I remember when I used to have a really hard time working out exactly what Etsy was charging me every time I made a sale. I understood that to list a product they would charge me .20c but what did they charge me once I made a sale? Every time Etsy sellers make a sale both Etsy and the maker profit! I love that you don’t have to pay Etsy a monthly payment, you only pay when you list and make sales. So let’s break down Etsy’s Fees.

How Etsy Fees Work:

There are three main fees: the Listing fee, the transaction fee and the payment processing fee. This is taking in to consideration that you don’t pay for the additional subscription fee for Etsy Plus and aren’t paying for adds, and don’t make a sale which includes Etsy off site adds. This is at the simplest form what you can expect to pay in Etsy Fees: 

• Listing Fee: always $.20c lasts for 4 months
• Transaction Fee: Item Cost + Shipping Cost x 5% 
• Payment Processing Fee: Item Cost + Shipping Cost x 3% + $.25c (3% for USA, differs by country https://help.etsy.com/hc/en-us/articles/115015628847?segment=selling )

Example: 

Let’s say you sell an item for $20 and charge $5 for shipping. 

• Listing Fee: .20c
• Transaction Fee: $20+ $5 x 5% = $1.25
• Processing Fee: $20+$5 x 3% + .25c = $1
• Total Fees: $2.45 ~9.8% of your price 

Now give it a try, plug in your Item’s cost and calculate your own total fees. Make sure you use this when you are taking in to consideration the total cost of your product, this will help you land on your pricing. 

Fees on other E-commerce Platforms

What does Etsy’s cost to sell look like compared to Amazon Handmade or Ebay? 

Etsy fees are in line with other e-commerce sites and the lowest when I compared to Amazon Handmade and eBay.

Amazon MarketPlace: 

Amazon Marketplace charges a $39.99 monthly fee if you sell more than 40 non-handmade items on one account. Amazon MarketPlace charges a 15% commission on each product sale, and a minimum $1 referral fee. 

More on Amazon MarketPlace: https://sellercentral.amazon.com/gp/help/external/help-page.html?itemID=201817090&language=en_US&ref=efph_201817090_bred_20181422 

Overall, Amazon marketplace charges quite a bit more than Etsy! 

Ebay:

For Most Categories:

Insertion (listing) fee: First 200 listings are free per month, then .35c per listing

Final Value Fee: 10% (Maximum fee $750).

The exact cost of selling an item is based on the types of items you sell, how your listing is set up, and whether or not you have an eBay Store.

There are two types of fees: an insertion fee when you create a listing, and a final value fee when your item sells. 

The amount eBay charges depends on the item’s price, the format and category you choose for your listing, any optional listing upgrades you add, and your seller conduct and performance. 

More on eBay: https://www.ebay.com/help/selling/fees-credits-invoices/selling-fees?id=4364 

Overall, Ebay charges close to Etsy but is still in general more expensive for makers. 

I hope this simple breakdown makes you feel more comfortable about what Etsy charges you to sell on their platform! Etsy has 47.7 million active Etsy buyers worldwide, in 2019 4.9 billion dollars were spent on the platform. Etsy has a structure in place that has a low cost to start selling only .20c to list an item which lasts for 4 months! Once an item sells, Etsy has additional charges but only when a listing sells, their charges are less than other popular e-commerce sites like amazon handmade and eBay. Feel good about selling on Etsy, knowledge is power! Want to be a part of our tribe, make sure you are signed up for our emails, https://view.flodesk.com/pages/5e22e984830fff002625406c we can create beautiful things together and make a great profit as well!