Etsy Business
Etsy Fees Explained: Every Fee You'll Pay as a Seller (2026)
By Jordan Ellis · Updated 2026-03-11
Etsy Fee Overview: What You Pay and When
Understanding the cost to start an Etsy shop begins with knowing which fees apply at each stage of the selling process. Etsy doesn't charge a single flat rate — instead, sellers encounter multiple smaller fees that stack on top of each other throughout the listing-to-sale pipeline.
Here's a quick summary of every fee type before we dig into the details:
- Listing fee — charged when you publish or renew a listing
- Transaction fee — charged when you make a sale
- Payment processing fee — charged when Etsy processes the buyer's payment
- Offsite ads fee — charged only if a sale comes through an Etsy offsite ad
- Subscription fee — optional monthly cost for Etsy Plus
- Currency conversion fee — charged on international transactions
- Pattern fee — optional for sellers who want a standalone website
If you're just getting started, the first three fees are the ones you'll encounter on every single sale. The rest are either optional or situational. Let's break each one down so you know exactly what to expect when you open your Etsy shop.
Etsy Listing Fee ($0.20 Per Item)
The Etsy listing fee is the first cost you'll pay as a seller. Each time you create a new listing or renew an existing one, Etsy charges $0.20.
Key Details About the Listing Fee
- When it's charged: The $0.20 fee is deducted immediately when you publish a listing, regardless of whether the item sells.
- Listing duration: Each listing stays active for 4 months (120 days). If the item doesn't sell within that window, you can choose to auto-renew it for another $0.20.
- Multi-quantity listings: If you sell an item that has multiple quantities (for example, 10 units of the same candle), the listing renews automatically when a unit sells. That means you'll pay another $0.20 listing fee each time a unit is purchased.
- Variations: Adding variations (size, color, etc.) to a single listing doesn't trigger additional listing fees. You pay $0.20 for the listing, not per variation.
What This Means in Practice
If you're launching a new shop with 20 listings, your upfront listing cost is $4.00 (20 × $0.20). That's one of the reasons Etsy remains one of the most affordable platforms to start selling on — the barrier to entry is genuinely low.
However, be mindful of auto-renewal. If you have 50 listings and none of them sell within 4 months, you'll pay another $10.00 to renew them all. Review your listings regularly and deactivate any that aren't performing rather than letting them auto-renew indefinitely.
Etsy Transaction Fee (6.5%)
The Etsy transaction fee is the largest fee most sellers pay. As of 2026, the Etsy transaction fee is 6.5% of the total order amount, which includes the item price and the shipping cost you charge the buyer.
How the Transaction Fee Is Calculated
The formula is straightforward:
Transaction Fee = (Item Price + Shipping Price) × 6.5%
For example, if you sell a handmade mug for $20 and charge $5 for shipping, the transaction fee is:
($20 + $5) × 0.065 = $1.63
Important Notes on the Transaction Fee
- Shipping is included in the calculation. This catches many new sellers off guard. If you charge $10 for shipping, Etsy takes 6.5% of that $10 too.
- Free shipping strategy: Offering free shipping doesn't eliminate the transaction fee — it just means the fee is calculated only on the item price. However, rolling shipping costs into your item price means the 6.5% is still applied to the full amount either way.
- Sales tax and VAT: The transaction fee is calculated on the sale price before tax. Etsy does not charge the transaction fee on sales tax amounts it collects.
- The rate increased from 5% to 6.5% in April 2022. This remains the current rate as of March 2026.
This is the fee that impacts your margins the most, especially as your prices and shipping costs increase. Factor it into your pricing from day one rather than treating it as a surprise deduction later.
Etsy Payment Processing Fee (~3% + $0.25)
When a buyer pays for their order, Etsy processes that payment through Etsy Payments — the platform's built-in payment system. The Etsy payment processing fee for US-based sellers is 3% + $0.25 per transaction.
Payment Processing Rates by Country
Payment processing rates vary depending on where your shop is located. Here are the rates for the most common seller locations:
| Country | Processing Rate |
|---|---|
| United States | 3% + $0.25 |
| United Kingdom | 4% + £0.20 |
| Canada | 3% + CA$0.25 |
| Australia | 3% + AU$0.25 |
| European Union | 4% + €0.30 |
How This Compares to Other Payment Processors
The 3% + $0.25 rate for US sellers is competitive with industry standards. Stripe charges 2.9% + $0.30, and PayPal charges 2.99% + $0.49 for standard transactions. Etsy's rate is broadly in line with what you'd pay using any major payment processor, so this fee shouldn't be a dealbreaker.
Important Details
- Etsy Payments is mandatory in most supported countries. You cannot opt out and use a third-party processor exclusively.
- The $0.25 fixed portion makes this fee proportionally higher on low-priced items. On a $5 item, the $0.25 alone represents 5% of your sale price.
- Refunds: If you issue a full refund, the transaction fee and listing fee may be refunded, but Etsy retains the payment processing fee.
Offsite Ads Fee (12–15%)
Etsy runs advertising campaigns on platforms like Google, Facebook, Instagram, and Pinterest to drive traffic to listings. If a buyer clicks one of these offsite ads and purchases from your shop within 30 days, Etsy charges an offsite ads fee.
Offsite Ads Fee Rates
| Annual Revenue | Offsite Ads Rate | Opt-Out Available? |
|---|---|---|
| Under $10,000 | 15% of the order total | Yes |
| $10,000 or more | 12% of the order total | No |
Can You Opt Out?
- Shops earning under $10,000/year: Yes, you can opt out in your shop settings under Marketing > Offsite Ads.
- Shops earning $10,000+/year: No. Participation is mandatory, though the rate drops to 12%.
Is the Offsite Ads Fee Worth It?
The offsite ads fee is one of the most debated charges among Etsy sellers. On one hand, you only pay when a sale actually happens — so there's no upfront advertising cost. On the other hand, 15% is a significant chunk of your revenue, and it stacks on top of the transaction fee and payment processing fee.
For new sellers with limited marketing budgets, offsite ads can drive sales you wouldn't otherwise get. For established sellers with their own marketing channels, the mandatory participation at the $10,000+ tier can feel like an unwelcome tax.
Strategy tip: If you're under the $10,000 threshold and your shop already gets strong organic traffic, consider opting out. You can always re-enable offsite ads later if you want to test whether they drive incremental sales.
Etsy Plus Subscription ($10/Month)
Etsy Plus is an optional subscription plan that costs $10.00 per month. It's designed for sellers who want extra customization and marketing tools beyond what a standard free Etsy shop provides.
What You Get With Etsy Plus
- 15 listing credits per month (saves $3.00/month on listing fees)
- $5 Etsy Ads credit per month for on-site advertising
- Advanced shop customization: Featured listing options, banner templates, and a restock request feature for sold-out items
- Discounted custom web address: A .store domain through Hover at a reduced rate
- Shop insights: Advanced analytics not available to free accounts
Is Etsy Plus Worth It?
At $10/month, the credits alone give you $8 in tangible value (15 listing credits at $0.20 each = $3 + $5 Etsy Ads credit). That means you're effectively paying $2/month for the added customization features and analytics.
For sellers who list 15+ items per month and are already running Etsy Ads, the subscription nearly pays for itself. For casual sellers with fewer than 10 listings, it's probably not worth the monthly commitment.
Currency Conversion Fees
If a buyer purchases from your shop using a different currency than your shop's default, Etsy applies a currency conversion fee of 2.5% on top of the mid-market exchange rate.
When This Fee Applies
- International sales: When a buyer in the UK pays in GBP for an item listed in USD, the conversion fee applies.
- Deposit currency: If your bank account currency differs from your shop currency, Etsy also charges the 2.5% conversion fee when depositing funds.
- Etsy Ads: If you run ads in a currency different from your shop currency, the conversion fee applies to your ad spend too.
How to Minimize Currency Conversion Fees
- Set your shop currency to match your bank account currency.
- If you sell internationally, consider whether the 2.5% conversion fee is worth absorbing or whether you should adjust your international pricing to account for it.
For most US-based sellers who receive payments in USD, this fee only comes into play on international orders and is a relatively minor cost.
Pattern by Etsy Fees
Pattern is Etsy's website builder that lets you create a standalone website powered by your Etsy inventory. The cost is $15/month after a 30-day free trial.
What Pattern Includes
- A custom website with your own domain name
- No Etsy branding on your site
- Your Etsy listings automatically sync to your Pattern site
- Built-in analytics and SEO tools
The Catch
Even though Pattern gives you a separate storefront, all standard Etsy fees still apply to sales made through your Pattern site. You'll still pay the listing fee, transaction fee, and payment processing fee. Pattern is essentially an additional $15/month marketing expense rather than an alternative to Etsy's fee structure.
For most sellers, investing that $15/month into Etsy Ads or their own Shopify store (which doesn't charge transaction fees if you use Shopify Payments) is a better use of the budget. Pattern makes sense only if you want a quick standalone website without the effort of building one from scratch and are comfortable paying the Etsy fee stack on every sale.
Complete Fee Breakdown Table
Here's a comprehensive view of every fee Etsy charges, with a real-world example based on a $25 item sale with $5 shipping to a US buyer:
| Fee Type | Rate | Example on $25 Sale (+$5 Shipping) | Notes |
|---|---|---|---|
| Listing Fee | $0.20 per listing | $0.20 | Charged at listing creation/renewal; renews every 4 months or upon sale |
| Transaction Fee | 6.5% of (item + shipping) | $1.95 | Applied to full order total including shipping |
| Payment Processing Fee (US) | 3% + $0.25 | $1.15 | Varies by country; $30 × 3% + $0.25 = $1.15 |
| Offsite Ads Fee | 15% (or 12% if $10K+) | $4.50 (if applicable) | Only charged if sale came via offsite ad; opt-out available under $10K revenue |
| Etsy Plus Subscription | $10/month | N/A | Optional; includes listing credits and ads credits |
| Currency Conversion | 2.5% | $0.75 (if applicable) | Only on cross-currency transactions |
| Pattern Subscription | $15/month | N/A | Optional standalone website builder |
Without offsite ads or currency conversion, the total mandatory fees on this $25 + $5 shipping sale come to $3.30 — or about 11% of the $30 order total.
Worked Example: Total Fees on a $25 Sale
Let's walk through the complete math on a realistic sale: a handmade soy candle listed at $25.00 with $5.00 shipping, sold to a domestic US buyer through organic Etsy search (no offsite ad involved).
Step 1: Listing Fee
You created this listing when you opened your shop.
Listing fee: $0.20
When this candle sells, the listing auto-renews (since you have more inventory), triggering another $0.20 listing fee for the renewed listing. For this calculation, we'll include the initial listing fee.
Step 2: Transaction Fee
The transaction fee is 6.5% of the total order amount (item price + shipping):
$25.00 + $5.00 = $30.00 $30.00 × 0.065 = $1.95
Step 3: Payment Processing Fee
The buyer pays with a credit card through Etsy Payments. The US payment processing rate is 3% + $0.25:
$30.00 × 0.03 = $0.90 $0.90 + $0.25 = $1.15
Step 4: Total It Up
| Fee | Amount |
|---|---|
| Listing Fee | $0.20 |
| Transaction Fee | $1.95 |
| Payment Processing Fee | $1.15 |
| Total Fees | $3.30 |
What's Left After Fees
| Amount | |
|---|---|
| Sale Price (item + shipping) | $30.00 |
| Total Etsy Fees | -$3.30 |
| Revenue After Fees | $26.70 |
That means you keep $26.70 out of $30.00, with Etsy taking 11% of the order total in fees.
What If Offsite Ads Apply?
If that same sale came through an Etsy offsite ad, the additional fee would be:
$30.00 × 0.15 = $4.50 (for sellers under $10K/year)
Total fees would jump to $7.80, and you'd keep only $22.20 — meaning Etsy's total take would be 26% of your sale. This is why understanding offsite ads and whether to opt out is critical for your product pricing strategy.
Etsy vs eBay vs Amazon Handmade vs Shopify: Fee Comparison
Etsy isn't the only option for selling handmade and vintage goods online. Here's how its fees stack up against the major alternatives in 2026:
| Fee Category | Etsy | eBay | Amazon Handmade | Shopify (Basic) |
|---|---|---|---|---|
| Listing Fee | $0.20 per listing | Up to 250 free/month; $0.35 after | None | None (unlimited) |
| Transaction / Referral Fee | 6.5% | 13.25% (most categories) | 15% referral fee | 0% (with Shopify Payments) |
| Payment Processing | 3% + $0.25 (US) | 2.35% + $0.25 (managed payments) | Included in referral fee | 2.9% + $0.30 (online) |
| Monthly Fee | $0 (free plan) / $10 (Plus) | $0 (starter) / $7.95 (store) | $39.99 (Professional seller) | $39/month |
| Best For | Handmade, vintage, craft supplies | Used goods, vintage, variety | Handmade with Amazon audience | Brand building, full control |
Key Takeaways From the Comparison
Etsy vs eBay: Etsy is cheaper on a per-sale basis for most items. eBay's 13.25% final value fee (in most categories) is significantly higher than Etsy's 6.5% transaction fee, even when you add Etsy's payment processing on top. However, eBay offers 250 free listings per month, which benefits high-volume sellers with many SKUs.
Etsy vs Amazon Handmade: Amazon Handmade's flat 15% referral fee is simple but expensive. On a $25 item, Amazon takes $3.75 versus Etsy's $3.30 (listing + transaction + processing). Amazon's massive customer base can make up for the higher fees through volume, but the Professional seller account adds $39.99/month.
Etsy vs Shopify: Shopify charges no transaction fees if you use Shopify Payments, making it the cheapest option per sale for established sellers. However, the $39/month base cost means you need consistent sales volume to justify the fixed expense. Shopify also requires you to drive your own traffic — there's no built-in marketplace audience like Etsy provides.
The bottom line: For new and small-volume sellers, Etsy offers the lowest barrier to entry and the best cost-to-traffic ratio. As your business grows and you build your own audience, migrating to Shopify (or running both concurrently) becomes increasingly attractive from a fee perspective.
How to Minimize Your Etsy Fees
While you can't eliminate Etsy's core fees, you can take several steps to reduce their impact on your margins:
1. Price Strategically
Build all fees into your pricing from the start. A common formula is:
Minimum Price = (Material Cost + Labor + Desired Profit) ÷ (1 – Total Fee Percentage)
If your material cost is $5, labor is $8, desired profit is $7, and your total fee percentage is 11%:
($5 + $8 + $7) ÷ (1 – 0.11) = $20 ÷ 0.89 = $22.47 minimum price
2. Opt Out of Offsite Ads (If Eligible)
If your shop earns under $10,000/year, go to Shop Manager > Marketing > Offsite Ads and turn them off. This eliminates the risk of a 15% fee eating into an already thin margin.
3. Review and Deactivate Underperforming Listings
Every 4 months, deactivate listings that haven't generated views or sales. This prevents unnecessary $0.20 renewal fees from stacking up across dozens of dead listings.
4. Consolidate Variations
Instead of creating separate listings for each color or size of a product, use Etsy's variation feature within a single listing. One listing fee covers all variations.
5. Factor Shipping Into Item Price
While this doesn't technically reduce fees (the transaction fee still applies to the total amount), offering "free shipping" by rolling the cost into your item price can improve your search ranking on Etsy, leading to more sales and better ROI on the fees you're already paying.
6. Skip Pattern and Etsy Plus Unless They Pay for Themselves
Don't subscribe to Pattern ($15/month) or Etsy Plus ($10/month) unless you can clearly track a return on investment from the added features. For most shops under 50 listings, the free plan is sufficient.
Frequently Asked Questions
How much does it cost to start an Etsy shop in 2026?
Opening an Etsy shop is free — there's no registration fee or monthly subscription required to create your account and set up your storefront. The first cost you'll encounter is the $0.20 listing fee when you publish your first product. Most new sellers can get started with as little as $5 to $10 for their initial batch of listings. There's no minimum number of listings required to open a shop, so you can start with just one item for $0.20 and scale from there. Check out our complete setup checklist for a step-by-step walkthrough.
What percentage does Etsy take from each sale in 2026?
Etsy takes a combined total of roughly 10 to 12% on each sale for most US-based sellers. This breaks down as: 6.5% transaction fee on the order total (item price + shipping) plus 3% + $0.25 in payment processing. On a $30 order, that comes to about $3.30, or 11%. If an offsite ad drove the sale, an additional 12–15% applies on top, potentially pushing the total to 26% or more.
Can I avoid Etsy's offsite ads fee?
Yes, if your shop earned less than $10,000 in the previous 12 months. Navigate to Shop Manager > Marketing > Offsite Ads and toggle participation off. Sellers who crossed the $10,000 threshold are locked into the offsite ads program but pay a reduced rate of 12% instead of 15%. There is currently no way for high-volume sellers to opt out, regardless of whether they find the ads beneficial.
Is Etsy Plus worth the $10 monthly fee?
Etsy Plus makes financial sense if you consistently list 15+ new items per month and run Etsy Ads. The subscription includes 15 listing credits ($3 value) and $5 in Etsy Ads credit, giving you $8 in credits for a $10 fee. The remaining $2 effectively buys you advanced customization options, restock request alerts, and enhanced analytics. For casual sellers with fewer than 10 active listings, the free plan covers everything you need.
How do Etsy fees compare to selling on Amazon Handmade?
Amazon Handmade charges a flat 15% referral fee on each sale with no separate listing fee, while Etsy's combined listing, transaction, and processing fees total roughly 11% on a typical sale. Etsy is cheaper on a per-sale basis for most price points. However, Amazon Handmade requires a Professional selling plan at $39.99/month (though this fee is currently waived for approved Handmade sellers), and it gives you access to Amazon's significantly larger customer base. If volume is your priority and you can maintain healthy margins at a 15% fee rate, Amazon Handmade is worth testing alongside your Etsy shop.
Does Etsy charge fees on shipping costs?
Yes. The 6.5% transaction fee applies to the full order total, which includes the shipping price you charge the buyer. For example, if you sell an item for $20 and charge $5 for shipping, the transaction fee is calculated on $25 (= $1.63), not just the $20 item price. This is one of the most commonly overlooked aspects of Etsy's fee structure and a key reason to factor shipping costs into your profit calculations.
What happens to my fees if a buyer requests a refund?
When you issue a full refund through Etsy, the transaction fee (6.5%) and listing fee ($0.20) are credited back to your account. However, Etsy does not refund the payment processing fee (3% + $0.25). On a $30 sale, that means you'd lose $1.15 even after issuing a complete refund. For partial refunds, the transaction fee is adjusted proportionally, but the payment processing fee on the original amount is still retained.
Sources & Methodology
This guide's fee figures are sourced directly from the following Etsy documentation and seller resources:
- Etsy Seller Handbook: Official fee documentation updated for 2026, covering listing fees, transaction fees, and payment processing rates across all supported countries.
- Etsy Payments Fee Schedule: Country-specific payment processing rates as published in Etsy's legal and fee policy pages.
- Etsy Offsite Ads Policy: Terms and conditions for the offsite advertising program, including opt-out eligibility thresholds and commission rates.
- Etsy Plus Feature Page: Current pricing and feature list for the Etsy Plus subscription tier.
- eBay Fee Schedule (2026): Final value fees and insertion fee policies for standard eBay seller accounts.
- Amazon Handmade Seller Central: Referral fee percentages and Professional selling plan pricing for the Handmade category.
- Shopify Pricing Page (2026): Monthly plan costs and transaction fee structures for Shopify Basic, Shopify, and Advanced plans.
All worked examples in this article use the standard US seller fee rates. International sellers should check Etsy's country-specific fee pages for their exact payment processing rates and currency conversion policies. Fee rates are accurate as of March 2026 and are subject to change — we recommend checking Etsy's official Seller Handbook for the most current figures.
Looking for more guidance on launching your Etsy business? Read our complete Etsy shop setup checklist and discover the best products to sell on Etsy in 2026.