Etsy's 6.5% transaction fee is the headline rate, but it is only one of three fees a US seller pays to sell an item. Each listing costs $0.20 to publish (and $0.20 again when it renews after four months, or after each sale of a multi-quantity listing). When the item sells, Etsy takes 6.5% of the item price plus whatever you charge for shipping and gift wrap. Etsy Payments then charges 3% of the order total, including shipping and any sales tax the buyer pays, plus $0.25 per order. Rates outside the US differ, and sellers in some countries also pay a regulatory operating fee. These are US rates under Etsy's Fees & Payments and Etsy Payments policies, as of October 2026.
Worked example: a crocheter sells a $30 plushie with free shipping, before sales tax. The fees are $0.20 + $1.95 + $1.15 = $3.30, about 11% of the sale, not 6.5%. Because $0.45 of that is fixed, cheaper items pay a bigger share: on a $10 item the same fees come to about 14%. With sales tax on the order, processing also takes 3% of the tax, so a taxed order pays slightly more than these before-tax figures.
If an order came from one of Etsy's Offsite Ads, Etsy also takes 15% of the order, or 12% once a shop has reached $10,000 in yearly sales, capped at $100 an order either way. That turns the $30 example into $7.80 in fees, over a quarter of the sale. A shop under $10,000 can opt out of Offsite Ads; once it reaches $10,000, it can no longer opt out and pays 12% from then on.
Price against the full fee stack rather than the headline rate, and check Etsy's Fees & Payments Policy before relying on these figures, since Etsy changes them from time to time. For a business, Etsy's fees are a selling expense, separate from the cost of goods sold.
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Related terms
Final Value Fee
A marketplace's commission on a completed sale, charged as a percentage of the total the buyer pays — including shipping and tax.
COGS (Cost of Goods Sold)
The total cost of materials, labor, and overhead directly tied to producing the goods you sell. Tracked automatically through purchases, recipes, and production runs.
Net Profit
What remains after all costs — direct costs of goods sold plus overhead, fees, and taxes — are subtracted from revenue. The true bottom line.
Markup
The amount added to an item’s cost to reach its selling price, expressed as a percentage of cost — and distinct from margin, which is measured against the price.