June 1, 2023

How Much Does It Cost To Sell On Etsy

If you sell on Etsy or plan to sell on Etsy, then you should read this article. This article will tell you how much it will cost to sell on Etsy, and what benefits there are to selling on Etsy.
How Much Does It Cost To Sell On Etsy
How Much Does It Cost To Sell On Etsy

Did you know that the Etsy marketplace has an average of 377.4 million visits every month? 

Etsy has become a popular online marketplace in the ecommerce space with at least 2.1 million sellers and around 43 product categories

Perhaps you're a small business owner and are wondering - is selling on Etsy worth it? What is the cost of selling on Etsy? 

Well, read on as we break down the different Etsy seller fees involved in selling with Etsy. In addition, we will look at some effective tips for selling on Etsy. 

How much does it cost to sell on Etsy? 

Here's the breakdown of fees for selling on Etsy: 

Basic fees 

  • Listing fees: Etsy charges sellers a flat fee of $0.2 for each listing put up on the Etsy marketplace. Etsy listings expire every four months. This means you will need to pay another $0.2 for renewal fees. Also, if a customer purchases multiple units of a product, they will be charged $0.2 for each unit. 
  • Payment processing fee: Payment processing fees cover the costs of dealing with bank transactions and credit cards using Etsy Payments. This is 3% of the sale including tax and shipping for an Etsy seller in the U.S., plus a flat rate of $0.25. (transactions in other countries may vary in payment processing fees) 
  • Transaction fee: When you make a sale on Etsy, you are charged 6.5% of the total sales price. 
  • Shipping transaction fee: Etsy also charges 6.5% of the total shipping costs your customers pay. 
  • Pattern fee: Pattern is a software that allows you to build a personalized storefront including domain name, color, logo, and website layout) to sell your products. This costs $15 monthly with a 30-day free trial. 
  • Currency conversion fee: For international transactions, you will be charged 2.5% of your total sales price as a currency conversion fee. 
  • Regulatory operating fee: Sellers in selected countries are charged a fixed percentage of total sales prices apart from other fees due to the increased cost of operation in these countries. Some of these countries include the United Kingdom (0.25%), France (0.4%), Turkey(1.1%), etc. 

Optional fees 

  • Etsy Ads/Promoted listing fee: If you're promoting your product within the marketplace, you will need to pay onsite Ad fees. Ads are based on pay-per-click and can vary depending on the budget and demand. 
  • Offsite Ads fee: The Etsy Offsite Ad program allows sellers to promote their products on sites like Google and Facebook. When a customer clicks on your offsite ad and purchases your product within 30 days, you are charged either 12% or 15% depending on your annual sales. Etsy sellers who have annual sales of under $10,000 are charged 15% while sellers with over $10,000 in annual sales are charged a discounted price of 12%. 
  • In-person selling fee: if you have a physical store, you can link it to your Etsy listing using Square. However, if you sell with Square without syncing it to your Etsy seller account, you will be charged $0.20 as a “Square Manual” fee. 
  • Etsy plus fee: This is an optional package that offers perks like Etsy shop customization, accepting restock requests directly from your shop, discounts on custom shipping boxes and business cards, etc. This costs $10 per month.

What percentage does Etsy take from you? 

As we have seen from the breakdown, Etsy seller costs could go as high as 20% of your total costs. This includes transaction fees, listing fees, payment processing fees, and so on. 

For additional features like offsite ads, Etsy will also charge another percentage of your sales prices. 

However, in general, the higher your sales price, the lower the percentage of Etsy seller fees. 

Ways to save money when selling on Etsy

So how do you save money while selling on Etsy? Here are some Etsy seller tips to help you: 

Increasing your product’s prices 

Some sellers set low product prices which ultimately leads to lower profits. One way to save money on Etsy fees is to increase your product price by considering labor costs, the cost of tools used, and other factors. Not only can you save money on Etsy fees, but you can also increase the perceived value of your product. 

Choose which listings to promote on site 

Promoting your listings is one way to increase visibility and increase sales on Etsy. However, Etsy ad fees could accumulate quickly if not properly controlled. You can promote the listings that bring in the most sales and turn off the others. 

Cutting shipping and production costs 

Cutting production and shipping costs are other ways you can cut down on selling on Etsy costs. 

For example, you can choose to use high-quality but cheaper raw materials or buy in bulk to get a discounted price. 

Offer free shipping 

Etsy charges shipping transaction fees based on the total cost of shipping. By offering free shipping, you can cut down on Etsy fees. On the flip side, customers love free shipping. With free shipping, you can expand your customer reach and increase sales. 

Is selling on Etsy different from Amazon? 

Both Etsy and Amazon are popular selling platforms that can help business owners grow and scale their businesses. 

However, both differ in fees, payment processes, fulfillment processes, and so on. 

On the Amazon marketplace, sellers do not have to pay listing fees. On the other hand, Etsy sellers pay a flat rate of $0.2. However, Amazon charges selling fees of around 15% while Etsy charges 6.5%. 

Generally, Amazon is more competitive and can take some time to yield returns on investment. 

If you sell creative crafts that are affordable, Etsy may be the perfect selling platform for you. 

How to know if selling on Etsy is for me 

So is selling on Etsy worth it? Well, this relies on some factors.

As a business owner, you want to consider the value you are getting from the platform as well as your profit margin. 

Evaluate your costs and subtract them from your selling price to get an idea of what your profit margin will look like. Many sellers are able to navigate Etsy seller costs and make a good profit. However, if you are a low-volume seller and can't navigate through the cost of selling on Etsy, you may want to consider other alternatives. 

Wrapping up  

Etsy fees are quite competitive. However, you can make a good profit if you are willing to invest some time and effort. Keep an eye on the costs and work on building your brand. 

Key Takeaways: 

  • Etsy seller fees include listing fees, payment processing fees, transaction fees, shipping transaction fees, pattern fees, currency conversion fees, and regulatory operating fees
  • Fees can go as high as 20% of your total costs
  • Ways to save money when selling on Etsy include increasing product prices, choosing which listings to promote, cutting shipping and production costs, offering free shipping, and evaluating the value and profit margin of the platform


How much does it cost to use Etsy to sell? 

Etsy charges three main fees for selling on their platform: a listing fee of $0.20 per item, a transaction fee of 5% of the item's sale price, and a payment processing fee of 3% plus $0.25 per transaction which will be automatically deducted from your sale price. 

Additionally, there may be other fees, such as fees for using Etsy's advertising services, international sales, and digital product sales. It's important to factor in these fees when pricing your items and setting up your shop.

Does Etsy charge a monthly fee? 

Etsy does not charge a monthly fee to maintain a shop on their platform. Instead, they charge fees for each transaction and listing and additional services such as advertising or selling digital products. 

Is it still worth it to sell on Etsy? 

Whether selling on Etsy is worth it depends on a variety of factors, such as the type of products you sell, your profit margin, and your overall business goals. Selling on Etsy can be worthwhile for many small businesses and entrepreneurs, as it provides access to a large customer base and low start-up costs, as well as built-in marketing tools and community support. 

However, selling on Etsy also comes with its downsides, such as fees and competition, as well as limited branding opportunities and dependence on a third-party platform. It is important to have a growth strategy for your business to maximize your profit on Etsy.

Who pays for shipping on Etsy? 

On Etsy, the responsibility for paying for shipping can vary depending on the seller's preference and the shipping options they offer to buyers. Sellers can choose to offer free shipping while they cover the shipping cost or have the buyer pay for the shipping. 

Etsy also offers shipping labels through its platform, which can provide discounted rates for sellers, with the cost of the label being deducted from the seller's payment when the item is sold.

How does Etsy pay me? 

Etsy pays sellers through their payment processing system, Etsy Payments. To receive payments, sellers need to set up an Etsy Payments account and link it to their shop, providing personal and bank account information. 

When a buyer purchases an item, the payment is processed through Etsy Payments, and the funds are held in the seller's account which is later transferred to their linked bank account on a regular schedule or manually. Etsy charges a payment processing fee of 3% + $0.25 per transaction for using Etsy Payments. 

What are the cons of selling on Etsy? 

While selling on Etsy has many benefits, there are also some potential downsides to consider, including various fees, fierce competition, limited branding opportunities, dependence on a third-party platform, risk of copycats and intellectual property issues, and limited control over customer communication due to Etsy's policies. You need to weigh these cons against the benefits of selling on Etsy and consider whether the platform fits your business goals and needs.

What are the pros of selling on Etsy? 

Selling on Etsy has several advantages, including a large customer base of over 81 million active buyers, low startup costs with no monthly charges, built-in marketing and SEO tool to increase customer reach, strong community and support, customization options, and easy shipping options. 

Additionally, Esty provides their sellers with tools and resources to support their success.

What is the most profitable to sell on Etsy? 

Some profitable categories on Etsy include home decor, jewelry, craft supplies, personalized items, and vintage items. Customers are often looking for unique items that cannot be found in traditional stores and are willing to pay a premium. However, the most profitable items to sell will depend on a seller's skills, resources, and interests.

What are the types of fees and taxes for selling on Etsy 

Sellers on Etsy may encounter several fees and taxes, including listing fees, transaction fees, payment processing fees, shipping fees, sales tax, and currency conversion fees. These fees can vary depending on the buyer's and seller's location. 

It is expedient for sellers to understand and factor in these costs when pricing their items and determining their profit margins.

How much does it cost to list on Etsy? 

It costs $0.20 to list an item on Etsy, regardless of whether or not the item sells. This listing fee applies to each item listed on the platform and is charged by Etsy as a way to cover the costs of maintaining and operating the website. The listing fee is non-refundable and must be paid when the item is listed on Etsy.

What can you sell on Etsy?

Sellers can list items such as handmade jewelry, clothing, art, pottery, candles, vintage clothing, accessories, home decor, craft supplies, digital downloads, art, photography, toys, games, and pet supplies. 

It is important to note that Etsy has strict guidelines and policies regarding what can be sold on the platform, and sellers should review and adhere to these policies before listing their items.

How to start selling on Etsy

To start selling on Etsy, create an account, set up your shop by filling out your shop profile, adding a banner and logo, creating shop policies, if there are any, and listing your items with photos, descriptions, pricing, and shipping information. 

Set up payment and shipping options and promote your shop using social media, email marketing, and other promotional tactics. Finally, manage your orders, engage with buyers, and ship items on time to maintain a positive reputation on Etsy.

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