Due to the number of different services and payment structures that Etsy now offers, it can be difficult to get a full idea of the costs involved in selling your handmade products on Etsy. Our blog post details the various fees and charges so that you can interpret your next Etsy bill with ease.
Note: all fees mentioned in this post are current as of July 2018 and are in US dollars unless indicated otherwise.
Etsy Listing Fees
Let's start with the easy one: Listing Fees. These are fees that are directly related to your listings on Etsy - they are generated each time you list, relist and renew your listings, either manually or via the auto-renew settings. You'll want to think of these like advertising fees to appear on the marketplace as Etsy is essentially charging you a fee to display your product ads on their site. Due to this, listing fees need to be paid regardless of sale.
Listing Fee: Listing fees are 20c USD per listing. This provides 4 months of listing on Etsy for a single quantity of the product. When you sell your product, your listing will automatically be marked as sold and you will need to relist it if you wish to sell more of the same product via this listing. If you don't sell your item during the 4 month window, your listing will expire.
If you have auto-renew switched on for your listing, it will automatically be renewed at an additional cost of 20c each time a sale is made or once you hit the 4 month mark.
Listing Renewal Fee / Listing Auto Renewal Fee: This fee is charged by Etsy for renewing a listing on Etsy. The charge will indicate the status of the listing before the renewal (i.e. active, sold or expired) and also if this was performed via an auto-renewal setting. The fee is exactly the same as the usual listing fee.
Private Listing Seller Fee: This is the fee charged for creating a private listing for a customer. The fee is exactly the same as the usual listing fee.
Listing Qty Increase Fee: A listing fee will be generated for each quantity sold of your product. This fee is charged when the additional items are sold, rather than when listed. For example, if you list a quantity of 5 for a necklace listing you will be charged 20c. Each necklace you sell after the first one will then generate an additional 20c charge.
Processing Fees VAT: If you are required to pay VAT for your fees, this tax will be applied to your listing fee and applied to your bill.
Etsy Transaction Fees
These are fees directly related to the sale of your item on Etsy - these are essentially commission payments that you make to Etsy to sell your products on their online marketplace.
Etsy charges 5% on the total item price (recently increased from 3.5%), which includes any shipping costs that you have charged the customer. Pattern sales are exempt from Etsy Transaction Fees.
Seller Fee for Sold Item(s) / Transaction Quantity Fee: This is the fee charged by Etsy for transacting the sale of an item, excluding shipping.
Shipping Transaction Fee: This is the fee charged by Etsy for the shipping component of the order.
Processing Fees VAT: If you are required to pay VAT, this tax will be applied to your transaction fee and applied to your bill.
Shipping Label Fee: This is a fee relating to the purchase of a USPS, FedEx and Canada Post shipping label generated through Etsy. Costs are calculated based on the origin and the destination of the package being sent. Fees relating to shipping labels should usually be accounted for as a postage expense.
Shipping Label Insurance / Shipping Label Coverage: This is the insurance portion paid for an Etsy Shipping Label. For Canada Post, this is called "Postage Coverage" rather than insurance.
Shipping Label Adjustment: Any adjustments made to the final cost of the Etsy Shipping Label.
Shipping Label Adjustment Taxes: Any taxes relating to the shipping label adjustment.
Direct Checkout Fees
For each sale made via Etsy Direct Checkout, Etsy also charges a percentage of the total sale price and an additional flat fee per order to process the payment. This is in addition to listing and transaction fees.
The percentage and flat fee varies based on where your business is located. For example, if you are based in the US, your Direct Checkout Fees would be calculated at 3% + 0.25 USD per order. For sellers in the UK, the fee is 4% + 0.20 GBP.
Pattern is the name of the additional Etsy channel that enables you to connect a domain name to a customised view of your listings.
Pattern Domain Name Registration Fee: If you purchased your domain name via Etsy Pattern, this is the fee charged for this service.
Pattern Subscription Fee: This is the monthly subscription fee for Etsy Pattern.
Pattern Subscription Tax: This is the taxable component of the monthly subscription fee for Etsy pattern.
Pattern WHOIS Domain Privacy Fee: The fee charged by Etsy for making personal details for your Pattern domain private on WHOIS.
Pattern Domain renewal fee: When your domain name is up for renewal, you will be billed this fee.
Gift Wrap Fee
Sellers can optionally decide to add a small fee to their order to cover the costs of gift wrapping their items. This fee also incurs a transaction fee and is billed seperately to your order transaction fee as a "Gift Wrap Fee".
Seller Subscription Packages
As of July 2018, Etsy offers a range of subscription packages. These are billed on a monthly basis and provide the seller with additional features.
Etsy Plus Subscription: If you have subscribed to Etsy Plus, this charge will be billed each month. Currently, Etsy Plus is $10 per month and it is slated to go up to $20 in January next year.
Etsy Advertising Fees
These fees are when you purchase google advertising, category highlight advertising, search ads or the old Showcase and Alchemy type advertising spaces.
Google Shopping Ads: Etsy offers the ability to display your listings on Google Shopping. You get charged based on how many "clicks" you receive from google to your listing.
Promoted Listing Fee / Seller fee for Search Ads: Promoted Listings can be purchased that highlights your products within Etsy for specified search results.
Targeted / Promoted Offers: Using the Sales and Coupons manager in your shop, you can automatically send special offer emails to shoppers interested in your items. This fee is $0.10 USD per email and is charged monthly based on the number of emails sent within the time period.
Square In Person "Quicksale" Fees: When listings are not synced from a seller’s Etsy shop inventory to Square, Etsy will charge $0.20 USD per transaction as a "Square Quicksale Fee".
Due to new international laws, Etsy as a marketplace is now regulated to collect and remit taxes for several countries and some US states (Washington and Pennsylvania). This means that the relevant tax will be added to your sale automatically as part of the checkout process. This tax and then will be billed to you as a tax fee so that Etsy can pass it on to the relevant authority.
Sales Tax: This is incurred when a sale you have made is required to have sales tax paid on it.
VAT Tax Fee / VAT Seller Services: This is the tax calculated on a sold digital download or physical item to a buyer in VAT-eligible country. This is also applied to countries such as Australia to represent GST taken on eligible Etsy orders.
Deposit currency conversion
If you list items in a currency that is different to your bank account's currency (i.e. USD and your bank is in CAD), Etsy converts your funds from Etsy Payments to your bank's currency on your behalf. This is applied at 2.5% over the current market rate.
Etsy Wholesale has recently been discontinued, however if you used this platform previously, you may have had the following fees generated:
Wholesale Setup Fee: This was a seller fee for joining the wholesale marketplace.
Wholesale Contract Fee: The fee charged for Etsy Wholesale contractual services.
Wholesale Transaction Fee: The fee for selling an item via the Wholesale marketplace.