Selling on Etsy involves numerous fees. For some eCommerce and online businesses, they might be worth paying for the advantage of selling on such a popular platform. On the other hand, if you apply with Payment Nerds or another reputable payment processor, we can help your business operate on far fewer fees, making it more feasible for you to succeed.
Below, we offer a comprehensive breakdown of these fees to help you navigate the platform more effectively. Understanding these costs will allow you to price your products strategically and maximize your profits.
The Full List of Etsy Seller Fees
Many eCommerce business owners will ask, “What are the seller fees for Etsy used for?” Knowing the answer to this can help reveal how feasible it is to sell on Etsy’s platform. That’s why we are sharing this breakdown of all the charges sellers may encounter:
Advertising/Promotional Fee
First, we have Etsy’s advertising fee, which works like most online advertising platforms like Google Ads: you set a daily budget to pay for promotion on Etsy’s platform. The amount can vary and is often charged on a recurring basis[1].
On the other hand, Etsy’s Offsite Ads program automatically advertises your products across platforms such as Google, Facebook, and Pinterest. This program charges a fee only if a buyer clicks on your ad and makes a purchase within 30 days. The fee ranges from 12% to 15% of the sale price, including shipping and taxes. Sellers with over $10,000 in annual Etsy sales pay 12%, while others pay 15%[1].
Currency Conversion Fee
For sellers listing items in a currency different from their bank account, Etsy applies a 2.5% currency conversion fee. This ensures buyers see pricing in their local currency, but it comes at a cost to sellers. To help avoid this fee whenever possible, you should set your shop’s currency to match your bank account[1].
In-Person Selling Fee
Etsy offers integration with Square for sellers who also sell at physical markets or pop-ups. Paying for this integration helps keep inventory synced between online and offline sales[1].
While there’s no additional fee for using Square with Etsy, you will be charged a $0.20 renewal fee for selling items with multiple quantities on Square, just as on Etsy. This is if you have synced your listings with Square’s platform. Additionally, non-synced listings will be charged a $0.20 transaction fee, which appears as a “Square manual” fee on your payment account statement[1].
Listing Fee
The $0.20 listing fee is a flat rate applied to each item in your shop. The fee is charged per item quantity, meaning if you sell multiples of the same product, you’ll be charged $0.20 for each one sold. Listings remain active for four months unless sold or manually renewed[1].
Another thing to remember is that listings renew automatically if the item remains unsold after four months, which can lead to additional fees if you’re not monitoring inactive inventory. To stay efficient and save, regularly review your listings to deactivate slow-moving or seasonal products and reduce unnecessary fees.
Pattern Fee
Etsy’s Pattern service allows you to create a standalone branded website while still leveraging Etsy’s platform. The service cost is $15 per month, with optional costs for a custom domain[1]. Pattern offers a way to build your business’s brand identity while remaining within Etsy’s payment infrastructure. However, the added cost may not be worthwhile if your business experiences lower sales volumes.
Payment Processing Fee
Etsy charges a payment processing fee for credit card and payment gateway services. The exact rate varies by the location of your bank account in the U.S. [1]. This fee applies to all orders, including refunds, and is assessed according to the total sale amount, including shipping and taxes. This makes it crucial to have it free to review. Whether on Etsy or not, remember that you will always have to pay merchant processing fees one way or another.
Regulatory Operating Fee
Introduced in recent years, Etsy’s Regulatory Operating Fee applies to sellers in specific countries to cover compliance costs associated with local laws. Fees range from 0.29% to 2.27%, depending on the country and region, particularly in European and some Eastern countries, as well as Canada[2]. If you’re selling internationally, stay informed about changes in Etsy’s fee structures, as these fees could increase.
Set-Up Fee
To open a shop, you may be required to pay a one-time set-up fee. This fee covers the overall setup process for your online store and ensures it works properly within Etsy’s platform[1].
Shipping Fee
Certain sellers in specific locations can purchase shipping labels through Etsy. The cost of these labels largely varies according to the carrier, the weight, dimensions, and other details of the package being sent. This fee essentially pays for shipping via Etsy Payments[1].
Subscription Fee
Etsy Plus is an optional subscription plan that costs $10 per month. For sellers in good standing on Etsy’s platform, the plan offers perks like customizable shop banners, free or discounted domain names, and credits for listings and ads[1]. The benefits may not outweigh the cost for newer sellers. However, for established sellers focused on branding, Etsy Plus can enhance their shop’s professionalism.
Transaction Fee
The 6.5% transaction fee is one of the most significant costs for Etsy sellers. This fee applies to the total amount the buyer pays, including shipping and taxes[1]. However, in the US, this doesn’t apply to sales tax, while for sellers in the US, it does apply to listing prices, shipping, and gift-wrapping fees. As one of the largest deductions, the transaction fee should be a primary consideration when pricing your products.
Example: How Much Are Etsy Seller Fees From a $100 Sale
It’s important to get some clarity as to how much you really earn when selling through Etsy’s platform. To make it easier, let’s break down the costs based on a hypothetical $100 sale from a shop located in the US that largely caters to a US-only market. Here is what you’ll largely see:
- Transaction Fee (6.5%): $6.50
- Payment Processing Fee (3% + $0.25): $3.25
- Listing Fee: $0.20
- Shipping Fee (5% on $10 shipping): $0.50

Your total in fees would be $10.45, while your net earnings from the $100 sale would be $89.55. Given this, you may need to consider pricing strategies that cover these costs or research online selling platforms other than Etsy to ensure you balance selling fairly priced items to your customers and listing them on a popular and feasible platform.
Conclusion
While Etsy’s fee structure is roughly transparent, it can significantly impact a seller’s bottom line. By understanding each fee and planning accordingly, you can better manage costs and optimize profits. Whether you’re just starting out or scaling your shop, factor these expenses into your pricing strategy to ensure a sustainable business model.
For sellers looking to reduce costs and explore alternatives, platforms like Payment Nerds offer eCommerce payment solutions designed to streamline payment processing. In addition, if you are looking for help managing your business as a large and growing enterprise, consider our online invoicing solutions.
Payment Nerds can help you at every point of your business, whether you need help with online customers, vendors, or suppliers. Start transforming your business today through Payment Nerds.
Source
- Etsy. “Fees & Payment Policy.” https://www.etsy.com/legal/fees. Accessed December 20, 2024.
- Etsy Help. “What is Regulatory Operating Fee?” https://help.etsy.com/hc/en-us/articles/1500011073202-What-is-a-Regulatory-Operating-Fee?segment=selling. Accessed December 20, 2024.