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In December 2022, Etsy put a new fee and payment policy into practice, changing how ecommerce brands selling on the marketplace pay for the platform’s services.
So, after the update, how much does Etsy take per sale in 2023? Below, we'll walk through the fees associated with selling on Etsy. We'll also talk about how Wise Business can save you money while getting paid on Etsy.
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Type of fee¹ | How much is it? | Example | Can it be avoided? |
---|---|---|---|
Listing fee | $0.20 per item | $50 item = $0.20 listing fee | No |
Transaction Fees | 6.5% of full sale price (including gift wrapping and delivery) | $50 item + $10 shipping = $3.90 transaction fee | No |
In-Person Selling Fee | $0.20 per transaction + Square fees | $50 sale = $0.20 Etsy fee + $1.40 Square fee | No |
Currency Conversion Fee | 2.5% | $50 conversion = $1.25 fee | No, but Wise can help |
Regulatory Operating Fee (ROF) | Variable | £50 sale = £1.25 ROF | Yes, depending on region |
Value-Added Tax (VAT) | Variable | VAT calculator | Yes, depending on region |
Pattern Fee | $15 per month | N/A | Yes |
Etsy Ad Fees | Variable | N/A | Yes |
Offsite Ads | 15% (12% for stores with >$10,000 in annual sales | $50 sale = $7.50 offsite ad fee | Only for small stores |
Etsy Payments Fee | Variable (3% + $0.25) | $50 sale = $1.75 payment fee | No |
Still looking for more answers? You'll find a more detailed look at Etsy fees below. This list also includes optional fees you might undertake after starting to sell on the popular marketplace.
Find a complete list of fees below with further details
To answer the question of “what are Etsy fees,” we have to start with the basics. For every item on Etsy, sellers are charged a listing fee. This is a one-time charge that occurs when you add an item to your store.
What is it?
This fee is charged when you list an item and it is non-refundable, regardless of whether the item sells or not. It covers the cost of hosting your listings on the Etsy platform.
How much is it?
The cost of this listing fee is $0.20 per item listed regardless of the duration it's listed for (up to 4 months). That means if you list 10 items in your shop, you’ll be charged $2 for the listing fees alone.
While the listing fee is paid upfront, the transaction fee is only charged when your items actually sell.
What is it?
This fee covers the cost of processing payments made by customers through Etsy’s payment system. It is how the company generates the majority of revenue and is taken directly from the sale price of each item.
How much is it?
Etsy's transaction fee is 6.5% of the total sale price, including shipping and gift-wrap charges. That means if you sell an item for $100, you’ll be charged a transaction fee of $6.50.
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Though the majority of Etsy sales happen online, they also offer integration with Square, which allows you to accept payments in person. This is perfect for store owners that have physical locations or attend craft fairs.
What is it?
If you sync your Etsy store items with Square, the charge is the same $0.20 listing charge applied above. For any non-synced items, a $0.20 transaction fee will be added, listed as a "Square manual" fee².
How much is it?
Luckily, these in-person sales are not subject to the 6.5% transaction fee that Etsy uses for online sales. That said, you will be forced to pay the related Square fees, which depend on what kind of payment method you want to use.
For basic methods like magstripe cards or contactless (tap) payments, Square will charge $0.10 plus a 2.6% fee per transaction.
Etsy recommends that you list items in the same currency that you receive payment in. However, if you choose to list items in a different currency than the one you use for payments, you will face an additional fee.
What is it?
Because they are not a currency exchange platform, Etsy will charge a fee when you list items in a currency other than the one used for payment. This is to cover the cost of converting currencies during transactions.
How much is it?
The basic fee is 2.5%, but you may also face poor exchange rates given they determine it on the current market. By connecting a solution like Wise, you can pay lower fees and take advantage of mid-market exchange rates.
Depending on where you are selling from, you may be charged an additional fee called a Regulatory Operating Fee (ROF)³.
What is it?
This covers the cost of Etsy's continued service in a certain area, such as compliance with local regulations. Applied as a transaction fee, it is only charged when a product sells and is calculated as a percentage of the total sale price, including shipping and gift-wrap charges.
How much is it?
The fee varies depending on which country you are doing business in.
These fees will also be subject to a value-added tax (VAT) where applicable.
Sometimes known as Goods and Services Tax (GST) or Harmonized Sales Tax (HST), a VAT is a tax charged by the local government on certain goods and services. Because these vary wildly around the world, there is no Etsy-specific rate that can be listed.
Generally, the platform will collect and remit these taxes automatically, so you won’t have to worry about it.
So how much does Etsy take out per sale? While the seller fees listed above will be included in almost every transaction, there are a few optional Etsy fees in 2023 that you may encounter depending on your business model.
Not every business will have the resources to make their own website, so Etsy provides a service called Pattern. You can choose from a range of templates and create a fully functioning website for your business. However, this service is not free.
What is it?
Instead of being based on a per-transaction scale, the Pattern fee is a subscription-based service that will continue until you cancel it. Etsy also partners with Tucows for domain registration, which is an additional cost.
How much is it?
After a 30-day free trial, the Pattern subscription is $15 per month. It is automatically renewed and subject to additional VAT charges depending on your country.
Etsy offers a paid advertising service that can help to drive more traffic and sales to your shop. This is an optional service, and you can choose how much you want to spend.
By pushing your products to the top of relevant search results, Etsy Ads can help you reach more potential customers. The native advertising system is tailored to your budget, so you can choose how much you want to spend.
How does it work?
Like most online advertising platforms, Etsy Ads charges on a cost-per-click (CPC) basis. This means that you’ll be charged a certain amount every time someone clicks through your ad and visits your listing page. The exact amount you pay will depend on the competitiveness of the keyword or phrase used.
How much is it?
You can set a minimum and maximum threshold for your daily ad budget. The default minimum is $1.00 and the maximum is determined by your seller history. Starting at $25.00, that daily maximum can be increased by paying balances on time and increasing your shop’s sales. It is recalculated weekly⁴.
Alternatively, you can also be part of an offsite ad program, in which Etsy purchases ad placements on external websites and apps. This can help you to reach a wider audience and get more exposure for your products.
What is it?
Instead of being assessed on a cost-per-click basis, this fee will only be charged if the ad directly results in a sale. The fee is calculated as a percentage of the sales price, and it varies depending on your shop’s performance.
How much is it?
Etsy offers a better rate to those stores that have a higher sales volume and better performance on the platform. The fee starts at 15% for every attributed order but will decrease to 12% for stores that have reached $10,000 in sales over the previous year.
This reduced price comes with a caveat though; you will no longer have the ability to opt-out once your store reaches that threshold.
That means you will automatically be included in the offsite ad program, and could potentially face those heavy Etsy seller fees for any sales that come in through that funnel. Store owners should be aware of this, and make sure they can handle the reduced margins on any added traffic.
The $10,000 threshold does not include in-person orders or any of the other separate fees.
One of the Etsy selling fees often overlooked is the Multi-Quantity Fee, which applies a charge to items that are listed in quantities of more than one. This fee is charged per item, and the amount varies depending on the quantity of each item being sold.
What is it?
This can be considered an additional listing fee, charged when a sale is made. It is meant to stop sellers from listing items in bulk to take advantage of the one-time listing fee.
How much is it?
The fee is an additional $0.20 per item. Let's look at an example to make it clear. A store creates a listing and includes a quantity of 10 items. They are all sold within a week. The seller would be charged $0.20 for the original listing, plus an additional $0.20 for each of the other nine transactions, adding $1.80.
If only some of the items are sold by the end of the fourth-month listing period, it will be automatically renewed for $0.20 with the remaining quantity.
Etsy listing fees only cover four months, and by default will be automatically renewed. This can be toggled in the listings manager, to allow for manual review of each listing as it expires.
What is it?
This fee is charged when a listing is automatically renewed and covers the cost of keeping the item listed in your shop for another four months.
How much is it?
If left activated, auto-renewal will charge $0.20 per listing every four months.
For some regions, Etsy offers a service that allows you to print shipping labels directly from your shop. This is a convenient option if you want to offer free or flat-rate shipping and need the ability to create labels quickly.
What is it?
This service is only available to those that use Etsy Payments or PayPal as a payment method and is only applicable to sellers in the United States, Canada, United Kingdom, Australia, and India.
The available delivery services are USPS, FedEx, Canada Post, Royal Mail, Australia Post, Global Post, Shiprocket, and Yakit. You can also purchase parcel insurance or print return labels.
How much is it?
This fee depends on several factors, including origin, destination, weight, mail class, and dimensions of the item, meaning the fee can vary. Sellers should research their specific shipping fees before using this service⁵.
Custom listings offer sellers a way to offer made-to-order services. They can be created with a specific customer in mind, offering a unique way to provide personalized products.
What is it?
The important distinction between private and public is that the listing fee is only applied when a custom listing is actually sold. There is no fee to set up a private listing.
How much is it?
Just like a regular listing, it costs $0.20 for a custom one.
Etsy Payments is the native payment processor for the Etsy marketplace. To use it, sellers must pay an additional fee that varies based on where a seller's bank is located.
What is it?
This fee allows a seller to accept several payment methods, including credit cards, debit cards, Apple Pay, Google Pay, and more.
How much is it?
The fees depend on where your business account is located⁶. Some rates include:
VAT is also collected on processing fees where required.
Learn More about the Best Business Accounts for Etsy
When listing a product on Etsy, the seller also estimates shipping costs and includes them in the price for customers. While Etsy doesn't add an additional fee for shipping, it will include it in the 6.5% transaction fee.
For example, say you sell a handmade candle for $10 and you charge $2.50 for shipping. The 6.5% Etsy transaction fees will be calculated on the total cost of the item ($12.50) instead of just the price of the candle itself ($10).
This means that sellers need to carefully estimate their shipping costs to ensure that their margins are still profitable.
Similarly, any gift wrapping or personalization options you offer customers will also be included in the 6.5% transaction fee. These additional costs can quickly add up if not accounted for.
It is the responsibility of the seller to pay for all fees associated with running their shop. If they do not, Etsy can impose restrictions on the seller's account. For US sellers, Etsy has a feature called AutoBilling that automatically processes fees from a seller’s bank account or credit card⁷.
At the start of the month, Etsy will charge the fees associated with all sales from the previous month. This includes listing fees, transaction fees, and payment processing fees.
However, it also has built-in fee thresholds that will also trigger a payment. New sellers start with a $25.00 threshold, meaning if they rack up that amount in fees before the month is over, they will be charged.
Each time a threshold is met, Etsy will bump it up to a higher level, allowing you to accrue more fees before payment is processed. The fee thresholds are:
This will make sure that you don't accidentally rack up a large bill, as it will force you to pay off fees when they reach a certain level.
Remember these selling on Etsy fees are in addition to the cost of the platform itself. Etsy offers two pricing plans for sellers, Standard and Plus.
Etsy Standard Pricing Plan
This is the free option that we all know and love. It is what made Etsy so popular and accessible to small businesses. Under the standard plan, you have no monthly subscription, and can pay for tools like Etsy Ads and Pattern as you need them.
Etsy Plus Pricing Plan
Etsy Plus, on the other hand, is a monthly subscription that costs $10. There are a number of benefits that are offered with Plus:
For large operations, Etsy Plus is a no-brainer, given how inexpensive the monthly subscription is. Even if you don’t take advantage of any discounts, the listing and Etsy Ads almost pay for it themselves!
👉 Connect with Etsy and save on conversions
👉 Make low-cost payments to 160+ countries
👉 Hold money in up to 40+ currencies
👉 No hidden fees
With global marketplaces like Etsy, you can reach customers all over the world. The challenge is how to get paid and move money without bad rates.
The Wise Business account gives you local account details. You can sell in USD and get paid in USD. Then, use your Wise Business account to transfer between currencies at the mid-market exchange rate. Then, spend your hard-won earnings or make payments in USD or in over 160+ countries.
It could be a real money-saver for your Etsy shop!
Learn More:
Etsy and Paypal: How You Get Paid and Other Alternatives
Sources:
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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