Exploring Etsy's Commission Rates and Fees

Etsy is a popular online marketplace where creative individuals can sell their handmade crafts, vintage items, and unique supplies. If you are considering selling on Etsy, it's crucial to understand the fees associated with the platform. In this article, we will dive into the question, "What percentage does Etsy take from sales?" to provide you with a comprehensive overview.

1. Understanding Etsy's Listing Fees

When you list an item for sale on Etsy, there is a small fee involved. Currently, the listing fee is $0.20 per item, and it remains active for four months or until the item is sold. This fee covers the cost of promoting your listing within Etsy's search results, making it more visible to potential buyers.

2. Etsy's Transaction Fees: How Much Do They Take?

In addition to the listing fee, Etsy charges a transaction fee on each sale made through the platform. As of July 2021, Etsy's transaction fee is 5% of the item's total sale price, including the shipping cost. This fee helps cover payment processing costs and allows Etsy to continue providing a secure and convenient buying experience for customers.

3. Calculating Etsy's Payment Processing Fees

Etsy offers sellers various payment options, including Etsy Payments, which consolidates multiple payment methods. While using Etsy Payments is not mandatory, it simplifies the selling process. When a sale is made through Etsy Payments, there is an additional payment processing fee.

The payment processing fee varies depending on your location. For sellers based in the United States, the fee is 3% of the item's total sale price, plus $0.25. International sellers are subject to a fee of 4.5% of the total sale price, plus a currency conversion fee if applicable. It's important to consider these fees when pricing your items to ensure you account for any additional costs.

4. Other Potential Fees on Etsy

While the listing, transaction, and payment processing fees are the primary costs associated with selling on Etsy, there are a few other fees you should be aware of:

- Currency conversion fees: If you sell internationally and receive payments in a currency different from your own, Etsy charges a fee for converting the funds into your local currency.

- Offsite ads fees: If you opt into Etsy's Offsite Ads program and make a sale as a result of an advertisement on platforms like Google or Facebook, Etsy charges an additional fee. The fee ranges from 12% to 15% of the item's sale price.

- Promoted listings fees: Etsy offers sellers the option to promote their listings for increased visibility. If you choose to promote your listings, there will be an additional fee based on your budget and the number of clicks or views your promoted listings receive.

It's important to consider these potential fees when calculating your overall expenses and pricing your items accordingly.

Conclusion

Selling on Etsy comes with various fees to consider, including listing fees, transaction fees, payment processing fees, and potentially additional fees for currency conversion, offsite ads, and promoted listings. Understanding these fees is essential for sellers to accurately calculate their costs and ensure they are pricing their items competitively. By taking these fees into account, sellers can effectively manage their Etsy shops and make informed decisions to maximize their profits.