If you sell on Etsy or are thinking about opening your first shop, understanding how fees work is essential to running a profitable business. Many sellers are surprised to discover just how many different types of fees Etsy charges, from the initial listing fee to transaction fees, payment processing, advertising, and even regulatory operating fees depending on where you live.

In this comprehensive guide, we break down every fee and payment policy on Etsy so you can price your products correctly, manage your cash flow, and avoid any unpleasant surprises at the end of the month.

This guide covers Etsy’s official Fees & Payments Policy in plain language, giving you everything you need to know as a seller.

Section 1: Types of Fees on Etsy

Etsy charges sellers multiple types of fees, and it’s important to understand each one. All fees are listed exclusive of any value-added tax (VAT) or similar taxes that may apply. Also note that all service fees including prepaid fees are non-refundable.

1.1 Set-Up Fee

When opening a new Etsy shop, you may be required to pay a one-time set-up fee. If applicable, this fee will be displayed and charged as part of the shop set-up process. Etsy will initiate a pending transaction on your card during onboarding, which is processed after your shop is open and ready to receive orders.

Key points about the set-up fee:

The one-time set-up fee is non-refundable once paid.
Etsy reserves the right to adjust or change the set-up fee at its discretion.
In certain circumstances or promotional periods, the set-up fee may be waived.
The fee is listed exclusive of taxes; additional tax charges may apply later.
If you are onboard using Payoneer, the fee is charged in USD.

1.2 Listing Fees

You are charged a listing fee of $0.20 USD for each item you list for sale on Etsy.com or the Etsy mobile apps. Etsy.com listings expire after four months, at which point they must be renewed also at $0.20 to remain active.

Important listing fee rules to know:

You are charged the listing fee whether or not your item sells.
Private listings are an exception; you are only charged when the listing sells.
There is no fee for editing a listing, only for creating or renewing one.
If you list on both Etsy and Pattern, no additional listing fees apply for Pattern.
Listings only on Pattern do not incur a listing fee.
If you list multiple quantities, the $0.20 renewal fee is charged each time a unit sells.
Listing fees are reflected in your payment account and deducted when the listing is published or renewed.

Auto-Renew: Etsy’s automatic renewals feature will renew your listings at the end of each four-month period unless you opt out. You can cancel automatic renewals at any time by selecting “Manual” instead of “Automatic” in the Renewal Options in your Listings Manager.

1.3 Transaction Fees

When you make a sale through Etsy, you are charged a transaction fee of 6.5% of the price displayed for each listing, plus the amount charged for shipping and gift wrapping. This fee is deducted from your current balance as each sale occurs.

Transaction fee details:

US sellers: Transaction fees do not apply to sales tax.
Non-US sellers: Transaction fees apply to the full listing price, including any applicable taxes included in your price, shipping price, and gift wrapping fee.
If you offer optional personalization for an additional fee, that fee is added to the listing price and is also subject to the 6.5% transaction fee.
Currency conversion may affect how fees are calculated if you list in a currency different from your payment account.

1.4 Advertising and Promotional Fees

Etsy offers two main advertising services: Etsy Ads (on-platform paid advertising) and Offsite Ads (off-platform advertising through partner networks). Each has a different fee structure.

Etsy Ads

With Etsy Ads, you set a daily maximum budget through the Advertising Dashboard in Shop Manager. You will not be charged more than your daily maximum. All bids are made in USD. Etsy Ads fees may be charged on a recurring basis and are deducted from your payment account.

Offsite Ads

Etsy purchases offsite advertising through partners like social networks and search engines. You are only charged if a buyer clicks one of these ads and places an order from your shop within 30 days. These are called “Attributed Orders.”

Offsite Ads fee rates:

15% fee: Applies to shops that have made less than $10,000 USD in sales over the prior 365 days. These sellers can opt out of Offsite Ads.
12% fee: Applies to shops that have made $10,000 USD or more in sales over the prior 365 days. Participation is mandatory for these sellers even if they later fall below the threshold.
Once you reach the $10,000 threshold, you pay 12% for the lifetime of your shop.
The maximum Offsite Ads fee on any single Attributed Order is $100 USD.
Offsite Ads fees apply to the total order amount including listing price, shipping, gift wrapping, and in some jurisdictions, taxes.

1.5 Subscription Fees (Etsy Plus)

Etsy sellers in good standing may opt into Etsy Plus, a subscription package offering an expanded set of tools for growing brands. The fee for an Etsy Plus subscription is $10 USD per month, deducted from your payment account each month.

Each Etsy Plus subscription cycle includes:

15 listing credits (shown as $3 in listing credits in your payment account).
$5 USD in Etsy Ads credits (visible in your payment account and advertising management page).
Credits must be used during the subscription cycle; they expire and do not roll over.

Cancellation: You can cancel your Etsy Plus subscription anytime through Shop Manager > Settings > Your Subscription. You will retain access until the end of the current cycle, after which your shop returns to Etsy Standard.

1.6 Payment Processing Fees

Eligible Etsy shops use Etsy Payments to accept various payment forms. Payment processing fees are charged for each transaction made through Etsy Payments and vary based on the location of your bank account. These fees are deducted from the sale amount in your payment account.

Key facts about payment processing fees:

The payment processing fee is assessed on the total sale amount, including tax and shipping.
In certain markets, a fixed deposit fee may be charged for disbursements under designated thresholds.
Deposit fees are deducted from your available funds at the time of your scheduled deposit.
Check the Etsy Payments Policy for processing fees and deposit fees by country.

1.7 Other Fees: Shipping, Pattern, In-Person & Regulatory

Shipping Fees

Sellers in certain locations can purchase shipping labels through Etsy. Costs vary by carrier, origin, destination, weight, and dimensions. Optional add-ons like signature confirmation or insurance add to the total label cost. US sellers who purchase USPS shipping return labels are charged after delivery of the returned package.

Pattern Fees

Pattern is Etsy’s tool for creating a personalized website. You can try it for free for 30 days. After the trial, you are charged $15.00 USD per month. Your first month’s fee will be prorated. The subscription auto-renews on the first of each month at 12:01 am Eastern Time. If you purchase a domain through Tucows, additional fees for domain registration apply.

In-Person Selling Fees

You can use the Square reader to process in-person sales. Synced Etsy listings will be charged the same $0.20 renewal fee. Non-synced listings are charged a $0.20 transaction fee (appearing as a “Square manual” fee). In-person sales are NOT subject to Etsy’s 6.5% transaction fee but ARE subject to Square’s Payment Processing Fees.

Regulatory Operating Fees

Sellers in certain countries are charged a Regulatory Operating Fee on each transaction. This is a fixed percentage of the listing price plus shipping (including gift wrapping and personalization if applicable). The percentage varies by country and is charged in addition to other standard fees. Check Etsy’s help article to see if your country is affected.

Section 2: Off-Platform Transactions What You Must Avoid

Etsy strictly prohibits any action that moves a transaction off the Etsy platform. This includes encouraging buyers to purchase through another venue or directing buyers elsewhere via a QR code. Off-platform transactions are not protected by Etsy’s secure payment platform or policies and represent a fraud risk for both buyers and sellers.

The rules are clear:

A transaction initiated on Etsy may not be completed off Etsy.
The price stated in each listing must accurately represent the sale.
Sellers may not alter an item’s price after a sale to avoid transaction fees.
Sellers may not misrepresent an item’s location.
Sellers may not use another user’s account without permission.

Section 3: How to Pay Your Etsy Fees

Etsy automatically deducts all fees from your payment account (with the exception of the set-up fee, which is charged directly to your card during onboarding). If your payment account has sufficient funds, no further action is required.

If your payment account does not have sufficient funds, you are responsible for paying outstanding fees within 15 days of the date of your monthly statement. Etsy may charge the card on file or take other recoupment actions if not paid. If you make a sale while you have an outstanding balance, the net sale amount will be applied to the outstanding balance.

Payment methods for outstanding balances:

Credit card
Debit card
PayPal
AutoBilling (US sellers only Etsy’s automatic outstanding fee payment option)

AutoBilling Details

AutoBilling charges any outstanding fees to your card on the first of the month or whenever your current balance reaches the designated fee threshold. You authorize Etsy to keep your card on file for this purpose. If your card is declined, your Etsy account may be suspended or terminated, and you remain obligated to pay the outstanding balance by other means.

Section 4: Understanding Etsy Payments

Etsy Payments enables sellers to accept various forms of payment in their local currencies while using Etsy’s services. Through Etsy Payments, buyers can pay using:

Major credit and debit cards accepted by Etsy
Etsy Gift Cards, Etsy Credits, and Etsy Coupons
Certain bank transfer services
PayPal (where available)
Apple Pay
Google Pay
Klarna (where available)

Sellers using Etsy Payments are subject to the Etsy Payments Policy in addition to the Fees & Payments Policy. Etsy also charges the standard payment processing fee on transactions made with Etsy Gift Cards, Etsy Credits, and Etsy Coupons.

Section 5: Taxes: What Etsy Handles vs. What You Handle

Tax obligations are one of the most misunderstood aspects of selling on Etsy. Understanding what Etsy manages for you versus what is your responsibility is critical to staying compliant.

5.1 What You Are Responsible For

As a seller, you are responsible for collecting and paying any taxes associated with using Etsy’s services and making sales, including any fines, penalties, or interest assessed on such taxes. Etsy’s fees do not include any withholding taxes that might apply in your home country. You must pay Etsy the full amount of fees and may not deduct withholding taxes from that amount.

5.2 What Etsy Handles

US Sales Tax:

Etsy automatically calculates, collects, and remits sales tax on your behalf for orders shipped to customers in most US states. Etsy uses the category you assign to each listing to calculate the applicable taxes. You are solely responsible for ensuring your listings are correctly categorized.

Canada:

If you sell on Etsy and reside in Canada, you generally need to include applicable taxes in your listing prices. However, where local tax legislation requires Etsy to collect taxes on your behalf, Etsy may apply taxes on a tax-excluded basis so that taxes included in your prices are not double-taxed.

Digital VAT:

For digital items delivered via automatic download, Etsy is required to collect and remit VAT to relevant tax authorities in certain countries. Etsy automatically displays the increased amount to buyers and remits it to authorities. If the sale was made through Etsy Payments, no further action is required from you.

5.3 VAT on Seller Fees

Depending on your business status and location, Etsy may be required to apply VAT on seller fees charged each month and remit it to the relevant tax authority. All fees listed in Etsy’s policy are exclusive of VAT.

Section 6: Currency Conversion

Selling internationally introduces currency considerations that can affect your fees. Here is what you need to know:

Most fees (except transaction fees, Offsite Ads fees, payment processing fees, Regulatory Operating fees, and deposit fees) are converted from USD to your payment account currency at the market rate when the fee appears in your account.
Transaction fees and Offsite Ads fees are converted to your payment account currency at the market rate if you list in a different currency.
The set-up fee is charged to your card in the local currency of your bank.
If you list in a currency different from your payment account, you will be charged a 2.5% currency conversion fee on the sale amount.
Etsy recommends listing in the same currency as your payment account to avoid foreign exchange charges.
Buyers see items in the currency of their choosing; this does not affect your payment account currency.
Sellers in Bulgaria, Croatia, Czech Republic, Hungary, Poland, and Romania have all fees deducted in Euro (EUR).

Section 7: Marketplace Reporting and Seller Information

Where legally required, Etsy will report your personal details and transaction details to relevant governmental authorities. For US sellers, Etsy issues 1099-K forms to certain sellers in compliance with IRS and applicable state requirements. You may opt in to receive your 1099-K form electronically.

Section 8: Etsy Gift Cards, Credits, and Coupons

If you are registered for Etsy Payments, you may accept payment by Etsy Gift Cards, Etsy Credits, and Etsy Coupons. These payment forms are subject to the Etsy Gift Cards, Credits & Coupons Policy.

Etsy charges the standard Etsy Payments payment processing fee on transactions made with Gift Cards, Credits, and Coupons the same as any other payment method through Etsy Payments.

Conclusion: Mastering Etsy Fees for a Profitable Shop

Running a successful Etsy shop means understanding every dollar that comes in and every dollar that goes out. Etsy’s fee structure is multifaceted, from listing fees to transaction fees, advertising costs, subscription plans, and tax obligations, and each fee has real implications for your profit margins.

Here are the most important takeaways from this guide:

Always factor the 6.5% transaction fee into your pricing strategy.
Know whether you qualify for the 12% or 15% Off Site Ads fee and whether you can opt out.
Understand your tax obligations: what Etsy handles automatically versus what you must manage.
List in your payment account currency to avoid the 2.5% currency conversion fee.
Keep your payment account funded to avoid late fees and potential account suspension.
Ensure your listings are correctly categorized, especially for tax calculation purposes.
If you are considering Etsy Plus, calculate whether the $10/month subscription delivers ROI through the included listing and ad credits.

By staying informed about Etsy’s Fees & Payments Policy, you put yourself in a position to price competitively, manage cash flow effectively, and grow a sustainable creative business on one of the world’s largest handmade and vintage marketplaces.