Complete Etsy Fee Breakdown for POD Sellers (2026)
- Etsy charges at least 4 separate fees on every sale (listing, transaction, payment processing, and potentially offsite ads)
- Total Etsy fees are approximately 11-13% of your order โ before production costs
- Offsite ads become mandatory at 12% once you cross $10K in annual revenue
- Etsy charges their 6.5% transaction fee on shipping too, not just the item price
Etsy is the most popular marketplace for POD sellers โ 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.
1. Listing Fee โ $0.20 per listing
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.
2. Transaction Fee โ 6.5% of order total
This is Etsy's main revenue fee. They take 6.5% of the total order amount โ 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 ร 6.5% = $1.95.
3. Payment Processing โ 3% + $0.25
Etsy Payments (which is mandatory in most countries) charges 3% + $0.25 per transaction for US sellers. This rate varies by country โ Canadian sellers pay 3% + $0.25 CAD, UK sellers pay 4% + ยฃ0.20.
Using our $30 example: 3% ร $30 + $0.25 = $1.15.
4. Offsite Ads โ 15% (optional) or 12% (mandatory)
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:
- Under $10,000/year in sales: 15% fee, opt-out available
- Over $10,000/year in sales: 12% fee, mandatory (cannot opt out)
Once you cross $10K in trailing 12-month revenue, offsite ads become mandatory at 12%. Factor this into your pricing from the start.
Real Example: Total Fees on a $25 Sale
Let's add it all up for a $25 t-shirt with $5 shipping (no offsite ad sale):
- Listing fee: $0.20
- Transaction fee (6.5% of $30): $1.95
- Payment processing (3% of $30 + $0.25): $1.15
- Total Etsy fees: $3.30
- That's 11% of your $30 order โ before your production costs.
If offsite ads triggered on that sale (15%), add another $4.50 โ bringing total fees to $7.80 or 26% of the order.
How to Price Correctly
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 โ 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 |
Frequently Asked Questions
Can I opt out of Etsy offsite ads?
Only if you earn less than $10,000 per year on Etsy. Once you cross that threshold, offsite ads become mandatory at 12%. Below the threshold, you can opt out but the rate is 15% when it does trigger.
Does Etsy charge fees on shipping?
Yes. Etsy's 6.5% transaction fee is calculated on the total order amount, which includes shipping costs. This is a common surprise for new sellers.
How much does Etsy take from a $25 sale?
For a $25 item with $5 shipping (no offsite ad): approximately $3.30 in total fees (~11%). If offsite ads triggered: $7.80 (~26%). Use our Etsy Fee Calculator for exact numbers.
Is Etsy still worth it for POD sellers in 2026?
Yes โ Etsy has the largest built-in audience for handmade and custom products. The fees are higher than selling on your own website, but the traffic Etsy brings often makes up for it, especially for new sellers without an existing audience.