Running an Etsy shop can be rewarding, but understanding how fees affect your profit is essential. In 2025, Etsy has kept most of its core fees consistent but updated rates in some regions and categories. This guide breaks down every Etsy fee you’ll encounter, explains why they exist, and shows a real example to help you calculate your true profit.
What Are Etsy Fees?
Etsy fees are the platform’s charges for listing, selling, and processing payments for your products. These fees support Etsy’s marketplace operations, marketing, and secure transaction systems.
As of 2025, here’s a quick overview of the latest standard rates:
- Listing Fee: USD $0.20 per item (paid when you publish or renew a listing)
- Transaction Fee: 6.5% of the item price plus shipping and gift wrapping
- Payment Processing Fee (U.S.): 3% + $0.25 per transaction (varies by country)
- Offsite Ads Fee: 12% to 15%, depending on your shop’s annual sales and participation status
Types of Fees
1. Listing Fee
You pay a $0.20 fee each time you list or renew an item. Listings last for four months or until the product sells. If you sell multiple quantities, Etsy charges this fee per item sold.
Note: Even if your item doesn’t sell, the listing fee is still charged upon renewal. One experienced seller explained it simply:
“I list one coffee mug and pay $0.20. If I sell five mugs, I pay five listing fees.”
2. Transaction Fee
Etsy charges 6.5% on the total order amount, including product price, shipping, and optional gift wrap. This fee applies when the buyer completes the purchase.
Many sellers on forums note that this often surprises new shop owners because the transaction fee also applies to shipping:
“You still pay transaction and processing fees on shipping. Otherwise, sellers would set item prices low and inflate shipping to avoid fees.”
3. Payment Processing Fee
Etsy Payments collects the sale and charges a processing fee. In the U.S. the charge is 3% + $0.25 per transaction. Other countries have slightly different percentages. This fee covers payment routing and card handling.
4. Offsite Ads Fee
If a buyer clicks your product through Etsy’s paid ads and buys within 30 days, you pay an offsite ads fee. The rates work like this:
- 15% for shops with under USD $10,000 in the past year.
- 12% for shops with at least USD $10,000 in the past year.
More details sellers report:
- The fee caps at USD $100 per order.
- Many sellers find they enroll automatically after crossing the $10,000 threshold.
- One ad click can lead to many attributed purchases inside the 30-day window.
Why Etsy Charges These Fees
Etsy uses fees to run site infrastructure and provide payment security. Fees also fund marketing that brings buyers to the platform. Small sellers gain broad audience access that would cost much more to reach independently.
Seller discussions point out specific effects. Offsite ad fees cut into margins on low-priced items, especially when combined with transaction and processing fees. In 2025 Etsy removed the option to add separate handling or packaging fees in calculated shipping. Sellers now include those costs in product or shipping prices.
Example: Real Cost Breakdown on a $50 Product
Suppose you sell a handmade necklace for $50 and charge $5 for shipping.
| Fee Type | Rate | Cost |
|---|---|---|
| Listing Fee | $0.20 | $0.20 |
| Transaction Fee | 6.5% of $55 | $3.58 |
| Processing Fee | 3% + $0.25 | $1.90 |
| Total Fees | $5.68 |
Net revenue after Etsy fees equals $44.32. Subtract product cost, packaging, and shipping to find final profit.
Tip: Use our Etsy Fee Calculator to check your profit instantly and see how pricing or shipping changes affect your margin.
Addition Note: If the sale came through an offsite ad and your shop is under the $10,000 threshold, add a 15% offsite ad fee on the $55. That fee equals about $8.25 and raises total fees to nearly $14.
Country & Other Variable Fees
Many sellers operate across borders. Fees and charges vary by region and setup.
- Currency conversion typically adds about 2.5% when payment currency differs.
- Some countries apply VAT or digital service taxes on platform fees.
- With handling fees removed, sellers must bake packaging and labor into item or shipping prices.
Review your payment account settings and local tax rules to spot any region-specific charges.
Final Thoughts
Understanding Etsy fees in 2025 helps you price items to keep a healthy margin. The fee mix can look complex, but a clear price plan and a calculator make profit decisions simple. Stay aware of policy updates and forum discussions that affect small sellers.
Next, read: How Etsy Transaction Fees Work
FAQ: Etsy Fees 2025
1. Are Etsy fees tax deductible?
Yes. Etsy fees qualify as business expenses in most regions and reduce taxable income. Confirm details with a local tax professional.
2. Do Etsy fees apply to shipping costs?
Yes. The 6.5% transaction fee applies to the total order value, including shipping.
3. Does Etsy charge fees on refunds?
When you refund a buyer, Etsy usually returns part of the transaction fee. The processing fee may not return in full.
4. Are there hidden Etsy fees?
No hidden fees. Expect currency conversion, offsite ads, and shipping label costs where they apply.
5. How can I reduce Etsy fees?
Include fees in your price, test free shipping options, disable offsite ads when they underperform, and check shipping profiles often.
