How Much Does It Cost to Run an Etsy Shop? (2025 Complete Fee Guide)

Running an Etsy shop isn’t free — and the fees add up faster than most sellers expect. Between listing fees, transaction fees, payment processing, and Etsy’s Offsite Ads program, you can lose 15–20% of a sale before you’ve counted a single material cost.

This guide walks through every Etsy fee in 2025 so you know what you’re really paying, with a worked example to show the full picture.

What fees does Etsy charge?

Etsy charges sellers across five main fee categories:

1. Listing fees — charged when you create or renew a listing
2. Transaction fees — charged when you make a sale
3. Payment processing fees — charged by Etsy Payments to process the buyer’s payment
4. Offsite Ads fees — charged when a buyer clicks an Etsy-placed ad and purchases within 30 days
5. Optional subscription fees — Etsy Plus for sellers who want extra shop features

Let’s go through each one.

Listing Fees

Every time you list an item for sale on Etsy, you’re charged a $0.20 listing fee. Listings stay active for four months, or until the item sells.

A few things to keep in mind:

• If a listing expires after four months without selling, Etsy charges another $0.20 to renew it (or you can choose not to renew)
• If you sell a quantity-based listing (e.g., 5 of the same item), you’re charged $0.20 for each unit sold as they renew
• Listing fees apply in all countries where Etsy operates

Example: If you list 50 products in your shop, you’re looking at $10 in listing fees upfront — and another $10 every four months for items that don’t sell.

Transaction Fees

When you make a sale, Etsy charges a 6.5% transaction fee on the total sale amount, including the item price, shipping, and gift wrapping charges.

This fee was raised from 5% to 6.5% in April 2022 and hasn’t changed since.

Example: You sell a handmade candle for $40 with $8 shipping. Etsy’s 6.5% transaction fee is calculated on the full $48 total:

$48 × 6.5% = $3.12 in transaction fees

The transaction fee is deducted automatically from your Etsy Payments balance.

Payment Processing Fees

In addition to the transaction fee, Etsy charges a payment processing fee to handle the actual payment from the buyer. This covers credit card processing, fraud protection, and currency conversion.

Processing fees vary by country. Here are the most common rates:

Example (US seller): On a $48 sale (item + shipping):

$48 × 3% + $0.25 = $1.44 + $0.25 = $1.69 in processing fees

If you sell to international buyers and they pay in a different currency, Etsy also charges a 2.5% currency conversion fee.

Offsite Ads Fees

This is the fee that catches most sellers off guard.

Etsy runs an advertising program called Offsite Ads, placing your listings on Google, Facebook, Instagram, Pinterest, and other platforms. If a buyer clicks one of those ads and purchases from your shop within 30 days, Etsy charges you a fee.

Here’s how it works:

• Sellers with less than $10,000 USD in revenue in the past 365 days: 15% Offsite Ads fee. Participation is optional — you can opt out in your shop settings.
• Sellers with $10,000 USD or more in revenue in the past 365 days: 12% Offsite Ads fee. Participation is mandatory and you cannot opt out.

The Offsite Ads fee applies on top of your regular transaction fee and payment processing fee. This means on a sale driven by an Offsite Ad, you’re paying:

• 6.5% transaction fee
• 3%+ payment processing fee
• 12–15% Offsite Ads fee

That’s up to 24.5%+ of the sale, before counting your cost of goods.

Example: A buyer clicks an Offsite Ad for your $80 ring and purchases it. As a seller under $10K annual revenue, you’d pay:

• 6.5% transaction fee: $5.20
• 3% + $0.25 processing: $2.65
• 15% Offsite Ads fee: $12.00
• Total fees: $19.85 (24.8% of the sale)

If you’re under the $10K threshold and find this program isn’t working for you, it’s worth opting out in Shop Manager → Settings → Offsite Ads.

Optional: Etsy Plus Subscription

Etsy offers an optional Etsy Plus subscription for $10/month (billed monthly). It’s not required to run a shop, but it includes:

• 15 listing credits per month ($3 value)
• $5 in Etsy Ads credit per month
• Advanced shop customisation (custom shop URL, banner, featured listings)
• Restock alerts (buyers can request notification when sold-out items are available again)

For most sellers, Etsy Plus doesn’t offer enough value to justify the cost unless you make full use of the credits and customisation features.

Complete cost example: $100 sale

Let’s walk through a realistic example. You’re a US-based seller, your item sells for $85, and you charge $15 shipping — a $100 total sale.

Now add in an Offsite Ads scenario (15% fee for sellers under $10K/year):

And this is before subtracting your materials, labor, and shipping costs.

Other costs to factor into your pricing

Etsy’s fees are just one part of your total cost to sell. You’ll also need to account for:

Material and labor costs

Your cost of goods sold (COGS) includes:

• The cost of all raw materials used to make each item
• Your time: how long it took to make, at your target hourly wage

For example, if a soap bar takes 20 minutes to make ($15/hour wage = $5 labor) and uses $3 in materials, your COGS is $8 per bar.

If you’re not sure how to calculate this, our free Etsy pricing calculator spreadsheet will walk you through it. For ongoing tracking, Craftybase Etsy inventory software calculates your real-time COGS automatically from your material costs and manufacturing records.

Shipping costs

Shipping costs vary by package weight, size, and destination. If you’re offering “free shipping” to buyers, you’re absorbing those costs — so they still need to be factored into your price.

See also: How to offer free shipping on Etsy without losing money →

Taxes

Etsy collects and remits sales tax on your behalf in states where it’s required as a marketplace facilitator. But you’re still responsible for:

• Reporting your Etsy income on your personal or business tax return
• Calculating and setting aside income tax on your profits
• Self-employment tax (15.3% in the US) on net earnings

Read more: How does Etsy handle Marketplace Facilitator Tax?

How to price your Etsy products to cover all fees

A common mistake is to price based on “what competitors charge” without knowing your own costs. If you don’t know your real COGS, you can’t know whether you’re actually making a profit.

Here’s a straightforward pricing framework:

Step 1: Calculate your COGS. Add material costs + labor costs (your hourly rate × time to make).

Step 2: Add Etsy fees. At a minimum, budget 10–11% of your selling price for listing, transaction, and processing fees. If you’re enrolled in Offsite Ads, budget 22–25%.

Step 3: Apply your target margin. A common rule of thumb for handmade goods is to price at 3× COGS for retail, then check that margin covers your fees.

Step 4: Verify with a real number. Use our free Etsy fee calculator spreadsheet to model the fees across your product range.

Is Etsy worth it for handmade sellers?

Etsy’s fees are high compared to selling on your own website — but Etsy gives you access to a marketplace with over 90 million active buyers who are actively looking for handmade goods. That built-in audience has real value, especially when you’re starting out.

The key is going in with eyes open. Know your costs, price accordingly, and keep an eye on which sales are coming through Offsite Ads so you can evaluate whether the program is worth it for your shop.

For sellers with strong direct traffic or an established customer base, adding a Shopify store alongside Etsy is worth considering — lower fees, more control, and you own the customer relationship.

Frequently Asked Questions

What’s Next?

Now you know exactly what Etsy charges in 2025, you can factor those fees into your pricing from day one — not discover them after your first few sales.

For more help with pricing your handmade products, see our guides on how to calculate your cost of goods sold and how to determine your desired profit margin.

Also check out our Ultimate Guide to Etsy Inventory Management for ways to keep your stock levels under control as your shop grows.