Every Etsy fee, in plain English
Etsy takes money at four separate moments in a sale, and each one is small enough to ignore individually. Together they typically remove 10-15% of what the buyer pays.
1. The listing fee
$0.20 when you publish a listing, and $0.20 again every time it renews or sells. A shop with 200 listings that sell slowly is paying rent on inventory that is not moving: $40 to keep the shelves full for four months, before a single sale.
2. The transaction fee
6.5% of the order total. The detail that surprises people is "total": it includes the shipping you charged the buyer. Charging exact postage does not protect you, because the fee applies to it too.
3. Payment processing
Around 3% plus $0.25 in the US, and it applies to the full amount collected, shipping included. The fixed component matters more than sellers expect: on a $12 sale it is over 2% on its own.
4. Offsite ads
15% on orders that come from an offsite ad, or 12% once you have made more than $10,000 in the last 365 days. Below $10,000 it is optional; above it, Etsy advertises on your behalf and the fee applies whether you wanted it or not.
5. The quiet ones
A currency conversion fee of around 2.5% if your listing currency differs from your payout currency. A regulatory operating fee in certain countries. And VAT charged on Etsy's fees themselves in some jurisdictions, which means you pay tax on the fee you already paid.
What it adds up to
Take a $42 item with $6 shipping. Etsy's transaction fee takes $3.12, payment processing takes $1.69, and the listing fee takes $0.20. That is $5.01 gone before you have paid for materials or postage, and it is 10.4% of the order. Add offsite ads at 15% and it becomes $10.71, a quarter of everything the buyer paid.
Run your own numbers in the Etsy fee calculator to see the break-even price for your products, and compare the same item against eBay and Shopee-style platforms in the comparison tool.
The pricing rule that follows
Price from margin, not from a round number. Decide the margin you need after every fee, then solve for the price instead of testing prices and wondering why the deposits are small.