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Quick Answer: Etsy charges a 6.5% transaction fee + 3% + $0.25 payment processing + $0.20 listing fee per item sold. On a $25 sale, you pay approximately $2.65 in fees before offsite ads.
If you've ever wondered where your Etsy revenue goes, you're not alone. Etsy has five separate fee types, and most sellers only know about one or two. This guide breaks down every fee with real dollar examples so you know exactly what to expect on each sale.
Etsy applies fees at different stages of the selling process. Here they are in order:
| Fee Type | Rate | Applied To | Example ($25 sale) |
|---|---|---|---|
| Listing fee | $0.20 | Per item listed | $0.20 |
| Transaction fee | 6.5% | Sale price + shipping + gift wrap | $1.63 |
| Payment processing | 3% + $0.25 | Total order amount | $1.00 |
| Offsite Ads (optional) | 12–15% | Sales from Etsy ads off-platform | $3.00–$3.75 |
| Currency conversion | 2.5% | If seller ≠ USD | Varies |
| Total (no offsite ads) | ~9.5% | $2.83 |
Every item you list costs $0.20. This fee renews every 4 months if the item doesn't sell. When it does sell, a new $0.20 listing fee is charged for the quantity sold. If you sell 3 units of the same listing, you pay $0.60 in listing fees.
This is Etsy's primary revenue fee. It's charged on the full amount the buyer pays — including item price, shipping, and gift wrap if added. The 6.5% rate was increased from 5% in 2022.
The transaction fee applies to your shipping price too — not just the item price. If you charge $5 shipping on a $20 item, Etsy takes 6.5% of $25 = $1.63, not $1.30.
US sellers pay 3% + $0.25 per transaction. This rate varies by country — UK sellers pay 4% + £0.20, Australian sellers pay 3% + A$0.25. The processing fee covers Etsy Payments, which is required for most sellers.
Etsy automatically promotes your listings on Google, Facebook, Instagram, and other platforms through their Offsite Ads program. If a buyer clicks one of these ads and purchases within 30 days, you pay:
Let's use the most common POD product — a $24.99 t-shirt with $4.99 shipping (total $29.98):
| Fee | Calculation | Amount |
|---|---|---|
| Listing fee | Flat | $0.20 |
| Transaction fee | $29.98 × 6.5% | $1.95 |
| Payment processing | $29.98 × 3% + $0.25 | $1.15 |
| Total Etsy fees | $3.30 | |
| Your revenue after fees | $29.98 − $3.30 | $26.68 |
Then subtract your POD provider base cost (e.g., $12.95 for Printful) and shipping cost ($4.99 passed to buyer in this example). Actual profit: $26.68 − $12.95 = $13.73 per shirt.
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