Full breakdown of Etsy fees per sale — listing, transaction, payment processing, and Offsite Ads. See your real take-home instantly.
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Item Price$38.00
$1$250$500
Shipping Charged to Buyer$5.50
$0$25$50
Your Production Cost (COGS)$9.00
$0$100$200
Actual Shipping Cost to Send$4.00
$0$20$40
Offsite Ads
Net Profit per Sale
$17.52
after all Etsy fees and costs
Total fees: $8.98 (20.8%) · You keep $17.52 of a $38 sale
-$0.20
Listing Fee
-$2.83
Transaction (6.5%)
-$1.39
Payment Processing
$17.52
Your Net Profit
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The Full Etsy Fee Breakdown for Sellers
Etsy's fee structure is more complex than most sellers realize at first. The transaction fee of 6.5% applies to the full amount collected — item price plus shipping. So if you charge $38 + $5.50 shipping, the 6.5% applies to $43.50, not just $38. That's $2.83 in transaction fees, not $2.47.
Payment processing (Etsy Payments, which is mandatory in most countries) adds another 3% + $0.25 per transaction. For a $43.50 total transaction: $1.31 + $0.25 = $1.56. Add the $0.20 listing fee and you're at $4.59 in Etsy-specific fees before Offsite Ads.
Digital products are the exception — no shipping cost in or out, no materials, just COGS of $0 or nearly zero. A $15 digital printable nets roughly $11.50 after fees, a 77% margin. This is why digital products dominate Etsy's top earners list.
What percentage does Etsy take?
Total Etsy fees typically run 20–30% of revenue: 6.5% transaction + 3% + $0.25 payment processing + $0.20 listing + optional 12–15% Offsite Ads. On a $40 sale, expect $8–$12 in total fees before your production cost.
Does Etsy charge fees on shipping?
Yes — the 6.5% transaction fee applies to the full transaction including shipping. This catches many new sellers off guard. If you charge $5 for shipping, $0.33 of that goes to Etsy as a transaction fee.
How do I maximize Etsy profit?
Build fees into your pricing (don't sell at cost + hope fees leave profit). Consider offering free shipping by rolling shipping into item price (buyers prefer it and it helps search ranking). Sell digital products where possible — no COGS or shipping means much higher margins.
What is a good profit margin on Etsy?
Physical handmade goods: 30–50% net margin is solid. Under 20% is risky given time investment. Digital products: 70–85% net margin is achievable. Factor your own labor at a fair hourly rate — many Etsy sellers unknowingly pay themselves below minimum wage.
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