No one opens an Etsy shop to lose money right? But, you might be unknowingly doing this if you don’t understand the fees that Etsy is charging you.
I speak from experience here and made some whopper of mistakes myself so I wanted to pass along what I learned so that you don’t make the same mistakes I did.
I want to point out quickly that the Etsy fees I talk about here are the fees for sellers who are based in the United States and who are also selling to someone located within the United States.
If your Etsy shop is located in another country, Etsy charges different fees than what I cover here.
What Fees Etsy Charges You
First, is the Listing Fee – $0.20.
Every new listing you create on Etsy costs $0.20. Etsy doesn’t charge you for this right away. It’s instead added to your Etsy bill.
If you make a sale, Etsy will take this $0.20 from your sale before they send you your profits.
This $0.20 has to be paid no matter what and it keeps your listing active on Etsy for 4 months.
When you add your listing, Etsy will ask you if you want to manually renew the listing after 4 months, or, if you’d rather just have it “auto-renew” which means that once your 4 months is over Etsy will just automatically renew your listing.
If you choose “auto-renew” when creating your listing, then when the 4 months are up, Etsy will automatically renew your listing for you. This is called the…
Auto-Renew Expired Fee – $0.20.
The same as a listing fee (above) only by this time, your listing has been active for 4 months already and has expired. If you chose to “auto-renew” your listing, then you’ll be charged $0.20, which has to be paid no matter what, and your listing is again active for another 4 months.
Auto-Renew Sold Fee – $0.20
This only pertains to your listing if you have more than one item in stock within the same listing.
For example, if you have 5 identical hair bows, and you create your listing indicating that you have 5 hair bows in inventory, each time one of those hair bows sells, you’ll be charged an “auto-renew sold” fee of $0.20.
In other words, Etsy charges you $0.20 per item, not per listing.
Private Listing Fee – $0.20
Sometimes a customer wants you to create something just for them that isn’t in your shop. But in order to sell it through Etsy, you still need to create a listing for it for your customer. Etsy again, will charge you $0.20 for this private listing fee.
Transaction Fee – 5% of the total cost of the item plus shipping.
This can get a little confusing so let’s take it apart.
The Total Cost of the item: Let’s say your item sells for $20.00. 5% of $20.00 is $1.00. So Etsy will charge you $1.00 in transaction fees.
The Cost to Ship the Item: Etsy also charges you 5% of the shipping costs for the item. So, if your shipping costs are $5.00, 5% of this is $0.25.
So far your total Etsy fees are $1.25.
Gift Wrapping: This is entirely optional. But you do have the ability to offer gift wrapping. You can also charge whatever you want for this service. So let’s say that you charge $3.00 for gift-wrapping. 5% of $3.00 is $0.15.
Your total fees then on your $20.00 item, including shipping and gift wrapping is $1.40.
Payment Processing Fee – 3% + $0.25 (United States)
This again is on the total cost of your item.
Using the same example as above, we have a $20.00 product, that costs $5.00 to ship and $3.00 to gift wrap for a total cost of $28.00.
3% of $28.00 is $0.84. Plus, you need to add in the $0.25 cents so we have a total of $1.09 for your payment processing fee.
WHEW! That’s a lot of information I know. So let’s wrap it up and take a look at the total.
- Total product cost: $28.00
- Listing fee: $0.20
- Transaction fee: $1.00
- Fee for Shipping Cost: $0.25
- Gift-wrapping fee (optional): $0.15
- Payment Processing fee: $1.09.
- TOTAL FEES: $2.69
Just remember to consider these fees when you’re pricing your product.