However, if that listing is on both your Pattern and Etsy store, it’ll be subject to Etsy’s regular listing and transaction fee.
It’s also important to note that Pattern-only listings that are paid for via Etsy payments will also incur Etsy’s payment-processing fee.
Etsy Pattern comes with its own list of pros and cons, so it may or may not be worth it to you.
Conclusion: fees hurt
If you’re a small seller – the profits you make selling on Etsy most likely aren’t going to move you to a bigger home.
But you don’t want to give those profits back to Etsy, either.
Unfortunately, you’ll have to pay some fees, but taking proactive steps to minimize the fees that you have to pay on Etsy will undoubtedly help keep your wallet looking healthier.
