How Much Does It Cost to Sell Products on Etsy?

You've finally decided to sell your handmade cat sweaters or vintage spoon collection on Etsy.

Good for you.

But before you start dreaming about all the money you will make… let's talk about how much it's actually going to cost you.

Because Etsy isn't just an online yard sale where you keep all the money.

No, they've got fees. Lots of them.

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YOUR FIRST FEE
The "Welcome to Etsy" Fee

Etsy wants a little something just to let you join their exclusive club. There's a one-time $15 fee to open your shop.

Think of it as the cover charge to a party where you're the one doing all the work. But hey, at least you get to pick a fun shop name.

LISTING FEES
Listing Fees: Because Nothing in Life Is Free

Every time you want to list an item for sale, Etsy charges you $0.20 per listing. Yes, even if that item doesn't sell, you're still out twenty cents.

It’s like renting a tiny, digital shelf for your stuff. And if you’re thinking, "I’ll just list a hundred items to attract more buyers!", then you’re now $20 poorer.

And listings expire after four months. So if your crocheted llama hats don’t find a home by then, you’ll need to pay another $0.20 to relist them.

I forget this… there is another $0.20 for every time you sell a product. Yes, it is a renewal fee for a sold listing.

Rinse, repeat, cry.

TRANSACTIONS
Transaction Fees: Etsy's Cut of Your Pie

Sold something? 👍

But don’t start spending that money just yet.

Etsy takes a 6.5% transaction fee on the total price – and yes, that includes shipping costs.

So if you sell a $20 necklace with $5 shipping, Etsy pockets $1.63. It's like a tip you didn't agree to.

PAYMENT
Payment Processing Fees: The Invisible Hand Taking More Money

If you're using Etsy Payments (and most sellers are), there's a payment processing fee.

In the U.S., that's 3% of the total sale plus a $0.25 flat fee.

So, for that $20 necklace with $5 shipping, you're now coughing up another $0.90. Combine that with the transaction fee, and Etsy's taken $2.53 from your $25 sale.

These fees vary by country, so if you're selling internationally, be prepared for some extra surprises.

Because who doesn’t love unexpected fees?

SHIPPING
Shipping Fees: You’re Not Done Yet

If you print your shipping labels through Etsy (because of convenience), they’ll charge you for that too. Prices depend on the carrier and destination, but trust me, your wallet will notice.

Also, if you offer "free shipping" to attract more buyers, remember that "free" actually means "you’re paying for it."

Etsy loves to promote shops with free shipping, but unless you’re a magician, that cost is coming out of your profits.

OTHER FEES
Currency Conversion Fees: Because Why Not?

Selling to international customers? Etsy slaps on a 2.5% currency conversion fee if the buyer pays in a different currency than your shop’s default. So, your global success story comes with a side of extra charges.

Offsite Ads Fee: Surprise!

Here's where Etsy really keeps you on your toes.

They run Offsite Ads to promote your products on platforms like Google and Facebook. If someone clicks on one of these ads and buys something from your shop, Etsy charges you a 15% advertising fee.

But hey, if you made less than $10,000 in the last 12 months, you can opt out of this. Made more?

You’re automatically enrolled in Etsy Offsite Ads and can’t escape. Etsy's marketing your stuff whether you like it or not, —and charging you for it (but only 12% now).

Etsy Plus Subscription: Because You Need More Fees

You can also subscribe to Etsy Plus for $10 a month. It gives you perks like custom shop layouts, discounts on shipping supplies, and advanced shop stats.

Basically, it’s Etsy’s way of saying, "Pay us more for things we should probably include anyway."

IN ACTION
Quick Math: Where Did My Money Go?

Let’s break down a simple sale. For this example, I will use this free Etsy Fee Calculator.

You sell a $20 handmade mug with $5 shipping.

• Listing Fee: $0.20

• Transaction Fee (6.5% of $25): $1.63

• Payment Processing Fee (3% of $25 + $0.25): $1

Total fees? $2.83.

So, from that $25 sale, you're left with $22.18.

And that’s before you factor in the cost of materials, shipping, and your time. Suddenly, that side hustle isn't looking like a gold mine?

Despite all the fees, many people still find success on Etsy.

I’m one of them.

It’s a huge marketplace with millions of buyers, which means your products have a good chance of getting noticed.

But it’s important to price your items smartly, keeping these fees in mind, so you’re not working for pennies.

Have a wonderful and productive day,

Miroslav from The Design Nexus

TOOLS YOU SHOULD TRY

Even if you sell products other than mugs or t-shirts, it doesn't mean it will cost you more.

There are tools that can help you with the tasks, and most of them have free versions.

• Research: Alura

• Graphic Designs: Creative Fabrica

• Design Editing: Canva, Kittl

• Vectorizing: Vectorizer AI

• POD Fulfillment: Printful, Printify

Disclaimer: Within the article, you will find affiliate links. If you decide to purchase through these links, I want to sincerely assure you that I will receive a commission at no extra cost to you.