How Much Does Etsy Charge: Discover Fees in 6 Questions
What is your first question when you decide to sell items on Etsy? Can it be: "How Much Does Etsy Charge?" Then, you are not alone.
Etsy fees and other charges are always trend topics among sellers. Because Etsy charges miscellaneous types of fees and they all have different calculations. Moreover, it directly affects the profit margin. Hence, the loss from the profit margin is inevitable if you are unsure about Etsy charges.
Do not worry! In this article, we will uncover this complicated issue for all Etsy sellers in 6 questions.
Table of Contents:
How Much Does Etsy Charge To Sell Something?
While Etsy is free to sign up, selling is not. You have to master Etsy fees in order to understand what you have to pay Etsy to sell something.
There are basically 10 Etsy fees. These are:
- Listing Fees
- Transaction Fees
- Advertising and Promotional Fees
- Subscription Fees
- In-Person Selling Fees
- Payment Processing Fees
- Shipping Fees
- Regulatory Operating Fees
- Pattern Fees
- Currency Conversion Fees
Each fee and charge are different and also determined by Etsy. For more details please visit: How To Calculate Etsy Fees with Free Etsy Fee Calculator.
How Much Does Etsy Charge For Shipping Labels?
One of the advantages of purchasing shipping labels on Etsy is that you do not need to go to the post office. Just deliver it to the post office after creating the label.
If you create a label and you do not use it, you can take your money back in that way. You get noticed for the discounts.
There are 6 logistics companies that you can buy shipping labels from. They are:
Let’s deep dive into Etsy shipping labels and discover the most preferred ones.
No additional fees from Etsy to use Canada Post shipping labels, outside Etsy’s normal fees.
Your savings level reached in your connected Canada Post Solutions for Small Business account will determine your postage rate. Your savings level will show in your Etsy account, such as when you purchase shipping labels. You can also use Price Your Shipping tool for deciding strategy.
The cost is related to the origin, destination, weight, and dimensions of the package, as well as any fuel surcharges and taxes associated with your location. When you add the details of the package, you can see its total cost when you purchase a label.
The fees will appear in Canadian Dollars (CAD) and US Dollars (USD). All final label charges will be listed on your payment account in CAD.
The cost of a shipping label will depend on the origin, destination, weight, and dimensions of the package.
You get a discount up to 30% lower than you would pay at the post office or elsewhere online. There are no additional membership fees to use Etsy Shipping Labels.
If you make a mistake when you measure your package, USPS refunds you the difference.
There are no additional fees from Etsy to use FedEx shipping labels.
When you purchase a FedEx Shipping Label on Etsy, the label’s cost is an estimate from FedEx based on your entered shipping service, weight, dimensions, origin zip code, and destination zip code.
When the package is delivered, FedEx will verify that all of the information you entered is accurate. If any discrepancies are found at that time, FedEx will adjust the final cost of the label.
Additional fees, associated credits or surcharges will also be listed on your payment account as a “FedEx Shipping Label Adjustment.
How Much Does Etsy Charge Per Listing?
When you list an item for sale Etsy charges you $0.20 USD. There are no additional listing fees for items already listed on your Etsy shop.
Listings that you only make available on your Pattern site do not incur a listing fee. You will be charged a listing fee for creating or renewing a listing on Etsy. You can edit your listing without getting charged.
You will be charged a listing fee whether the listed item sells or not. However, if you create a private listing, you will only be charged when the private listing is sold.
💡 After four months, Etsy.com listings expire. However, pattern-only listings do not expire.
If you list multiple quantities of the same item, the initial listing fee will be $0.20, and the listing will be automatically renewed at $0.20 after each of the items sells. You can see listing fees in your payment account.
💡 Listing fees are non-refundable.
If you don’t choose to use automatic renewals for a listing, at the end of the four-month, Etsy will automatically renew your listings. You will be charged the listing fee of $0.20 for each of these listings until you cancel automatic renewals.
You can control it in the Listings Manager. You can see the status, make it manual or automatic in Renewal Options. Once you cancel, you will only be charged for the current listing period.
How Much Does Etsy Charge Per Transaction?
Plus the amount you charge for shipping and gift wrapping, Etsy will charge you a transaction fee of 6.5% of the selling price for each listing when you make a sale.
The transaction fee was 5%, however, Etsy increased it to 6.5% on April 11, 2022, in order to bring more Etsy buyers, improve support service and keep Etsy unique.
If you sell from the US or Canada, the transaction fee will not apply to sales tax, Goods and Services Tax ("GST"), or Harmonized Sales Tax ("HST"), if you have not included those charges in your listing price.
How Much Does Etsy Charge For Shipping?
For US or Canada sellers, USPS or Canada Post may be used for shipping rates automatically calculated for your orders by using calculated shipping. When you use calculated shipping, the amount will change based on some factors:
- Total weight and dimensions the order
- Buyer's address
- Shipping service that the buyer selects during Checkout
Though, you can regulate your own shipping rates by using Etsy’s Price Your Postage tool for USPS or the Price Your Shipping tool for Canada Post rates.
Determining Your Own Shipping Rates
Etsy enables sellers to determine their own shipping rates based on the countries.
Etsy sellers can set the shipping rates as "One item" and "Each additional item". Keep in mind that you can only enter one rate for each country.
Rates can vary due to weight and distance. You may have a problem with charging less shipping price. Thus, you may charge a high estimate while explaining in your listing descriptions that you'll refund any extra postage.
If you charge more, you can refund the extra cost via the method they paid. You may also want to figure an average, so you may lose money on some shipments but gain it back on others.
It can be deduced that shipping prices vary according to product listing descriptions. Ask buyers to contact you before they purchase for a more exact shipping quote. You can edit the listing's shipping rate and reserve the listing for your buyer.
How Much Does Etsy Charge For Each Sale? Learn Details with 4 Examples
Now it is time to illustrate all fees with 4 product examples through 4 various selling price ranges. We will use EtsyHunt Product Research Tool and Etsy Fees Calculator.
When you filter Etsy product that is sold under $10 by EtsyHunt Product Tool you will explore multiple items. We can continue with the first one which is Keychain Set selling at $8.38.
The product price is $8.38 and shipping is free. Let’s suppose other fees are as follows:
- Cost of product: $2
- Shipping cost: $3
- Total product + shipping cost: $5
- Listing fee: $0.2
- Transaction fee: 6.5% * (Product price + shipping) = $0.55
- Payment processing fee: 3% * (product price + shipping) + $0.25 = $0.51
- Total Etsy fees: $1.25
- Total Cost: $5 + $1.25= $6.25
- Estimated Profit: $2.14
Between $10 and $30
The next item is a personalized name necklace with a birth flower from one of the Etsy Star Sellers.
The product price is $16.20 and the seller offers free shipping. So, it is time to uncover how much does Etsy charge for this item.
- Cost of product: $4.85
- Shipping cost: $3
- Labor cost: $2
- Listing fee: $0.2
- Transaction fee: 6.5% * (Product price + shipping) = $1.06
- Payment processing fee: 3% * (product price + shipping) + $0.25 = $0.74
- Total Etsy fees: $1.99
- Total Cost: $9.85
- Estimated Profit: $4.37
Between $30 and $200
When analyzing products selling between $30 and $200, women's feather print scarf may grab your interest due to its probable high-profit margin.
So, do you want to explore the costs and fees for this item? Bear in mind that the calculation is the same for all items, just the numbers may vary.
The product price is $170 and the seller offers free shipping. However, the seller applies a discount of 5% to encourage his buyers.
- Cost of product: $44.56
- Shipping cost: $14
- Labor cost: $2
- Discount cost: $8.5
- Listing fee: $0.2
- Transaction fee: 6.5% * (Product price + shipping) = $10.50
- Payment processing fee: 3% * (product price + shipping) + $0.25 = $5.10
- Total Etsy fees: $15.80
- Total Cost: $70.56
- Estimated Profit: $75.15
Not every product is cheap on Etsy. Especially special products that take a long time to manufacture and require labor are listed at expensive prices. So, what is the profit margin on these products? It is the epoxy coffee table’s turn.
This ocean wave resin table has a $726 selling price. Furthermore, it has been sold 1276 times so far. However, let’s say this time the seller requires shipping costs from the buyer instead of providing free shipping.
- Cost of product: $302
- Shipping cost: $0
- Other costs: $43
- Listing fee: $0.2
- Transaction fee: 6.5% * (Product price + shipping) = $47.19
- Payment processing fee: 3% * (product price + shipping) + $0.25 = $22.03
- Total Etsy fees: $69.42
- Total Cost: $345
- Estimated Profit: $361.58
Last but not least is a real-life example. Handmade leather item manufacturer sold a leather strap at 52 CAD on Etsy. So, examine the summary below to see How Much Does Etsy Charge for this sale.
If you want to advertise your listing, there are two options on Etsy:
1. Etsy Ads
You can set a budget to limit the amount you're willing to pay for Etsy Ads to promote your listings or shops on Etsy.
Your daily maximum budget can be set at or above a predetermined minimum set by Etsy, and you will not be charged more than your maximum budget on a daily basis.
2. Offsite Ads
Etsy advertises your listings on social networks and search engines. If a buyer clicks on it and then places any orders from your shop within 30 days of that click, you will be charged an advertising fee on this order.
The Offsite Ads fee you are charged for Attributed Orders depends on your shop’s sales over the prior 365 days. The standard fee is 15% and 12% applies under some conditions.
You will face fees and other charges when selling on Etsy, as in any online marketplace. A successful seller should know all the costs on the platform she/he is selling and set the selling price of listed items accordingly.
In this article, we explained with examples what cuts would occur after listing the item. Thus, follow this guide carefully to comprehend How Much Does Etsy Charge.