Etsy Fees Breakdown: Listing, Transaction, Payment & Offsite Ad Fees
Etsy stacks a listing fee, 6.5% transaction fee, payment processing, and optional offsite ad fees. Know your true margin before you list.
Direct answer
Etsy stacks four fees: a $0.20 listing fee per item, a 6.5% transaction fee on the sale price, a payment processing fee (about 3% + $0.25 in the US), and optional offsite ad fees of 12–15%. A $40 item can lose $5 to $7 before you ship. Know your true margin before you list.
The problem
Sellers price a handmade item by material and time, list it, and are surprised when the payout is thin. Because Etsy charges at multiple points — listing, sale, and payment — the cuts are easy to underestimate.
Why it happens
Etsy funds search, checkout, and fraud protection through layered fees rather than one big cut. The listing fee keeps the marketplace uncluttered. The offsite ad fee pays for Etsy pushing your product on Google and social — but it applies even when the buyer found you directly, if you're over the sales threshold.
The solution
- 1
Count the listing fee
Every item you list costs $0.20 and renews each time it sells or auto-renews. A shop with 100 active listings pays $20 just to stay listed every cycle. It's small but constant.
- 2
Add the 6.5% transaction fee
Etsy takes 6.5% of the item price plus shipping charged to the buyer. On a $40 sale that's $2.60. It applies to the total, not just the product.
- 3
Include payment processing
In the US this runs about 3% plus $0.25 per order on top of the transaction fee. Combined with the 6.5%, you're near 10% before ads. Rates differ by country — check your shop's fee page.
- 4
Decide on offsite ads
If your shop earns over $10,000 in a year, Etsy enrolls you automatically at 12% on sales it attributes to its ads. Below that, it's optional at 15%. You can opt out while under the threshold to protect margin.
Summary
- •Etsy fees: $0.20 listing + 6.5% transaction + ~3% payment + 12–15% ads.
- •A $40 item can lose $5–$7 before shipping.
- •Offsite ads are mandatory above $10K in annual sales.
- •Price for the full stack, not just the product cost.