The Etsy Fee Tree
Etsy is a powerhouse for traffic, but their fees are like a "death by a thousand cuts" if you aren't careful. It's not just one fee; it's four separate layers.
- Listing Fee: $0.20 flat. Charged when you publish AND when you sell (renewal).
- Transaction Fee: 6.5% of everything (Price + Shipping).
- Payment Processing: 3% + $0.25 (USA). Charged on the Gross (Price + Ship + Tax).
- Offsite Ads (The Kicker): 15% extra if you are new. 12% if you're big.
Offsite ads are Etsy buying Google/Facebook ads for your products. Great, right?
The Catch: They take 15% of the sale if it converts.
The Trap: If your profit margin is only 15% (common in POD), an Offsite
Ad sale results in break-even or loss.
Pro Tip: You can opt-out in your dashboard Settings > Offsite Ads, ONLY if you have made
less than $10k in the last year.
Etsy FAQ
No. If your item doesn't sell in 4 months, you paid $0.20 for the exposure. If it does sell, you pay another $0.20 to "renew" it for the next buyer.
The 6.5% Transaction fee NO (usually). The Payment Processing fee (3% + $0.25) YES. Banks charge to process the total money moved, which includes the tax money.