Etsy fees explained: what Etsy actually takes from each sale

Updated October 27, 2026 · SellerSheetKit Guides

Etsy looks cheap to start: twenty cents to list an item. But by the time an order is paid out, several separate fees have come off the top, and some of them apply to shipping and sales tax too. If you price by gut feel, it is easy to discover months later that your best seller barely breaks even. This guide walks through each fee a typical US seller pays in 2026, shows the math on a real-looking order, and gives you a simple way to price so fees never surprise you.

Rates below are from Etsy's own Fees & Payments Policy and the Payment Processing Fees help article, checked October 2026. Etsy changes fees from time to time — always confirm against your own Payment account.

1. Listing fee: $0.20 per listing

Every item you publish costs $0.20 USD, whether it sells or not. Listings expire after four months, and if auto-renew is on, Etsy charges another $0.20 to renew. There is one more catch that trips up new sellers: if a listing has a quantity greater than one, Etsy automatically renews it for $0.20 each time one unit sells. So a listing that sells 50 units costs you $10 in listing fees over its life, not $0.20.

For most products the listing fee is small, but it matters a lot on cheap digital downloads and low-priced items. On a $3 sticker, $0.20 is almost 7% of revenue on its own.

2. Transaction fee: 6.5% of the order, including shipping

When an item sells, Etsy charges a 6.5% transaction fee on the price you display plus whatever you charge for shipping and gift wrap. US sellers are not charged the transaction fee on sales tax. This is the fee people underestimate most, because many sellers assume it only applies to the item price. If you charge $6 for shipping, Etsy takes $0.39 of that too.

Personalization surcharges count as part of the listing price, so they are subject to the same 6.5%.

3. Payment processing: 3% + $0.25 (US)

Orders paid through Etsy Payments carry a processing fee that depends on where your bank account is. For a US bank account it is 3% of the total sale plus $0.25 per order. Unlike the transaction fee, this one is calculated on the full amount the buyer paid — item, shipping, and sales tax. Sellers in other countries pay different rates (for example 4% + £0.20 in the UK and 4% + €0.30 in most of the EU), so check the table in Etsy's help article for your country.

If you refund an order, Etsy credits the processing fee back proportionally. The listing fee is not refunded.

4. Offsite Ads: 12% or 15% when they drive a sale

Etsy advertises listings on Google, social media, and other sites. If a buyer clicks one of those ads and buys from you within 30 days, you pay an Offsite Ads fee:

15% of the order total if your shop made under $10,000 in the prior 365 days (you can opt out).
12% if you made $10,000 or more in the prior 365 days (participation is required).

The fee is capped at $100 per order. Because it only hits some orders, sellers often forget it when pricing. If 10% of your orders come through Offsite Ads at 15%, that averages out to roughly 1.5% of revenue — worth building into your numbers.

5. Other fees you might see

Etsy Ads (on-site ads): a daily budget you set, charged per click.
Shipping labels bought through Etsy.
Currency conversion if you list in a currency different from your payment account.
Regulatory operating fee in some countries (e.g. UK, France, Italy, Spain, Turkey) — a small percentage on top.
Shop setup fee: a one-time fee charged to new sellers in some regions.

Worked example: a $28 candle with $6 shipping

Say you sell a candle for $28.00, charge $6.00 shipping, and the buyer pays $2.04 in sales tax (6% on the item). Total paid by the buyer: $36.04.

Fee	Calculation	Amount
Listing (renewal on sale)	flat	$0.20
Transaction fee	6.5% × ($28 + $6)	$2.21
Payment processing	3% × $36.04 + $0.25	$1.33
Total Etsy fees		$3.74

That is about 11% of the $34 you collected for item and shipping. If this order also came from an Offsite Ad at 15%, add another $5.41 (15% of $36.04) and total fees jump to $9.15 — roughly 27%.

Now subtract your real costs. If the candle costs $7.50 to make (wax, wick, jar, label, box) and the label costs you $5.40 to ship, your profit on a normal order is $34.00 − $3.74 − $7.50 − $5.40 = $17.36. On an Offsite Ads order it is $11.95. Same product, very different margin.

A quick pricing rule of thumb

For a US seller not counting Offsite Ads, Etsy's percentage fees add up to roughly 9.5% of the order plus about $0.45 fixed per order. To find the minimum price that hits a target profit:

Price ≈ (cost + shipping cost + target profit + $0.45) ÷ (1 − 0.095)

That formula is an approximation — sales tax slightly increases processing fees, and ads change everything — but it gets you in the right neighborhood fast. If you rely on Offsite Ads, use a blended rate: add your share of ad orders times 12% or 15% to the 9.5%.

How to keep Etsy fees under control

Know your true unit cost. Fees are only half the picture. See our guide on how to calculate COGS.
Bundle low-price items. The $0.20 listing renewal and $0.25 processing fee hurt small orders most. Sets and multi-packs spread them out.
Price shipping honestly. Because 6.5% applies to shipping, "free shipping" baked into the price costs the same fee as charged shipping — choose whichever converts better.
Track Offsite Ads orders separately. Your Payment account labels them; tally them monthly so you know your blended fee rate.
Reconcile monthly. Compare your expected fees with your Etsy statement. Differences usually mean a fee you forgot.

Selling on more than one platform? Compare with our breakdowns of Shopify profit margins and Amazon FBA fees.

More seller guides

SellerSheetKit is not affiliated with Etsy, Shopify, or Amazon. Fee figures are summarized from official sources on the date above and can change; verify against your seller account. Educational content only — not tax, legal, or accounting advice.