Etsy has a variety of fees that it charges a seller and sometimes they can get a little confusing; especially if you see a fee called the “auto-renew sold” fee.
As you may know by now, the fee to list an item on Etsy is $0.20. When an item sells, Etsy charges you a transaction fee of 5% and a payment processing fee of 3% + $0.25.
But sometimes you’ll see another $0.20 fee after an item sells called the “auto-renew sold” fee.
The best way to explain this fee is to look at two examples.
Scenario 1 – A Single Item for Sale
You are selling a silver ring with a purple stone. You only have one available. You list this item on Etsy and it sells. You only had one, so your listing with the silver ring with a purple stone will no longer be available for purchase on Etsy.
Your fees for this one ring are the $0.20 to list the item plus the transaction and payment processing fees.
Scenario 2 – More than One Item for Sale
You are selling a silver ring with a red stone. You have five of these available. You list the item on Etsy, and in your listing, you indicate that you have 5 in inventory.
One of the rings sells and you now have four rings left.
Your fees are the $0.20 that you spent to create the listing, your transaction fee, your payment processing fee, and an auto-renew fee of $0.20.
Your listing remains live on Etsy but you now have four rings instead of five in inventory.
The “auto-renew sold” fee was to re-list the silver ring with the red stone automatically for you.
I’ve found that the best way to think of the “auto-renew sold” fee is to think of it this way: Etsy charges you $0.20 per item in order to sell on their platform.
So, in your case of the five rings, instead of paying $1.00 up-front ($0.20 x 5), you only pay $0.20 to list the first item. When one of them sells, Etsy automatically re-lists your item for $0.20 because you still have four rings available to sell.
If you have any questions about the fee, please comment below and I’ll do my best to get to them as soon as I can.