How Much Does It Cost to Start and Sell on Etsy?

Tags: Etsy, Printify, Ecommerce, Side Hustle
08 December 2023

If you're considering setting up an Etsy shop or if you're already an active Etsy seller, you might be wondering about the costs involved.

In this article, we will break down the various Etsy fees associated with it and provide you with a secret tip to help you price your items for profit. Yay!

Don't miss the breakdown of all the fees with an example below.

Is There A Monthly Fee For Etsy?

Starting an Etsy shop is completely free.

But wait - here's the caveat.

When you list a new item in your shop, you will be charged a fee of 20 cents per listing.

So, how long do Etsy listings last?

These listings renew every four months, at which point you will be charged again.

Pro Tip: Set up your products to automatically renew - so you don't have to go through the manual process. Which is a headache - trust me.

How Not To Get Your Etsy Account Deactivated

Enroll in Etsy's automatic billing.

So that the fee will be deducted automatically from your account.

Alternatively, you can disable auto-billing and pay your bill manually.

It's important to note that missing a payment may result in your shop being deactivated.

How Much Does Etsy Take From A Sale?

When a customer purchases from your Etsy shop, you will be charged a transaction fee of 6.5% of the price they paid for the item.

Yes - that is a lot. But, that's the price you pay to set up your shop at a reasonable cost. Because setting up a Shopify shop might not be suitable for all beginners, while they are just testing the waters.

This fee also includes any charges for delivery, paid gift-wrapping services, or paid variations. It's essential to factor in this fee when pricing your items.

How Much Does It Cost To Ad On Etsy?

Etsy ads are always a topic of controversy.

Etsy offers an option to run ads for your products within the platform itself.

If you choose to use Etsy ads, you can set a daily maximum budget for your product ads, which will be displayed on Etsy search pages.

The amount you spend on ads is entirely up to you - but for beginners, I'd recommend setting up a $1/day budget. This will not put a hole in your pocket, and will also give you a boost to test your e-commerce products.

Etsy Off-Site Ads

Etsy also provides off-site ads that run on platforms like Facebook, Pinterest, and Google.

With off-site ads, fees are only charged if one of your ads directly results in a sale. The fee for off-site ads is 15% of the total sale.

Note: if a buyer clicks on one of your ads and then makes a purchase from your shop within 30 days, you will still be charged an advertising fee of 15%.

And here's where it gets more interesting.

If you are making less than $10,000 USD on Etsy sales, within a 365-day window - off-site ads are optional and can be turned off.

Etsy shop - earn 40 free listings

But, if you make over $10,000 USD within that time frame, participation in off-site ads becomes mandatory for the lifetime of your shop.

Even if your sales drop significantly in subsequent years, you will still be required to participate. The fee for mandatory off-site ads is reduced to 12% per sale.

How Much Are Etsy Payment Processing Fees?

If your connected bank is located in a country where Etsy offers Etsy Payments, you will be required to use their payment system for handling the transfer of money from your customer's bank accounts to yours.

The fee for Etsy Payments in the US is 3% of the total amount, plus a flat fee of 25 cents per order. Fees may vary for sellers outside of the US.

I know - so many fees!

So, let me show you the breakdown of Etsy fees below.

How Much Does Etsy Take From A 100 Sale?

Let's break down the fees with an example.

Suppose you're selling coffee mugs on Etsy for $90, with $10 for shipping, making the total price $100.

Here's how the fees would apply:

  • Listing fee: 20 cents
  • Transaction fee (6.5%): $6.5
  • Etsy Payments fee (3% + 25 cents): $3.35

So, in total, Etsy would take a fee of $9.95 on a $100 sale in the US.

With that in mind - all you need to do is price your products optimally to not lose money.

Here's a tool that can simplify product pricing for you 👇

Etsy Pricing Profit Calculator - Free Tool

When running an online business, it is essential to keep tabs on your profits and costs. Or else you might think you are making sales - but you could be spilling out of your pockets.

So, to ensure you are running a profitable e-commerce business, you can use Printify's Profit Calculator.

This tool allows you to factor in the price of your item, shipping costs, and your selling price. And check your potential profits. If you're not satisfied with the numbers, you can adjust your pricing until it aligns with your desired profit margin.

You can sign up for Printify's free account here and start your Etsy print-on-demand business today.

Try Printify For Free

Final Thoughts

Despite the fees, Etsy remains one of the most affordable platforms to host your products online.

But remember - when selling on Etsy, it's important to consider the various fees involved and price your items accordingly.

While Etsy's fees may change over time, by using tools like Printify's Profit Calculator and focusing on quality, branding, and customer service, you can set yourself up for success on Etsy.

Further Resources We Recommend

Try Etsy For Free
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