It costs money to make money. And when it comes to Etsy fees in 2023, that saying rings true. That’s because Etsy fees will undoubtedly dig into your profits, even if they’re lower than other online marketplaces. So if you want to make a living on Etsy’s global marketplace, you’ll have to price your products accordingly.
Understanding Etsy Fees in 2023
Before setting your prices, you need to know what fees you’ll be required to pay for operating your business on the Etsy marketplace.
Etsy fees are mandatory for all sellers. So yes, it can be annoying when those pesky fees dip into your hard-earned profits. But those fees play a more significant role in running an online business than you might think.
To understand Etsy fees in 2023, you must first understand the role fees play in your business and how they affect your profit margins/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 Etsy fees sellers are required to pay in 2023:
What are Etsy listing fees?
Etsy charges you to make your products available to their audience. They do this through a flat rate of $0.20 per listing each time you publish a product on Etsy.
If you create a single listing for products with different variations (like multiple sizes or colors), you’ll be charged a listing fee each time a new item is sold.
When your listing is published or automatically renewed, these listing fees come from your payment account.
Are Etsy listing fees auto-renewed?
If an Etsy listing isn’t sold, it only lasts online for four months. But as a seller, you can relist unsold products manually or set them to auto-renew.
Whether your listing is manually renewed or you use auto-renew, each item relisted incurs an additional $0.20 listing fee. You can turn auto-renew on and off under your listings manager under the “Renewal Options” section.
How do Etsy listing fees work with multiple quantities?
When selling multiple quantities of the same item, 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’re selling multiple shirts, you’ll be charged $0.20 for each shirt, even if they’re listed as multiple quantities under the same listing.
This may seem confusing at first, but here’s an easier way to look at it: for every item you sell, Etsy charges a flat fee of $0.20. So if you have one listing that includes multiple shirt sizes and color variations, you’ll pay a $0.20 listing fee for each item sold.
Remember, you won’t be charged when you sell the first item on a listing with multiple qunatities. After all, you’ve already paid that listing fee. However, when you sell the second one, you’ll incur the listing fee. Same for the third and so on.
These fees will appear in your payment account as a multi-quantity fee.
After four months, if you don’t sell out of your entire inventory, you’ll automatically be charged a renewal fee for the items left in stock. So if you only sell 2 out of 10 shirts, Etsy will renew the listing with 8 shirts in stock, and this fee will appear as an auto-renew sold fee.
What’s a private listing fee on Etsy?
Etsy allows listing an item for sale to a single buyer. This can be great for products customized beyond what you usually offer or made specifically to order and incur a different sale price.
Once your private listing is live, you’ll be charged the $0.20 listing fee, but only when the seller has made the purchase.
What are Etsy’s transaction fees?
Each and every sale on Etsy comes with a base transaction fee. Today, that fee is 6.5% of the sale price (item price + shipping + wrapping fees + any personalization charges).
The transaction fee is charged in your local currency.
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.
Does Etsy charge a fee for shipping?
Etsy doesn’t necessarily charge a specific fee for shipping. However, the 6.5% transaction fee will be applied to your customer’s final sale price, including any amount they pay for shipping.
So if you charge for shipping on top of the sale price, Etsy will collect a total of 6.5% of that added shipping charge.
How do Etsy fees work?
Let’s look at an example.
Say you’re selling soy candles for $17, and you charge $5 for shipping.
When you listed your item, you incurred a $0.20 listing fee. And when your item sells, you incur a 6.5% transaction fee on the final sale price (in this case, the cost of the item plus shipping). Therefore, the transaction fee you pay on this order is $1.43.
Add them together, and your total fee for listing and selling your candle on Etsy is $1.63.
Does Etsy charge a fee for in-person payments?
If you take in-person 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 additional transaction fees, currently 2.6% + $0.10 for all swipes.
How much are Etsy Payments fees in 2023?
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 fixed rate and a percentage of the item’s total sale price.
To make matters a little more complex, rates and percentages vary by region. 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.
If multiple Etsy fees are confusing, we recommend you check out our Etsy fee calculator. Use this to automatically determine how much you’ll pay in Etsy fees for any given item.
Etsy Plus Fees in 2023
Etsy Plus gives sellers access to tools that help them increase their business with more views, traffic, and sales.
It’s a subscription package that costs $10 per month. Each month, sellers receive the following:
- 15 listing credits
- $5 in Etsy Ad credits
That $10 fee is automatically deducted from your monthly balance until you cancel your subscription. You’re also charged sales tax on this fee for US sellers where it’s applicable.
Does Etsy charge for shipping labels?
Etsy offers a service that allows you to print shipping labels at an additional charge. The exact amount is based on the carrier, shipment origin, destination, package weight, and the dimension of the overall parcel.
Benefits like shipping insurance or signature confirmation are available at an added cost.
While this service could be an added cost depending on the carriers in your region, it’s worth it if you want to speed up the shipping process and keep as much of your shipment services “in-house.”
Etsy shipping labels are required to qualify for Etsy’s Purchase Protection Program unless you manually update your shipping and tracking information for each order.
Does Etsy charge promotional or advertising fees?
If you’re willing to spend some money on advertising, you can bring more traffic to your Etsy shop.
Some advertising 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.
Etsy Onsite Ads Fees
On average, cost-per-click fees for Etsy’s onsite ads will run about $0.20 – $0.50.
Etsy Offsite Ads Fees
Your exact fee percentage depends on the revenue you’ve made in the last 365 days.
- If you’ve made less than $10,000 USD in the last 365 days, you’re charged 15% of each order attributed to offsite ads. But, of course, you can opt out of offsite ads if you want to.
- If you’ve made more than $10,000 USD in the last 365 days, you’re charged 12%, and offsite ads are mandatory for your shop.
To learn more about Etsy’s ad fees, check out their House Rules.
Etsy Pattern Fees in 2023
Pattern by Etsy lets you take your existing Etsy listing and create a stand-alone eCommerce store. You can add your domain name, pick from some attractive website designs, and upload your branding.
The first 30 days of Pattern is free. Then, a monthly subscription fee of $15 will be prorated with your first month.
You’ll pay a domain registration fee if you buy a 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 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 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: Etsy fees are part of doing business
At the end of the day, paying Etsy fees is necessary for conducting business on their online marketplace. However, all things considered, Etsy fees are lower than the majority of other online marketplaces out there.
If Etsy fees put your business underwater, use our Etsy fee calculator to help you figure out a better product pricing structure.
Unfortunately, you’ll have to pay fees no matter where you sell. But taking proactive steps to minimize the impact of fees on your bottom line will make your wallet happier and your business healthier.
One reply on “Etsy Fees Explained: Understanding Etsy Fees in 2023”
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.