Since its launch in 2005, Etsy has become one of the most accessible marketplaces for setting up and hosting a print-on-demand store. Often referred to as a crafter’s paradise, Etsy connects artists and creative entrepreneurs with a global audience.
Its user-friendly platform makes it perfect for beginners looking to start their ecommerce journey without a hefty upfront investment. That said, getting a handle on Etsy’s fee structure can be challenging.
Today we’re answering the question “how much does Etsy take per sale,” breaking down the fee structure, and looking at other potential expenses.
Sounds good? Let’s roll.
What kind of fees does Etsy charge?
Etsy’s fee structure includes several types of charges that can impact your overall profit margins.
Listing fees
There’s a mandatory listing fee when you add new items to your Etsy store. This fee is $0.20 per product and enables each item to be registered for a span of 4 months. During this time, you can modify the product without any additional charges. Etsy’s automatic renewal feature will renew your listings at the end of the four-month period, charging $0.20 each time.
Should you sell an item and wish to keep it listed, you’ll need to pay the $0.20 listing fee each time you relist it. Renewed listings retain their original view count, favorites, and website address.
The listing fee can appear in several ways on your payment account:
Listing fee: The initial fee for adding a new item for 4 months
Auto-renew expired: Automatic renewal fee for unsold stock items after 4 months (you can disable auto-renewal in the listings settings menu to renew manually)
Auto-renew sold: Automatic fee for selling extra quantities of items (more than one listed item)
Multi-quantity: Fee for selling multiple variations of the same item in one payment transaction
Private listing: Fee for a private sale to a designated buyer, unlisted to the public
The Etsy listing fee is a non-refundable charge for hosting your listings on the platform. Whether the item sells or not, the fee remains applicable. For instance, if you list 10 items, you will be charged $2 in listing fees.
Transaction fees
Etsy collects a 6.5% transaction fee on every sale. This fee is automatically processed for Etsy Payments users when a customer completes a purchase and is applied to the total cost of the product, including shipping, gift wrapping, personalization, or any other add-ons.
For example, if you sell an item for $20 with $5 shipping, Etsy will deduct $1.62 as transaction fees. This includes $1.30 (6.5%) for the product price and $0.32 (6.5%) for the shipping fee.
The fee is always charged in the currency you list your items, regardless of where your business operates. For instance, if you list your items in USD but operate in Australia, the fee is 6.5% of the USD price. If you list in AUD, it’s 6.5% of the AUD price.
In the US and Canada, the 6.5% fee only applies to sales tax if it’s included in the listing price. For sellers outside the US and Canada, mandatory sales tax must be included in the prices, and the 6.5% transaction fee will apply to this tax as well as to shipping and gift-wrapping fees.
Source: Paper and Spark
Unlike the listing fee, which is paid upfront, the transaction fee is only deducted when your items sell. If a listing expires or is removed before a sale, no transaction fee is applied.
Payment processing fees
Whenever you make a sale on Etsy, a payment processing fee is subtracted. These fees differ based on your region’s sales tax or VAT and the payment processing service used. Etsy Payments, the platform’s internal system, applies a fixed rate plus a percentage, ranging from 3% to 4.5% of the total sale price.
In the US, the payment processing fee is 3% plus $0.25. For other countries, it’s best to consult the Etsy Help Center for specific rates. Most sellers use Etsy Payments to receive funds, allowing them to accept a variety of payment methods like credit and debit cards, Apple Pay, bank transfers, and Etsy gift cards.
If you’re ineligible for Etsy Payments, PayPal is an alternative, offering comparable fees that also vary by region. Details on PayPal’s fees can be found on their website.
Payment fees are only charged when a sale is made. If a listing expires or is removed before selling, no payment fee is applied.
Region-specific fees
Depending on the seller’s region, Etsy may apply extra fees based on the listing currency, applicable taxes, and platform operations.
VAT
In the European Union and some other countries, Etsy sellers must pay value-added tax (VAT) on the total price paid by the buyer for each Etsy listing. VAT is also applied to payment processing fees in eligible countries—sellers can check Etsy’s Help page to find out if their country requires additional taxes.
Sales tax
Etsy handles sales tax collection on a monthly basis for most US territories, sending the taxes to government authorities. The sales tax is calculated and detailed in the seller’s Etsy Payments account under the Sales and Fees section.
Sellers have the option to opt out of this service and manage tax remittance independently if they prefer. It’s recommended to verify the specific regional sales tax requirements applicable to your listings in the US.
Even though Etsy can manage VAT and sales tax fees on behalf of sellers, issuing a downloadable invoice for the specific state or regional taxes that apply to your sales, it’s advisable to reach out to your local tax authority for clarification.
Optional Etsy fees
In addition to the standard fees associated with selling on Etsy, there are several optional expenses that can improve your shop’s visibility, streamline shipping, and offer more customization options.
Etsy ads
Etsy marketing techniques can accommodate various advertising strategies, with Etsy Ads being the primary method for promoting products on the platform.
Through Etsy Ads, selected listings gain visibility by appearing in prominent spots such as the user catalog, search results, and category pages. Listings that attract high demand, whether through optimized tags, superior product quality, or a higher budget per click compared to competitors, will receive greater visibility.
Source: Brand Creators
Etsy Ads operate on a cost-per-click (CPC) basis, meaning you pay each time a shopper clicks on your ad. The average cost-per-click ranges from $0.20 to $0.50. Etsy allows you to set a daily budget for your ads, ranging from $1 to $25, with a higher budget increasing the frequency of your ad appearances.
Offsite ads
Offsite ads differ from Etsy Ads in that you’re only charged when a shopper purchases your product after clicking the ad. These ads are displayed on external sites like Google, Facebook, and Instagram. Clicks from shoppers that don’t result in a sale aren’t charged. A sale is credited to an offsite ad if a user clicks on it and buys the product within 30 days.
The offsite ads fee is 12% for sellers who have made over $10,000 in the past 12 months, and 15% for those who have made less. Sellers who surpass the $10,000 threshold are automatically enrolled in the offsite ads program. The fee is calculated as a percentage of the total sale price, including shipping, gift wrapping, and any applicable taxes.
Source: Etsy
Etsy limits the offsite advertising fee to $100 per sale, regardless of the total sale amount. These ads are open to all sellers, but Etsy evaluates listing performance and relevance to ensure effective targeting.
Read also: Etsy SEO: 5 Must-do Steps to Help You Get Found on Etsy
Shipping label fees
Once your order is ready for shipping, Etsy offers a discounted service for printing postage labels directly from your shop. When a customer receives your product, the packaging is their first impression. Purchasing postage labels can help customize your items and add extra value for the buyer.
Etsy’s shipping labels are available through various carriers, including:
Australia Post
Canada Post
FedEx
Global Postal Shipping
USPS
Royal Mail
The cost of shipping labels depends on factors like the origin, destination, weight, mail class, and dimensions of your package. Etsy provides a 30% discount on average postal shipping fees with USPS shipping. This service is only available to sellers using Etsy Payments or PayPal as a payment method and is applicable in the United States, Canada, the United Kingdom, Australia, and India.
Etsy Pattern
Etsy Pattern is a separate storefront for your Etsy shop, offering improved personalization options such as domain name, website layout, font, color, and logo customization.
The service costs $15/month, following a 30-day trial period. Unlike your Etsy shop, listings on Pattern are free off charge, they don’t expire, and the transaction fee is waived. However, payment processing fees still apply.
Pattern allows you to build your own website, similar to platforms like Shopify, Wix, and Squarespace. One of the main benefits is the ability to sync your Etsy shop listings with your Pattern website and manage both through the Shop Manager in your Etsy dashboard. This integrated approach simplifies the management of your online presence.
Source: Etsy Success
While Pattern provides some customization options, they are somewhat limited. Only a small number of pre-made website layouts and fonts are available. Additionally, you’ll need to purchase a domain name, which means a separate fee (Etsy partners with Tucows for domain registration).
Etsy fee examples
To help you better understand the costs associated with selling on Etsy, we’ve put together a few examples using round numbers. This will give you a clear picture of what to expect with different product price ranges.
Low-priced products
Let’s start with a ceramic mug. It’s a low-priced item, and because of its moderate size, the shipping cost is relatively low.
Source: Printful
Product price for customers: $25
Shipping: $6
Cost of the product for you: $9
Shipping cost: $6
Total product + shipping cost: $15
Listing fee: $0.20
Transaction fee (6.5%): 6.5% * ($25 + $6) = $2.02
Payment processing fee (3% + $0.25): 3% * ($25 + $6) + $0.25 = $1.18
Total Etsy fees: $3.40
Revenue (product price + shipping): $31
Total costs: $18.40
Total profit: $31 – $18.40 = $12.60
Mid-priced products
For our second example let’s use a glossy metal print. The price is higher, and it has more packaging material involved, which makes it a bit more expensive to ship.
Source: Printful
Product price for customers: $70
Shipping: $10
Cost of the product for you: $38
Shipping cost: $10
Total product + shipping cost: $48
Listing fee: $0.20
Transaction fee (6.5%): 6.5% * ($70 + $10) = $5.20
Payment processing fee (3% + $0.25): 3% * ($70 + $10) + $0.25 = $2.65
Total Etsy fees: $8.05
Revenue (product price + shipping): $80
Total costs: $56.05
Total profit: $80 – $56.05 = $23.95
High-priced products
For our last example, let’s use a high-end handcrafted wooden table. Due to its size and weight, the shipping cost has increased significantly.
Source: Etsy
Product price for customers: $1,200
Shipping: $100
Cost of the product for you: $400
Shipping cost: $100
Total product + shipping cost: $500
Listing fee: $0.20
Transaction fee (6.5%): 6.5% * ($1,200 + $100) = $84.50
Payment processing fee (3% + $0.25): 3% * ($1,200 + $100) + $0.25 = $39.25
Total Etsy fees: $123.95
Revenue (product price + shipping): $1,300
Total costs: $623.95
Total profit: $1,300 – $623.95 = $676.05
By breaking down the fees for low, mid, and high-priced products, you can see how each type of expense adds up and impacts your earnings. To make these calculations easier, you can forecast your Etsy store’s earnings with our free Etsy Calculator.
Valuable read: Is Etsy Print-on-Demand Profitable in 2024?
Selling on Etsy made easy
Now that you understand Etsy’s fee structure, you’re fully equipped to launch your Etsy business and turn your creativity into income.
Whether you aspire to become a full-time creator or just want to make some extra cash on the side, Etsy provides an excellent opportunity to build a business around your passion.
By leveraging POD suppliers like Printful, you can focus on creating high-quality trending products while Printful’s seamless integration takes care of product fulfillment and shipping.
And just like that, you’re all set to begin your Etsy dropshipping venture.
Happy selling!
Read next: How To Sell Print-on-Demand On Etsy in 10 Easy Steps.
Learn how much Etsy takes per sale with a clear breakdown of fees, including listing, transaction, and payment costs.
Amazon’s Impact on Global Supply Chains and Logistics
Amazon, the global e-commerce behemoth, has transformed not only the way consumers shop but also the intricacies of global supply chains and logistics. Since its inception in 1994, Amazon has grown from a small online bookstore to a trillion-dollar enterprise that has disrupted industries across the globe. Its influence extends far beyond retail, profoundly impacting supply chains, logistics, and even the environment. This article explores Amazon’s multifaceted impact on global supply chains and logistics, examining how the company has reshaped these industries and what this means for the future.
The Evolution of Amazon’s Supply Chain
Amazon’s supply chain is one of the most sophisticated in the world, characterized by its efficiency, speed, and scale. The company has invested heavily in technology and infrastructure to build a supply chain that can deliver millions of products to customers in a matter of hours or days. This rapid delivery is made possible by a vast network of fulfillment centers, sophisticated inventory management systems, and a logistics arm that rivals traditional carriers like FedEx and UPS.
One of the key innovations Amazon has introduced is its Fulfillment by Amazon (FBA) service. FBA allows third-party sellers to store their products in Amazon’s fulfillment centers, with Amazon handling the picking, packing, and shipping of these products. This service has not only made it easier for small businesses to reach a global audience but has also significantly increased the volume of goods flowing through Amazon’s supply chain. As a result, Amazon has become a central hub in the global supply chain, connecting manufacturers, suppliers, and customers across the world.
Disruption of Traditional Logistics
Amazon’s influence on logistics is equally profound. The company’s relentless focus on speed and efficiency has forced traditional logistics providers to rethink their strategies. In many cases, Amazon has bypassed traditional logistics networks entirely by building its own. Amazon Logistics, the company’s delivery arm, has grown rapidly in recent years, with a fleet of planes, trucks, and delivery vans that allow the company to control every aspect of the delivery process.
This vertical integration has enabled Amazon to offer services like same-day and two-hour delivery in many urban areas, setting a new standard for speed in the industry. Traditional logistics providers have struggled to keep up, leading to increased competition and innovation in the sector. For example, companies like FedEx and UPS have had to invest in new technology and infrastructure to remain competitive, while others have formed partnerships with Amazon to leverage its vast logistics network.
Amazon’s logistics network has also expanded globally, with the company establishing regional hubs and fulfillment centers in key markets around the world. This global expansion has allowed Amazon to offer faster and more reliable delivery services in regions where traditional logistics infrastructure is underdeveloped. In many cases, Amazon has played a role in building out this infrastructure, partnering with local logistics providers or investing in its own facilities.
Impact on Global Supply Chains
Amazon’s impact on global supply chains extends beyond logistics. The company’s demand for speed and efficiency has rippled through the entire supply chain, from manufacturers to suppliers to retailers. This has led to significant changes in how companies operate, with many adopting new technologies and strategies to keep up with Amazon’s pace.
One of the most significant changes is the increased reliance on automation and technology in supply chain management. Amazon has been at the forefront of this trend, investing heavily in robotics, artificial intelligence, and data analytics to optimize its supply chain operations. For example, the company’s use of robotics in its fulfillment centers has reduced the time it takes to pick and pack orders, while its AI-driven demand forecasting tools help ensure that the right products are always in stock.
This emphasis on technology has influenced other companies to follow suit, leading to a wave of digital transformation across the industry. Manufacturers and suppliers are increasingly using data analytics and AI to optimize their operations, while retailers are adopting new technologies like blockchain to improve transparency and traceability in their supply chains.
Another significant impact of Amazon on global supply chains is the shift towards a more customer-centric model. Amazon’s focus on the customer has forced companies to rethink their supply chain strategies, with many now prioritizing speed, convenience, and flexibility over cost. This has led to the adoption of new fulfillment models, such as just-in-time inventory and dropshipping, which allow companies to respond more quickly to changes in customer demand.
The globalization of Amazon’s supply chain has also had broader implications for international trade. By connecting sellers and buyers from different parts of the world, Amazon has made it easier for companies to access global markets. However, this has also led to increased competition, with companies now competing on a global scale. This has put pressure on manufacturers and suppliers to lower costs and improve efficiency, leading to changes in how goods are produced and distributed around the world.
Environmental and Social Implications
While Amazon’s impact on supply chains and logistics has been largely positive in terms of efficiency and convenience, it has also raised concerns about the environmental and social implications of its operations. The company’s emphasis on fast delivery and the constant movement of goods around the world has contributed to increased carbon emissions and environmental degradation. In response to these concerns, Amazon has committed to achieving net-zero carbon emissions by 2040 and has invested in initiatives like electric delivery vehicles and renewable energy projects.
However, critics argue that these efforts are not enough, and that Amazon’s business model is fundamentally unsustainable. The constant pressure to deliver goods faster and cheaper has led to concerns about the working conditions in Amazon’s fulfillment centers and the treatment of delivery drivers. Reports of long hours, high injury rates, and low wages have sparked protests and calls for better labor practices across the company’s global operations.
The Future of Supply Chains and Logistics
As Amazon continues to grow and evolve, its impact on global supply chains and logistics is likely to deepen. The company’s investments in technology and infrastructure will continue to set new standards for speed and efficiency, forcing other companies to innovate and adapt. At the same time, the environmental and social challenges associated with Amazon’s operations will require the company to rethink its approach to sustainability and labor practices.
In the future, we can expect to see more companies adopting Amazon-like supply chain strategies, with an emphasis on speed, technology, and customer-centricity. However, these changes will also require a greater focus on sustainability and ethical practices, as consumers and regulators increasingly demand more responsible business operations.
Conclusion
Amazon’s impact on global supply chains and logistics is undeniable. The company has reshaped the industry in its image, setting new standards for speed, efficiency, and customer service. While these changes have brought many benefits, they have also raised important questions about sustainability and labor practices. As the world’s largest online retailer, Amazon will continue to play a central role in the future of global supply chains and logistics, driving innovation and change across the industry.
