Etsy Fees Explained: How much does it cost to sell on Etsy? (2026)

Last Updated on December 26, 2025 by Himanshu Rawat

Starting an Etsy shop can be an exciting venture for creatives and entrepreneurs looking to turn their passions into profits. However, before you dive in, it’s essential to understand the costs associated with selling on the platform. So, what is the cost to sell on Etsy? From listing fees to transaction charges, there are various expenses that every seller should consider.

In this blog, we’ll break down the cost to sell on Etsy, so you can make informed decisions and maximize your potential earnings. Whether you’re just starting or looking to grow your existing shop, knowing what it costs to sell on Etsy will help you navigate your journey effectively. Let’s explore the different fees and costs involved to ensure you’re well-prepared for success!

Tip: Before figuring out your Etsy selling fees, check if you need a business license for your etsy shop.

How much does Etsy charge to sell your product?

When it comes to selling on Etsy, understanding the different fees is crucial for your success. Here’s a breakdown of the main costs involved in operating your Etsy shop:

1. Listing Fees

Etsy charges a listing fee of $0.20 per item you want to sell. This fee is added to your payment account as soon as you list the item, regardless of whether it sells. Keep in mind that each listing expires after four months. If your item doesn’t sell during this period, you’ll need to renew the listing and pay the fee again.

There are also additional listing fees that can apply in certain situations. For instance, if a listing expires, you can choose to enable auto-renew, which will automatically charge you another $0.20 to keep your item active. If you sell multiple quantities of a listing in a single transaction, you’ll incur a multi-quantity fee of $0.20 for each additional item sold after the first. Additionally, if you create a private listing for a specific buyer, a fee of $0.20 will be charged when that buyer purchases the item.

2. Transaction Fees

In addition to listing fees, Etsy also charges transaction fees on the total amount of your sales. This fee is set at 6.5% of the total order amount, which includes the price of the item as well as any shipping and gift-wrapping fees if applicable. This means that if you’re selling a product for $50 and charging $5 for shipping, your transaction fee would be based on the total of $55.

It’s important to note that this fee applies to every transaction made through Etsy Payments. Etsy also converts the transaction fee into your payment account currency at the current market rate if your listing currency differs from your payment account currency.

When calculating your expenses, make sure to factor in these transaction fees, as they can add up quickly. Understanding “how much it costs to sell on Etsy” is key to maintaining healthy profit margins and setting appropriate prices for your products.

3. Currency Conversion Fee

If your Etsy shop is set up in a different currency than your payment account, Etsy will charge a 2.5% currency conversion fee. This fee covers the cost of converting your customer’s payment into your payout currency.

For example, if a buyer pays in USD but your account is in EUR, Etsy automatically converts the payment and deducts 2.5% of the total amount.

To avoid this fee, you can set your listings in the same currency as your payment account. This way, no conversion is needed, and you keep more of your earnings.

4. Shipping Label Fees

When you sell products on Etsy, you’ll also need to consider shipping label fees. These fees can vary depending on your specific shipping choices and the services you use. If you choose to purchase Etsy Shipping Labels, the cost will be based on the carrier you select, the package size, and the destination. Etsy offers discounted shipping rates for sellers, which can help you save money compared to buying labels directly from shipping carriers.

While the exact cost of shipping labels will depend on your selections, it’s essential to factor these fees into your overall expenses. Additionally, you should clearly communicate shipping costs to your customers to avoid any surprises at checkout. Providing transparent shipping information can help build trust with your buyers and improve their shopping experience.

5. Advertising Fees

If you choose to promote your products on etsy, you’ll encounter additional advertising fees. Etsy offers two main advertising options: Offsite Ads and Etsy Ads.

Offsite Ads

With Offsite Ads, your products are advertised on platforms like Google, Facebook, and Instagram. If your store has made less than $10,000 in sales over the past year, you will be charged a 15% fee on the total order amount for any sales generated through these ads. However, if you’ve made $10,000 or more, you’ll benefit from a discounted fee of 12%. It’s worth noting that the Offsite Ad fee will not exceed $100 for any single order, no matter how large.

Etsy Ads

Etsy Ads allow you to promote your products within Etsy’s search results. The fees for these ads vary based on your budget and the competition for your specific products. You can set a daily budget, and Etsy will use that to promote your listings as effectively as possible.

When considering advertising, it’s essential to evaluate whether these expenses align with your marketing strategy. While promoting your items can help you reach more customers, understanding the associated costs will help you determine if it fits within your budget.

6. Payment Processing Fees

When you make a sale on Etsy, you’ll also incur payment processing fees. These fees are charged on each transaction made through Etsy Payments, which is the platform’s primary payment processing system. The payment processing fee consists of a set rate plus a percentage of the total sale price, including shipping and any applicable sales tax.

The exact rate for these fees varies by country, so it’s crucial to check the specific rates applicable to your location. For instance, if you’re in the U.S., the processing fee might be a combination of a flat fee and a percentage of the sale, which can add up depending on the total order amount.

Understanding what is the cost to sell on Etsy means acknowledging these processing fees as a necessary part of doing business. They will be deducted from your sales revenue, so you’ll want to account for them when pricing your products to ensure you maintain a profitable margin.

7. Regulatory Operating Fees

In some countries, Etsy charges an extra fee called the Regulatory Operating Fee. This fee is part of the government’s rules for digital services and helps cover taxes or regulations in your region.

The fee is calculated as a percentage of the total order amount, including the item price, shipping, gift wrapping, and personalization if applicable.

Here are the current rates for some countries in 2026:

• United Kingdom – 0.32%
• Canada – 1.15%
• France – 0.47%
• Italy – 0.32%
• Spain – 0.72%
• Türkiye – 2.24%
• India – 0.29%
• Vietnam – 1.24%

How it affects you:

• Etsy automatically adds this fee to the order.
• You don’t need to calculate it manually, but you should factor it into your product pricing.
• Being transparent with customers about fees in your shop policies can prevent confusion and build trust.

Including this fee in your planning helps you know the real cost of selling on Etsy and ensures you maintain healthy profit margins.

8. VAT and Sales Tax

When selling on Etsy, you may need to pay VAT (Value Added Tax) or sales tax, depending on your country. These taxes are added to your fees and can affect your profits.

VAT (Value Added Tax)

• Applies mainly in the European Union and some other countries.
• Etsy charges VAT on the total price of the item, including shipping and gift wrapping, if applicable.
• If you use Etsy Payments, VAT is automatically calculated and collected. You’ll get a monthly invoice showing how much VAT was charged.
• Example: If you sell an item in the UK for £20, Etsy will include the VAT percentage in the fees.

Sales Tax (for the U.S.)

• Etsy automatically collects sales tax for most U.S. states.
• The tax is added to the customer’s total, and Etsy remits it to the state authorities on your behalf.
• You can also choose to handle sales tax yourself, but Etsy makes it easier by managing it automatically.

Why it matters:

• Always check your local tax laws to ensure you comply.
• Factor these taxes into your product pricing so you don’t lose money.
• Staying transparent with buyers about taxes can improve trust and avoid confusion.

By understanding VAT and sales tax, you’ll know the true cost of selling on Etsy and be better prepared to manage your profits.

9. Optional Etsy Subscriptions

Etsy also offers optional subscriptions that give you extra tools and features to help grow your shop. These are not required, but they can be useful if you want more control, customization, and marketing options.

1. Etsy Plus ($10/month)

Etsy Plus is a paid upgrade that provides additional benefits for sellers, such as:

• Monthly Etsy Ads credits to promote your listings.
• Discounts on custom web addresses and promotional materials like business cards or thank-you cards.
• Advanced shop customization options to make your storefront look more professional and unique.

Etsy Plus helps you improve your shop branding and attract more buyers, but it doesn’t directly change your search ranking on Etsy.

2. Pattern ($15/month)

Pattern is Etsy’s website-building service that lets you create a standalone online store using your Etsy listings. With Pattern, you get:

• A custom website separate from Etsy’s marketplace.
• Full control over branding like colors, layouts, and fonts.
• Optional domain name registration and privacy protection.

Pattern is great if you want a website that’s fully under your control. However, unlike Etsy’s marketplace, you need to drive traffic yourself using social media, SEO, or other marketing efforts.

Tip: Optional subscriptions are best for sellers looking to grow and scale their Etsy shop. If you’re just starting, you can stick with the free Etsy Standard plan and upgrade later when needed.

10. In-Person Selling Fees

Did you know you can sell your Etsy products in person, like at craft fairs, markets, or pop-up shops? Etsy allows this through Square integration, so your in-person sales can sync with your Etsy shop.

Here’s what you need to know about the fees:

• Listing Fee: $0.20 per item, just like online listings.
• Transaction Fee: If you use Square, you can reduce or avoid Etsy’s 6.5% transaction and payment processing fees for small in-person sales.
• Payment Processing: Square handles the payment, often with lower fees than online Etsy Payments.
• Benefits: Your in-person sales still count in your Etsy shop stats, keeping your inventory and reports up to date.

This is a great way to expand your sales beyond Etsy’s online marketplace while keeping your fees manageable.

Methods to Offset Etsy Fees

While it’s crucial to understand the costs associated with selling on Etsy, there are several strategies you can employ to help offset these fees and improve your overall profitability.

1. Pricing Strategies

One of the simplest ways to manage costs is through effective pricing strategies. Consider raising your product prices slightly to accommodate the various fees you’ll incur. However, be cautious; it’s essential to remain competitive in your niche. Research similar products to find a balance that covers your expenses while still attracting buyers.

2. Offering Free Shipping

Many buyers are drawn to listings that offer free shipping, so consider incorporating shipping costs into your product price. While this approach may seem counterintuitive at first, it can help attract more customers and potentially increase sales volume, which can ultimately offset the fees you incur.

3. Bundling Products

Another effective method is to bundle products together. For example, if you sell digital planners, consider offering a bundle that includes several planners at a discounted rate. This approach not only adds value for your customers but also maximizes your revenue from each sale, helping you cover fees more efficiently.

4. Utilizing Etsy’s Promotions

Etsy regularly offers promotional tools, such as sales events and coupons. Taking advantage of these promotions can boost your visibility and attract more customers, leading to increased sales. Increased sales can help dilute the impact of fees on your overall revenue.

5. Cross-Selling and Upselling

Consider using cross-selling and upselling techniques. If a customer purchases one item, recommend related products that complement their choice. This strategy can significantly increase your average order value and help cover the costs associated with selling on Etsy.

Example: How much does Etsy take from a $100 sale?

• Listing Fee: $0.20
• Transaction Fee (6.5%): $6.50
• Payment Processing Fee (3% + $0.25): $3.25
• Currency Conversion Fee (if applicable): $2.50
• Total Fees: ~$12.45
• Profit: $87.55 (before material/shipping costs)

Etsy vs Shopify: Cost Comparison (2026)

Cost Breakdown	Etsy	Shopify (Basic Plan)
Item Cost (10 items)	$15.00 × 10	$15.00 × 10
Listing Fee	$0.20 × 10 = $2.00	–
Transaction Fee	$15 × 10 × 6.5% = $9.75	–
Payment Processing	~$7.00 (3% + $0.25 × 10)	~$7.35 (2.9% + $0.30 × 10)
Subscription Fee	–	$29.00
Total Monthly Fees	$18.75	$36.35

Etsy is ideal for small sellers, while Shopify may be better for high-volume shops.

Final Thoughts

Selling on Etsy is a fantastic way to reach buyers and turn your creativity into profit. But understanding all the fees—listing, transaction, payment processing, currency conversion, regulatory fees, and optional subscriptions—is essential.

By pricing smartly, using promotions, and following strategies to offset fees, you can maintain good profit margins and grow your Etsy shop successfully in 2026.

Frequently Asked Questions

1. How much does Etsy take from a $100 sale?

For a $100 sale, Etsy takes a few different fees:

• Transaction Fee: 6.5% of the sale, so that’s $6.50.
• Payment Processing Fee: Usually around $3.25 (this can change depending on where you live).
• Listing Fee: Etsy also charges $0.20 for each item you sell.

In total, Etsy would take about $9.95 from a $100 sale.

2. Does Etsy take 30%?

No, Etsy doesn’t take 30%. They charge a 6.5% fee on each sale, plus some extra fees for payment processing and listing your item. Altogether, it’s usually much less than 30%.

3. Does Etsy have a monthly fee?

Etsy doesn’t charge a monthly fee just to sell on their platform. However, if you sign up for Etsy Plus, which gives you extra features, that costs $10 per month. Otherwise, you just pay fees when you sell an item.

4. Does Etsy charge a listing fee for every sale?

Yes, Etsy charges a $0.20 listing fee for every item you sell, even if it’s the same item that sold before. This fee happens every time you make a sale.

5. What is a good profit margin for Etsy?

A good profit margin on Etsy can depend on what you’re selling, but most sellers aim for around 30% to 50%. This means, after all your costs (like materials, Etsy fees, and shipping), you should still be making about 30-50% profit.