What Fees Does Etsy Charge
In all likelihood, the price a customer is paying for your wares on Etsy is not what you will receive. Etsy’s fees are the reason for that. We already touched briefly on shipping, but there are more Etsy fees for sellers that you need to know about.
Sellers also have to pay transaction fees that effectively serve as commission fees. You can also pay up for advertising fees if you want better visibility for your products. Several optional fees may also be charged to you depending on which Etsy services you are using.
It’s important to be cognizant of those fees when setting your Etsy pricing. Failing to consider them as you operate your store could prove costly in more ways than one.
Etsy Cost to Sell
You must always be aware of Etsy's cost to sell, prices, and fees because they are needed for measuring the income you will get from the sale of your handmade or vintage products. Furthermore, they also help you understand how much you will get and how much you will have to pay to the site in exchange for its services.
Calculating your operating expenses will be easy if you decide to use an Etsy fees calculator.
The calculator should clue you into what you’re paying in terms of Etsy commission fees. Those fees depend on your Etsy commissions and profit margins so calculating them is very important.
Hobbyists into arts and crafts and collectors who own vintage items can sell their goods on Etsy. Before selling, you should have to open the calculator, evaluate the expenses you have incurred for raw materials or purchases, and then add the costs charged by Etsy in order to get your net income.
You need to focus on the business side of things first and estimate if your potential earnings will make selling on Etsy worth it. There’s no denying the fact that Etsy offers a terrific eCommerce platform, but you still have to decide if its benefits outweigh its costs.
Etsy Monthly Plans
Similar to numerous other eCommerce platforms, Etsy also provides its users with various selling tools. The tools you’ll have access to will be dictated by your subscription plan.
First off, you have the Etsy Standard Plan. This is the plan you’re automatically on once you start selling on Etsy.
The Etsy Standard Plan gives users access to all of the platform’s basic tools. You aren’t given any perks, but you also have access to the platform’s other paid services if you want to use them.
For $10 per month, you can sign up for the Etsy Plus Plan. Additional taxes may be added on top of that fee based on the status of your business and/or where you live.
Etsy Plus provides a monthly budget of credits for ads and listings, a discount offer for a custom web address, restock requests, additional shop customization options, and discounts on custom packaging and promotional materials.
To be clear, that $10 payment is not included among the necessary Etsy fees to sell. The Etsy Plus Plan is just there to make managing your store easier.
Etsy Fees Explained
It’s now time for us to go in-depth on the fees you will encounter on a more regular basis. These are not just fees that you’ll be reminded to pay monthly. Depending on how active your store is, you may be paying these fees every day.
Specific fees we will be addressing in this section include the listing fees, transaction fees, shipping fees, in-person selling fees, ad fees, conversion fees, and deposit fees. You need to understand when those fees come into play so you can adjust your expectations accordingly. Studying those fees will also let you know if there’s something potentially amiss regarding what Etsy is charging you.
Taking the time to study Etsy’s fees is also beneficial because it can help you map out your spending. You can pick and choose which paid services you can get based on your budget. That should prevent you from blowing your budget accidentally and throwing your plans off-course.
Etsy Listing Fees
The payments you will have to make are not limited to the Etsy shipping transaction fee. Etsy will also charge you if put listings up on their platform.
The listing fee for one item is $0.20. The aforementioned fee covers four months. If the item does not sell within four months, you will have to pay to get it listed again.
For those who may be wondering how to pay Etsy listing fee, the platform sets renewals to automatic for you by default. Change the setting to manual if you wish to evaluate your items before posting them again.
You can also get free listings on Etsy. Sellers will get 40 free listings if they open their store via an invitation link. Both you and the person who sent you the invitation link will receive the free listings.
Etsy Transaction Fee
Transaction fees are also attached to any sales you make via Etsy. You should know that this is not the Etsy delivery fee. Basically, what you’re paying here is the commission fee to Etsy.
The listed price you’ve selected has a big impact on your transaction fees. That’s because this fee is determined by percentage.
In order to calculate the transaction fee for a specific item, you have to consider its listed price. Now, you need to add your shipping and gift wrapping fees to that aforementioned amount.
Once you have the total amount with the shipping and gift wrapping charges included, go ahead and figure out what is 5% of that number. That smaller number you get will represent your transaction fee for that particular item.
Any additional fees you charge the customer for the product will also be included in the transaction fee.
Note that the transaction fee will not apply to the goods and services, harmonized sales, or sales taxes unless you already included them in the listed price.
Etsy users should also know that the transaction fee will be converted if the currencies for the listing and their payment account differ. The transaction fee will be converted to your payment account currency. The established rate will be used to make that conversion.
Although the transaction fees can eat up a big chunk of your profits, they will not be a hassle to pay. Etsy will deduct the transaction fees from your current balance whenever you make a sale. You don’t have to go out of your way to pay them.
Etsy Shipping Fees
When it comes to shipping fees, there are two separate charges that you have to keep in mind. The first charge is related to the shipping label you’ll be using. The other is based on the shipping cost you have listed for a particular item.
Let’s start with the shipping label.
Shipping labels are necessary additions to the packages you’re sending out. They contain vital information about the contents of the package as well as the party who will be receiving it. You will likely not be allowed to send your item to the buyer unless you buy a shipping label first.
The price of the shipping label will change based on which you’ve one decided to purchase. We cannot give you a more specific number because your personal preference will determine that.
Next up, you have the shipping transaction fee. To calculate the shipping transaction fee, you need to consider your listed shipping cost for a specific item. Calculate 5% of that listed shipping cost to get your shipping transaction fee.
Just like the transaction fee we discussed earlier, the shipping transaction fee will be deducted directly from your balance. There’s no need to pay it manually.
In-Person Selling Fees
Sales carried out with the help of Etsy are usually done from start to finish online. However, they don’t always have to be done that way. You can also use the Square Reader if you want to process in-person sales.
Unsurprisingly, there are still some fees that will come into play even if you are selling your goods in person.
Whenever you sell an item in person using the Square Reader, you will be charged another transaction fee. The transaction fee amounts to $0.20 for each item. We want to clarify that the aforementioned transaction fee will only be charged when you sell items that are not synced from your Etsy shop’s inventory.
You will have that additional transaction fee labelled in your payment account as a “Square manual” fee.
If the item you sold in person was synced from your store inventory, you will only have to pay the listing fee if you intend to sell it again.
Etsy will no longer subject your sales to their transaction and payment processing fees if you use the Square reader. Instead, you will have to pay Square’s fees for those sales. You can learn more about those fees by checking out Square’s detailed breakdown.
Sellers no longer have to worry about how to pay Etsy's listing fee if they intend to use the Square Reader.
Etsy's Ad Fees
Companies routinely invest heavily in their advertising. They are playing the odds by doing business that way. They believe that getting in front of more customers will eventually lead to more impressive sales numbers.
You can also rely on advertising to boost the visibility of your Etsy store. Unlike an Etsy transaction fee, you can control your ad fees.
Etsy merchants can promote their goods using two different types of ads. Those ads include ones that are native to the site and others that will appear elsewhere online.
Both types of ads can be hugely beneficial to your business. We’ll focus first on the offsite ads and how much they cost.
Offsite Ads Fees
Offsite ads provide tremendous exposure for your goods and your Etsy store. These are the ads you may find while using a search engine or utilizing the search engine provided by social networking sites.
You will be charged a fee for your offsite ad if it directly leads to a sale.
Etsy imposes their offsite advertising fee whenever an individual orders something from your store within 30 days of clicking an ad that featured one of your listings. The buyer doesn’t have to purchase the same item they clicked on. As long as they order something from your store within that timeframe, you will be hit with the offsite fee.
The offsite advertising fee changes based on how much you’ve earned via your Etsy store. Merchants who made over $10,000 within 365 days will pay a 12% offsite ad fee. Those who made less than $10,000, will have to pay a 15% offsite ad fee.
To keep advertising costs from going out of control, the offsite advertising fee will never go past $100 for a single order.
Multi Quantity And Multi Listing Fee
If you are selling multiple quantities of a single item, you will be charged the listing fee for each sale you make. Basically, you have to pay the listing fee whenever the same item is put up for sale again.
Etsy merchants must always stay on top of their listings. Remember that Etsy will automatically renew a listing after you make a sale. Your listing fees may get out of hand without you knowing about it.
You will also have to pay the $0.20 listing fee multiple times if you want to offer different qualities for a certain item. Do you want to sell a shirt in five different colors? That means creating five different listings and paying a $0.20 fee for each one.
Note that you can still use your free listings for those additional options if you still have them.
Currency Conversion Fee
Chances are you’ve probably tried to purchase something online before. After searching for a while, something may catch your eye. You then go to buy it but realize that it’s not listed in your currency.
You can use a currency converter to figure out how much the product will cost, but that’s not something a lot of people like to do. That’s why a retailer may list a product in a widely used currency as opposed to the currency used in their area.
Business owners on Etsy can also use a currency for their listing that is different from what they use on their accounts. They will just have to pay a currency conversion whenever listings like that lead to sales.
The currency conversion fee on Etsy is set at 2.5%.
Payments Deposit Fees
The feature known as Etsy Payments can make it easier for merchants to accept payments on that eCommerce platform. Etsy Payments is currently available in select countries. Check out this link if you wish to see which countries can use Etsy Payments.
Etsy Payments gives your buyers numerous payment options to choose from. They can pay using credit cards, debit cards, Apple Pay, Google Pay, PayPal, Etsy Credits, and Etsy Gift Cards.
If you are using Etsy Payments to accept payments from buyers, you need to become familiar with its deposit minimum, its fee threshold, and its deposit fee. That deposit fee may also be referred to as the margin.
Deposit Minimum on Etsy
The deposit minimum is the minimum amount that a deposit must meet for the money to be transferred to your bank account. Etsy is in charge of setting the deposit minimum. Etsy also sets the fee threshold. Ideally, you want to exceed the fee threshold before making a deposit so you can avoid paying the deposit fee. You will only be charged the deposit fee if your deposit exceeds the minimum but fails to reach the threshold. A VAT may also be added to the deposit fee based on your location. You can use an Etsy price calculator to determine which of your items may be subject to those margin fees.
The people over at Etsy provide a great platform for enterprising individuals, but they are still running a business. You cannot be surprised about them trying to turn profits as well.
That’s why Etsy also takes a percentage of your sales. Etsy takes a 5% cut out of each sale you make.
Note that they take their 5% cut from the total cost of the item you sold. That means the cost of shipping and gift wrapping is also accounted for when Etsy takes their commission.
Factor that cut into your pricing decisions so you can preserve your profit margins.
Shipping and Wrapping
Merchants must pay 5% of the price they charge for each item they sell to Etsy. You can think of that 5% fee as the price of doing business with the aforementioned eCommerce platform.
The cost of shipping and gift wrapping that specific product must also be included in that price. If you’re selling for something for $20, but shipping and gift wrapping will tack on an additional $5, then you have to take Etsy’s cut from $25.
Those fees can quickly pile up. Still, many merchants are willing to pay those fees in exchange for the platform Etsy provides. They see Etsy cost to sell as a fair price.
Considering a Budget for Etsy Ads
Offsite ads can bring you closer to shoppers who haven’t visited the eCommerce platform. If your goal is to reach shoppers who are already regular Etsy users, you may want to use their native ads instead.
You can purchase ads via the Advertising Dashboard in the Shop Manager menu. Upon reaching that menu, you will be asked to set a maximum limit for your daily ad budget.
Etsy will then submit a bid for you based on the budget you just set. If you have the winning bid, you will be given a specific ad slot relevant to the item you’re selling.
The platform will charge you each time your ad is clicked. Hopefully, you’ll generate enough sales from those clicks to justify your advertising fees. Still, Etsy won’t charge you more than your daily advertising budget so you won’t overspend as long as you’re careful with the numbers you’re entering.
In addition to those Etsy ads, you can also promote your store on your social media accounts. You can also advertise your store with the help of some carefully constructed blogs.
Calculating VAT In Etsy
The VAT, or value-added tax, is something you can overlook easily while selling on Etsy. That can be a costly mistake because VAT can pile up after numerous transactions.
Buyers in certain regions may have to pay that value-added tax if they want to purchase items on Etsy. Other times, you may have to pay the tax to use a service provided by Etsy. For instance, some sellers need to pay VAT if they want to purchase an Etsy Plus subscription.
We cannot indicate tell you what your VAT rate will be because they vary by area. Check on that first so you can set good prices for your listings.
Etsy Payments is a feature that will only affect your finances if you decide to use it. Think of it as Etsy’s way of speeding up transactions for both you and your customers.
The deposit minimum, deposit fee, and fee threshold only matter if you have Etsy Payments. Otherwise, you don’t have to pay that much attention to them.
You must have a residential address and a bank account in an eligible country before you can use Etsy Payments. Merchants must also have a valid credit, debit, or reloadable prepaid card before they can use that service.
The eCommerce platform will also have to verify your identity before they grant you access to Etsy Payments.
Etsy Fees Formula
Managing your Etsy store can take up the bulk of your day. If you have to calculate your costs constantly as well, you may not be able to manage your Etsy store properly.
Consider using an Etsy profit calculator if you find yourself in that scenario. By using a fee calculator, you can quickly determine the viability of certain products or product lines. You can easily determine if offering a product will be worth it after you run it through a profit calculator.
Over 100,000 Etsy sellers use ExportYourStore to calculate their Etsy fees and manage their stores. Feel free to join them if you want to make that endeavor as easy as it can possibly be.
Why You Need an Etsy Fee Calculator
Etsy has become the place to go if you want to sell your handmade creations. The access it provides is unparalleled and that allows stores big and small to thrive.
Of course, Etsy is not providing that platform for free. You have to account for Etsy shipping fees and numerous other payments that are linked to your store’s operations.
You must keep track of all those fees to know how profitable your store is and a fee calculator will help with that. Chat with us to learn when those fees will apply and how much they could potentially eat into your profits.