Etsy is the most popular marketplace for POD sellers — but its fee structure is notoriously complex. There are at least 4 separate fees on every sale, and most sellers underestimate how much Etsy actually takes. Let's break down every single fee so you can price your products accurately.
Every time you create or renew a listing, Etsy charges $0.20. Listings last 4 months and auto-renew. You're also charged $0.20 each time you make a sale (the listing renews automatically). For multi-quantity listings, each sale triggers a new $0.20 charge.
If you sell 100 units per month, that's $20/month just in listing renewal fees.
This is Etsy's main revenue fee. They take 6.5% of the total order amount — including the item price, shipping cost, and gift wrapping. Yes, Etsy charges their fee on shipping too, which many sellers don't realize.
Example: A $25 item with $5 shipping = $30 total. Etsy's transaction fee = $30 × 6.5% = $1.95.
Etsy Payments (which is mandatory in most countries) charges 3% + $0.25 per transaction for US sellers. This rate varies by country — Canadian sellers pay 3% + $0.25 CAD, UK sellers pay 4% + £0.20.
Using our $30 example: 3% × $30 + $0.25 = $1.15.
Etsy runs ads for your products on Google, Facebook, Instagram, and Pinterest. If a buyer clicks an ad and purchases within 30 days, you pay an advertising fee on that sale:
Once you cross $10K in trailing 12-month revenue, offsite ads become mandatory at 12%. Factor this into your pricing from the start.
Let's add it all up for a $25 t-shirt with $5 shipping (no offsite ad sale):
If offsite ads triggered on that sale (15%), add another $4.50 — bringing total fees to $7.80 or 26% of the order.
Most POD sellers lose money because they forget to account for Etsy fees in their pricing. Here's the formula:
Minimum Price = (Production Cost + Shipping + Desired Profit) / (1 - Total Fee %)
Or skip the math — use our Etsy Fee Calculator to see exactly what Etsy takes and what you keep.
| Fee Type | Rate | Applied To | Example ($25 item + $5 ship) |
|---|---|---|---|
| Listing Fee | $0.20 flat | Per listing & per sale | $0.20 |
| Transaction Fee | 6.5% | Item + shipping + gift wrap | $1.95 |
| Payment Processing | 3% + $0.25 | Order total | $1.15 |
| Offsite Ads (if triggered) | 15% or 12% | Order total | $4.50 |
| Total (without ads) | ~11% | $3.30 | |
| Total (with ads) | ~26% | $7.80 |