It costs between 12 and ~15% of your sale value to sell on Etsy. The ranges is due to there being different fees depending on your location and whether your store currency matches your banks’ currency.
How Much Does It Cost To Sell On Etsy?
You’ve finally decided to take the plunge and start selling your handmade goods online. But before you set up shop, you need to know how much it’s going to cost you and understand all the selling fees.
When it comes to costs, Etsy is a bit different than other eCommerce platforms. Here’s everything you need to know about the fees associated with selling on Etsy.
There are three main types of fees that you’ll need to be aware of when selling on Etsy:
- Listing fee: $0.20 for listing your item;
- A transaction fee of 6.5%
- Payment processing fee of between 3 and 5% depending on your store’s location;
- Other minor fees such as international regulatory operating fee for international sellers.
We’ll break down each of these below.
Opening an Etsy Store
The good news is that it is free to open an Etsy Shop, but you do need to list one item when opening a store.
It costs $0.20 to list an item on Etsy and that lists the item for 4 months. If you do not sell the item, you will need to pay another $0.20 renewal fee to relist it on Etsy.
You can set the item to auto-renew if you want the item to stay on Etsy for longer than 4 months.
In the UK the listing fee is £0.17 (plus VAT).
If you make a sale Etsy charges you the Listing Fee to relist the item if you have set it to auto-renew.
Etsy Transaction Fees:
On 11th April 2022 Etsy increased its transaction fee from 5% to 6.5% which caused an uproar, but it is still a cheap platform to sell on.
The transaction fee is charged on the total sale price of each listing that sells (this includes shipping charges).
So, if you sell an item for $100 with $10 in shipping charges, your transaction fee would be $7.15 ($100 x 0.065 + $10 x 0.065).
Etsy Payment Processing Fees:
Etsy allows buyers to use Etsy payments and pay with credit or debit cards, Etsy Gift Cards, or PayPal.
For transactions processed through Direct Checkout, for US customers Etsy charges a 3% + $0.25 processing fee on the total sale price (this includes shipping charges).
So, if you sell an item for $100 with $10 in shipping charges, your processing fee would be $3.75 ($100 x 0.03 + $10 x 0.03 + $0.25).
If you process payments through PayPal alone, there is no additional fee from Etsy beyond PayPal’s standard 2.9% + $0.30 per-transaction fee.
Etsy charges different payment processing fees in countries outside of the US. For example it is 4% + £0.20 in the UK.
Regulatory Operating Fee
As of the 1st July 2021 Etsy introduced an additional charge for sellers in certain European countries to offset the increased regulatory requirements and cost to Etsy of selling in those countries.
The fee called “Regulatory Operating fee” for the UK is 0.25% which is charged on the product price plus postage price of items sold.
Currency Conversion Fee
If you set your shops currency to a currency that is different to your bank account, Etsy sellers are charged 2.5% currency conversion fee and you are at the mercy of their exchange rates which may not be that competitive.
If you are unlucky enough to live in a country like the UK, all Etsy fees are subject to VAT (20% at time of writing).
The Cost of Etsy Ads
Etsy offers an advertising option to Etsy sellers. If you turn on Etsy ads it costs about $0.20 to $0.50 per click and you can set your daily spend and the listings that you want to advertise.
Cost of Offsite Ads
Etsy advertises products on your behalf and you only pay a fee if the advertising results in a purchase. If you earn less that $10,000 you can opt out, if your store earns more than that you have no choice.
Offsite ads are charged at 15% or 12% if your store’s revenue is greater than $10,000 per year.
Overall, it doesn’t cost very much to sell on Etsy compared to other ecommerce platforms—especially when you consider all of the built-in marketing and promotional tools that come with having an Etsy store.
With careful planning and consideration of all of the potential total cost involved, selling on Etsy can be a very lucrative way to make some extra money or even replace your full-time income!
A great way of having an online store, without having to worry about driving traffic.
How to Start Your Etsy Store
Now that you understand the fees involved in running an Etsy store, below you’ll find some tips on how to get going.
Creating an Etsy Store
From there, you’ll be prompted to choose your shop language, country, and currency, as well as come up with a shop name. Once you’ve done that, you’re ready to start listing items!
Listing Items in Your Shop
To list an item in your new Etsy shop, click the ” Sell on Etsy” link at the top of the site.
Then, click “Add a Listing.” From there, you’ll be able to select up to 10 photos of your product from your computer, tablet, or phone.
Note: If you are using Print On Demand you can create the product within your chosen suppliers site and then publish it to Etsy then add additional mock-ups and info graphics as required.
After that, you’ll add a title and description for your product, choose some relevant tags and categories, select who will make the product (you or someone else), set the price, shipping cost and quantity available, specify shipping details, and finally review and publish your listing! Phew!
That was a lot of steps…but don’t worry, it gets easier with practice. 😉
Promoting Your Shop
Once you’ve got your shop all set up and listed some products, it’s time to start promoting!
There are lots of ways to do this. First of all, make sure you have share buttons enabled in your shop so that visitors can easily share your listings on social media platforms like Facebook, Pinterest, and Twitter.
You should also share your listings on your own personal social media accounts—and don’t forget to include links back to your Etsy shop!
In addition, consider creating some attention-grabbing banner ads and placing them on websites that focus on similar topics as yours.
For example, if you sell handmade jewelry made from sustainable materials, search for websites about green living or eco-friendly fashion—chances are they’ll be happy to feature one of your banner ads in exchange for a link back to their site.
And last but not least, try reaching out to bloggers or influencers who write about topics related to what you sell and see if they’d be interested in writing a review or featuring one of your products in a blog post or social media roundup.
Some influences will post a story and image wearing your product and all you have to do is send them a free item. This can be a cost effective way of promoting your products.
Ok! That was a lot of information about selling on Etsy! Now that we’ve gone over all the basics—from setting up your shop to promoting your listings—you should have everything you need to get started.
So what are you waiting for? Start listing those products and watch the sales roll in! 💰