Etsy Seller Fees Explained: The True Cost of Selling

These figures apply to Etsy United States (etsy.com). Other country shops use different payment-processing rates.

Etsy’s fee structure looks simple until you get your first payment account statement. The listing fee is $0.20. The transaction fee is 6.5 percent. The payment processing fee is 3 percent plus $0.25. Add Offsite Ads and the total can reach 26 percent of your sale price before you factor in the cost of materials, time, or shipping.

Most sellers know about the transaction fee. Far fewer understand that Etsy charges the 6.5 percent transaction fee on shipping costs not just the item price. That single detail changes every pricing calculation.

This article breaks down every Etsy seller fee in 2026 with real dollar examples so you know exactly what you are paying on every order.

The Listing Fee – $0.20 Per Item

Every time you publish a new listing on Etsy you pay $0.20. Listings are active for four months or until the item sells. When a listing expires after four months Etsy automatically renews it for another $0.20 unless you turn off auto-renew in your shop settings.

The listing fee catches multi-quantity sellers off guard. If you list 10 identical mugs in a single listing you pay $0.20 once upfront. But each time one mug sells Etsy charges another $0.20 renewal fee to keep the remaining inventory live. A seller who sells 50 units of the same item pays $10.00 in listing renewal fees alone on top of all other fees.

Digital download sellers pay $0.20 per sale even though no physical item is involved and the listing never expires in the traditional sense. The renewal fee applies on each download purchase.

For sellers with large catalogs the listing fee compounds. A shop with 200 active listings that all expire in the same month faces a $40 renewal charge regardless of sales during that period. Managing listing expiry dates to spread renewals across months reduces cash flow impact.

The Transaction Fee – 6.5% on Everything Including Shipping

The transaction fee is Etsy’s largest fee at 6.5 percent. It applies to the total amount the buyer pays which includes the item price, the shipping cost you charge, and any gift wrapping charge. It does not apply to sales tax collected in the US.

This is the fee most sellers calculate incorrectly. A seller who prices a $25 item with $5 shipping calculates their transaction fee as 6.5 percent of $25 which equals $1.63. The actual transaction fee is 6.5 percent of $30 which equals $1.95. That $0.32 difference per order adds up at volume.

The practical implication: offering free shipping and building shipping cost into your item price does not reduce the transaction fee. Etsy charges 6.5 percent on the total amount regardless of how shipping is structured. A $30 item with free shipping and a $25 item with $5 shipping both incur a $1.95 transaction fee.

The transaction fee increased from 5 percent to 6.5 percent in April 2022 and has remained at 6.5 percent through 2026. It applies to every sale at every seller level with no volume discount or seller tier reduction.

The Payment Processing Fee – 3% Plus $0.25

Etsy Payments is mandatory in most countries. When a buyer pays through Etsy Payments the payment processing fee is charged on the total amount received from the buyer including the item price and shipping. In the US the fee is 3 percent plus $0.25 per transaction.

Payment processing fees vary by country:
US: 3% plus $0.25
UK: 4% plus £0.20
Australia: 3% plus A$0.25
Canada: 3% plus C$0.25
Other countries: check Etsy’s fee schedule for your specific market

Note: the payment processing fee applies to the total transaction amount but unlike the transaction fee it does not apply to sales tax collected. In the US this means the fee base for processing is item price plus shipping but excludes any tax Etsy collects on your behalf.

On a $30 sale (item $25 plus shipping $5):
Transaction fee: 6.5% of $30 = $1.95
Payment processing fee: 3% of $30 plus $0.25 = $0.90 plus $0.25 = $1.15
Listing fee: $0.20
Total mandatory fees: $3.30 or 11 percent of the total sale

The Offsite Ads Fee – 12% or 15%

Offsite Ads is Etsy’s external advertising program. Etsy places your listings on Google, Facebook, Instagram, Pinterest, and Bing. When a buyer clicks one of these ads and purchases from your shop within 30 days Etsy charges an Offsite Ads fee on that sale.

The fee rate depends on your annual sales:

Sellers earning under $10,000 in the trailing 12 months: 15% Offsite Ads fee. This is optional. You can opt out in your Shop Manager under Marketing then Offsite Ads.

Sellers earning over $10,000 in the trailing 12 months: 12% Offsite Ads fee. This is mandatory. You cannot opt out once you cross the $10,000 threshold.

The Offsite Ads fee applies to the full order value including shipping and gift wrapping. It does not apply to sales tax.

On a $25 sale that originates from an Offsite Ad the total fees are:
Listing fee: $0.20
Transaction fee: 6.5% of $25 = $1.63
Payment processing: 3% of $25 plus $0.25 = $1.00
Offsite Ads fee: 15% of $25 = $3.75
Total: $6.58 or 26.3% of your sale price

This is where the fee structure becomes genuinely punishing for low-margin products. A handmade item priced at $25 with $10 in materials cost and $3 in time leaves $12 gross margin before fees. An Offsite Ads sale wipes out more than half that margin.

The decision to opt out of Offsite Ads depends entirely on whether the additional traffic Etsy generates converts better or worse than your existing organic traffic. Sellers with high average order values and strong margins often find Offsite Ads profitable even at 15 percent. Sellers with low-priced items and tight margins should calculate their break-even point before staying enrolled.

The Etsy Plus Subscription – $10 Per Month

Etsy Plus is an optional subscription at $10 per month. It includes monthly credits for listings and Etsy Ads and access to additional shop customization features including custom web address options and restock notifications for buyers.

The subscription includes:
15 listing credits per month ($3 value at $0.20 each)
$5 in Etsy Ads credits per month
Customizable shop features
Custom web address discounts through Hover

The $10 monthly fee makes sense only if you actively use the included credits. The listing credits cover 15 renewals per month. The Etsy Ads credits provide minimal ad coverage at $5 per month. For sellers with large active catalogs who advertise regularly Etsy Plus can provide marginal value. For most sellers the standard no-subscription model is sufficient.

The Shipping Fee Trap Most Sellers Miss

Shipping is where Etsy sellers consistently underestimate their total fee burden.

The 6.5 percent transaction fee applies to whatever shipping amount you charge the buyer. A seller charging $5 shipping pays $0.33 in transaction fees on that $5. A seller charging $8 shipping pays $0.52 in transaction fees on the shipping alone.

The payment processing fee also applies to the shipping amount. On $5 shipping the processing fee contribution is 3 percent of $5 plus a portion of the $0.25 flat fee. The combined impact of transaction and processing fees on a $5 shipping charge is approximately $0.45 to $0.50.

This means the actual cost to you for the $5 shipping label is higher than $5 once you factor in the Etsy fees on that shipping charge.

The mitigation: use a shipping platform that gives you the lowest possible label cost so the base shipping fee you charge is as small as possible. Platforms like EasyShip, Shippo, and ShipStation provide discounted USPS, UPS, and FedEx rates that are 30 to 70 percent below retail. A seller paying $3.80 for a label instead of $5.50 at the post office reduces their shipping charge to buyers which reduces the Etsy fee base on that shipping amount.

To check which carrier is cheapest for your specific package size and destination use the free Carrier Savings Engine which compares USPS, UPS, FedEx, and USPS Cubic using verified 2026 rates. To check the DIM weight on your package before buying a label use the DIM Weight Calculator.

The Real Effective Fee Rate

The headline 6.5 percent transaction fee understates what Etsy actually takes on most sales. The true effective fee rate depends on your price point, shipping charge, and whether Offsite Ads apply.

Standard sale with no Offsite Ads: approximately 10 to 12 percent of total sale price.
Sale through Offsite Ads at 15 percent: approximately 24 to 28 percent of total sale price.
Sale through Offsite Ads at 12 percent: approximately 21 to 25 percent of total sale price.

The effective rate is highest on low-priced items because the $0.25 flat processing fee and $0.20 listing renewal fee represent a higher percentage of a $10 sale than a $50 sale.

On a $10 sale with $4 shipping and no Offsite Ads:
Listing fee: $0.20
Transaction fee: 6.5% of $14 = $0.91
Payment processing: 3% of $14 plus $0.25 = $0.67
Total fees: $1.78 or 12.7% of the $14 collected

On a $50 sale with $6 shipping and no Offsite Ads:
Listing fee: $0.20
Transaction fee: 6.5% of $56 = $3.64
Payment processing: 3% of $56 plus $0.25 = $1.93
Total fees: $5.77 or 10.3% of the $56 collected

The effective fee rate drops as your average order value increases. Sellers who bundle items into multi-piece sets or higher-value offerings pay fewer flat fees per dollar of revenue.

Selling on multiple platforms? See how Depop compares to Etsy on fees at the Depop Fees guide.

FAQ

Q: How much does Etsy take from a sale in 2026?
A: Etsy takes approximately 10 to 12 percent of each sale for standard orders with no advertising. This includes the $0.20 listing fee, 6.5 percent transaction fee on the total order amount including shipping, and the 3 percent plus $0.25 payment processing fee. If the sale came through an Offsite Ad Etsy charges an additional 15 percent for sellers under $10,000 annual revenue or 12 percent for sellers over $10,000 annual revenue. A sale through Offsite Ads can result in Etsy taking 24 to 28 percent of the total order amount.

Q: Does Etsy charge fees on shipping?
A: Yes. Etsy’s 6.5 percent transaction fee applies to the total amount the buyer pays including the shipping cost you charge. Etsy’s 3 percent plus $0.25 payment processing fee also applies to the shipping amount. This means the combined Etsy fees on a $5 shipping charge add approximately $0.45 to $0.50 in fees on top of your label cost. Offering free shipping and building shipping into your item price does not reduce your total fee burden. Etsy charges 6.5 percent on the combined total regardless of how it is structured.

Q: Can I avoid Etsy Offsite Ads fees?
A: Sellers earning under $10,000 in the trailing 12 months can opt out of Offsite Ads in Shop Manager under Marketing then Offsite Ads. Sellers earning over $10,000 annually cannot opt out. The fee is mandatory at 12 percent of each order that comes through an external Etsy ad. The 30-day attribution window means a buyer who clicks an Etsy ad and purchases up to 30 days later triggers the fee even if they navigated directly to your shop for the final purchase.

Q: What is the difference between Etsy transaction fee and payment processing fee?
A: The transaction fee is 6.5 percent and goes to Etsy as a marketplace commission on every sale. The payment processing fee is 3 percent plus $0.25 and covers the cost of processing the payment through Etsy Payments. Both apply to the item price and shipping amount. The transaction fee does not apply to sales tax in the US. The payment processing fee also does not apply to tax in the US. Both fees are deducted automatically before Etsy deposits your earnings.

RATES VERIFIED STAMP:

Rates verified August 2026. Etsy listing fee $0.20, transaction fee 6.5%, and payment processing fee 3% plus $0.25 confirmed from Etsy’s official Fees and Payments Policy at etsy.com/legal/fees. Offsite Ads fee rates of 15% under $10,000 and 12% over $10,000 confirmed from Etsy Seller Handbook. Etsy Plus subscription $10 per month confirmed. Fees unchanged from 2022 through August 2026. See changelog.