The real cost of selling on Etsy is about 10% to 11% of an average sale before advertising, and closer to 26% when Offsite Ads drive the order.
That figure comes from stacking a $0.20 listing fee, a 6.5% transaction fee and a payment processing fee of 3% plus $0.25 for U.S. sellers, plus whatever you pay for shipping, materials and ads.
This guide breaks down every fee in Etsy’s current policy, shows worked examples with real numbers, flags costs sellers often miss, and gives you a simple formula for pricing so your profit survives the fees.
What Changed in 2026 (and What Didn’t)
Etsy’s core rates are the same as last year. Etsy’s Fees & Payments Policy, last updated on October 5, 2026, still lists a $0.20 listing fee, a 6.5% transaction fee and Offsite Ads fees of 15% or 12%.
Two things did move. A tracker that compares Etsy’s fee policy versions found that the October 2026 revision changed no rates and only moved the rules on avoiding fees into a separate Off-Platform Transactions policy.
The bigger change came on June 22, 2026, when Etsy raised its Regulatory Operating Fee in several countries, including France, Italy, Spain and the UK, and introduced it in Hungary.
That tracker (Growtsy) is a seller-tools company, so confirm those percentages on Etsy’s help page.
The Etsy Fees at a Glance (U.S. Sellers)
| Fee | Amount | When you pay it |
|---|---|---|
| Listing fee | $0.20 per listing | When you publish, then every four months, or after each sale of a multi-quantity item |
| Transaction fee | 6.5% of item price + shipping + gift wrap | On every sale |
| Payment processing | 3% + $0.25 | On every sale through Etsy Payments |
| Offsite Ads fee | 15% (or 12% after $10,000 in sales), capped at $100 per order | Only when an Offsite Ad leads to an order |
| Etsy Ads | Your daily budget | Pay-per-click, optional |
| Etsy Plus | $10 per month | Optional subscription |
| Currency conversion | 2.5% | When your listing currency differs from your payment account currency |
| Set-up fee | One-time, shown during onboarding | May apply when you open a shop |
Etsy lists all of these fees exclusive of any VAT or similar taxes, and says its service fees are non-refundable.
Fee by Fee: What You Actually Pay
Listing fee: $0.20
You pay $0.20 each time you publish or renew a listing, whether or not it sells. Listings expire after four months and auto-renew at $0.20 unless you switch renewals to manual.
If one listing has multiple quantities, it renews at $0.20 each time one sells. A shop with 100 active listings that never sell would pay about $60 a year in renewals.
Transaction fee: 6.5%
Etsy charges 6.5% of the price you display, plus what you charge for shipping and gift wrapping. For U.S. sellers, the fee does not apply to sales tax. If you charge extra for personalization, that amount is added to the displayed price and is also subject to the fee.
Payment processing: 3% + $0.25 in the U.S.
Etsy Payments fees depend on where your bank account is. According to Etsy’s Payments Policy (updated July 31, 2026), the rate is 3% + $0.25 for U.S. sellers, 4% + £0.20 for the UK, and 4% + €0.30 for most of the euro area.
Offsite Ads: 15% or 12%
Etsy buys ads on other sites and charges you only when someone clicks an ad and orders from your shop within 30 days. Your rate depends on your sales over the prior 365 days:
- Under $10,000: 15%, and you can opt out.
- $10,000 or more: 12%, and you cannot opt out. Etsy says that once you cross the threshold, you pay the 12% rate for the lifetime of your shop.
- Cap: The fee on a single order can’t exceed $100.
If a buyer’s last click before ordering was on an Etsy Ad, only the Etsy Ads fee applies.
Etsy Ads: pay-per-click
Etsy Ads put your listings higher in Etsy search. You set a daily maximum budget, and Etsy won’t charge you more than that in a day. There is no fixed percentage.
Optional extras
- Etsy Plus ($10 per month): Includes 15 listing credits (worth $3) and $5 in Etsy Ads credits each month. The credits expire if you don’t use them.
- Pattern ($15 per month): A personal website tool, after a 30-day free trial.
- Shipping labels: Prices depend on the carrier, weight, size and destination, plus any insurance or signature options you add.
- Instant Transfer (U.S.): A fee is displayed before you confirm a transfer. Funds typically arrive within 30 minutes.
Regulatory Operating Fee (select countries)
Sellers in some countries pay an extra percentage on the same base as the transaction fee, meaning item price plus shipping. According to Growtsy’s summary of Etsy’s announcement, the rates since June 22, 2026 are: France 1.14%, Hungary 1.97%, India 0.05%, Italy 0.80%, Spain 0.88%, Türkiye 1.67% and the UK 0.48%.
Taxes on fees
Etsy says that where applicable, sales tax is added to certain fees it charges, and VAT may be added to seller fees in some countries. These taxes are on top of the fees above.
Worked Examples: What Etsy Takes From a Sale
All examples use a U.S. seller and assume no sales tax. Shipping is charged to the buyer, so the fee base includes it.
| Scenario | Order total | Listing | Transaction (6.5%) | Processing (3% + $0.25) | Ads fee | Total fees | Share of order |
|---|---|---|---|---|---|---|---|
| $30 item + $5 shipping, no ads | $35.00 | $0.20 | $2.28 | $1.30 | $0 | $3.78 | 10.8% |
| Same order via Offsite Ads (15%) | $35.00 | $0.20 | $2.28 | $1.30 | $5.25 | $9.03 | 25.8% |
| Same order via Offsite Ads (12%) | $35.00 | $0.20 | $2.28 | $1.30 | $4.20 | $7.98 | 22.8% |
| $8 item, free shipping, no ads | $8.00 | $0.20 | $0.52 | $0.49 | $0 | $1.21 | 15.1% |
| $100 item + $10 shipping, no ads | $110.00 | $0.20 | $7.15 | $3.55 | $0 | $10.90 | 9.9% |
Low-priced items lose a bigger share because of the flat $0.25 and $0.20 charges.
What’s left after costs
Take the $35 order. Suppose materials cost $8, postage $5 and packaging $1:
- No ads: $35.00 − $3.78 in fees − $14.00 in costs = $17.22
- Offsite Ads at 15%: $35.00 − $9.03 − $14.00 = $11.97
The ad-driven sale earns about $5.25 less, which is why opting out of Offsite Ads (when you can) matters for thin margins.
Costs That Don’t Show Up on the Fee Page
Shipping and materials
Etsy’s fees apply to the shipping you charge, so offering “free shipping” and baking it into your price doesn’t avoid them. Postage, packaging and materials come out of your side of the ledger.
Refunds
Etsy says that when you refund a buyer, the payment processing fee is recalculated on the adjusted amount.
When Etsy covers a full refund through its protection program, the processing fee and other fees (including the transaction fee and Offsite Ads fee) are not credited back to the seller.
Payout reserves and delays
Etsy can place a reserve on your account, holding a percentage of your balance for a set period if it sees financial risk.
Its policy gives an illustrative example of 30% held for 45 days, and says variable reserves and deposit delays can run longer.
Risk factors include how long you’ve sold on Etsy, order backlogs and buyer case rates. This doesn’t add a fee, but it can strain cash flow when you need to buy materials.
Duties for non-U.S. sellers
According to Growtsy’s summary of Etsy’s notice, from July 9, 2026, sellers outside the U.S. who ship to U.S. buyers must price in duties and import fees and ship Delivered Duty Paid. Check Etsy’s Seller Handbook for the current rule if this applies to you.
Taxes you owe as a seller
For U.S. orders, Etsy calculates, collects and remits sales tax in most states. Etsy issues 1099-K forms to certain U.S. sellers.
Fees are generally deductible business expenses, though you should confirm treatment with a tax professional.
Etsy vs. Shopify: How the Costs Compare
Etsy gives you a built-in marketplace of shoppers, and you pay a cut of each sale for it.
Shopify charges a monthly subscription and lower per-sale payment costs, but you bring your own traffic.
If you’re weighing the two, this Etsy vs Shopify comparison covers the platform differences in more depth.
Here is the cost side, using published 2026 Shopify Basic rates from secondary sources (confirm on Shopify’s pricing page):
| Cost | Etsy (U.S.) | Shopify Basic (U.S.) |
|---|---|---|
| Monthly fee | $0 (Etsy Plus optional at $10) | $29 per month billed annually, or $39 month to month |
| Listing fee | $0.20 per listing | None |
| Platform sales fee | 6.5% transaction fee | None when using Shopify Payments |
| Card processing | 3% + $0.25 | 2.9% + $0.30 online |
| Extra fee for outside gateways | Not applicable | 2% |
| Marketplace traffic | Included | You supply it |
On our $35 example order, Etsy fees come to $3.78 and Shopify card processing comes to about $1.32 (2.9% of $35 plus $0.30).
The $2.46 gap means a store on the $39 monthly plan would need roughly 16 orders a month to cover the subscription on fees alone, or about 12 on the $29 annual plan.
That ignores Shopify apps, themes, advertising and the time it takes to build traffic, which is often the larger cost.
Etsy’s Offsite Ads fee also works as built-in customer acquisition, so a sale that comes from there might not exist at all on your own site.
Is Selling on Etsy Worth the Fees?
It depends on what Etsy gives you that you can’t easily get alone.
Etsy reported 5.6 million active sellers at the end of 2025 (down 1.5% year over year) in its fourth-quarter results on February 19, 2026, so the marketplace is large, and so is the competition.
Etsy tends to work best when:
- You sell handmade, vintage or personalized items that shoppers search for on Etsy.
- Your margins can absorb 10% to 15% in fees.
- You want a ready-made storefront, search traffic and payment handling.
It may be a weaker fit when your margins are thin, your items cost under about $10, or most of your sales come from your own audience.
Before you commit, read what other sellers say about the platform, such as these Etsy reviews, and weigh them against your own numbers.
How to Price So You Still Make a Profit
For a U.S. seller who builds shipping into the price, total Etsy fees are roughly 9.5% of the price plus $0.45 (the 6.5% transaction fee, the 3% processing fee, the $0.25 fixed fee and the $0.20 listing fee). To find the price that protects your profit:
Price = (costs + target profit + $0.45) ÷ (1 − fee percentage)
Using 9.5% as the fee percentage with no ads:
- Costs of $15 (materials, postage, packaging) and a target profit of 10give(25 + $0.45) ÷ 0.905 = $28.12.
If you expect 15% of the price to go to Offsite Ads on a typical sale, use 24.5% instead:
- ($25 + $0.45) ÷ 0.755 = $33.71.
Many sellers price for a blended rate based on how often Offsite Ads drive their orders.
Etsy’s own seller dashboard shows your actual fees per order, so check a few months of statements and adjust.
Ways to Reduce Your Etsy Fees
- Opt out of Offsite Ads while you qualify. If your prior 365-day sales are under $10,000, you can opt out.
- Think hard before crossing the threshold, because Etsy says the 12% rate applies from then on.
- Renew manually. Switch off auto-renew on listings that don’t sell.
- List in your payment account currency. This avoids the 2.5% currency conversion fee.
- Price for the fixed fees. Bundle small items into sets so the $0.45 in fixed charges spreads over a larger order.
- Use Etsy Plus only if you’ll use the credits. The $10 plan pays back in listing and ad credits only if you list enough items and run ads.
- Track every fee. Etsy’s payment account shows each charge, so review it monthly.
Common Mistakes New Sellers Make
- Forgetting that shipping is part of the fee base.
- Ignoring Offsite Ads in the price. One sale in five through ads changes your real margin.
- Underpricing low-cost items. The flat fees hit them hardest.
- Skipping the tax side. Keep records for 1099-K reporting and quarterly estimates.
- Treating payout reserves as a surprise. New shops and those with order backlogs are more likely to see them.
- Not rechecking policies. Etsy updates its fee policy several times a year.
Frequently Asked Questions
How much does Etsy take from each sale?
For a U.S. seller without ads, about 10% to 11% on a typical order, from the 6.5% transaction fee, 3% + $0.25 processing and the $0.20 listing fee. With Offsite Ads, add 12% or 15%.
Can I avoid the Offsite Ads fee?
You can opt out if your shop made less than $10,000 in sales over the prior 365 days. After you reach that level, Etsy says participation is required and the 12% rate applies.
Does Etsy charge fees on shipping?
Yes. The 6.5% transaction fee and the processing fee both apply to the shipping amount you charge buyers. The Offsite Ads fee applies to the total order amount too.
Are Etsy fees tax deductible?
They are generally treated as business expenses for U.S. sellers. Confirm with a tax professional.
Is Etsy Plus worth $10 a month?
Only if you’ll use the credits: Etsy provides 15 listing credits (worth $3) and $5 in Etsy Ads credits each month, which add up to $8 of value against the $10 fee, plus other subscriber tools.
Does Etsy refund fees when I refund a customer?
Partly. Etsy says it recalculates the payment processing fee when you refund. When Etsy covers a full refund through its protection program, other fees aren’t credited back to you.
Are Etsy fees different outside the U.S.?
Yes. Payment processing varies by bank country, and some countries add a Regulatory Operating Fee, which increased in several European markets on June 22, 2026.
Final Thoughts
Etsy’s fees are simple to list and surprisingly easy to underestimate. Add up the listing fee, the 6.5% transaction fee, payment processing and the chance of Offsite Ads, then price from your real costs instead of copying what other shops charge.
Check Etsy’s policy page a couple of times a year, because the rules change often even when the headline rates don’t.
Sources
- Etsy, “Fees & Payments Policy,” last updated October 5, 2026. https://www.etsy.com/legal/fees/
- Etsy, “Etsy Payments Policy,” last updated July 31, 2026. https://www.etsy.com/legal/etsy-payments
- Etsy, Inc., Fourth Quarter and Full Year 2025 Results (Form 8-K exhibit), February 19, 2026. https://www.sec.gov/Archives/edgar/data/1370637/000137063726000017/exhibit99112312025.htm
- Etsy Help Center, Regulatory Operating Fee article. https://help.etsy.com/hc/articles/1500011073202