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Understanding Etsy Fees

Posted by Nicole Chenault on

Etsy is the cheapest platform to sell your products on. But there is a ton of misinformation on the breakdown of Etsy fees. So let me clear that up for you. Keep in mind that you are only charged these fees when you make a sale.

                                          The first fee is a listing fee.

When you sell an item, you are charged $.20 for the item to be relisted. If it was the last item and you are sold out, you will not be charged this fee.

                                     The next fee is a transaction fee.

Every time to make a sale you are charged a transaction fee of 6.5% on the total of the transaction which includes the price of the product, gift wrapping fee (if you offer it), and the shipping fee.

If you charge $20 for an item, $2 for gift wrapping, and $7 for shipping, the total price is $29. You will pay a transaction fee of $1.88, ($27x6.5 = 188.5/100 = $1.88 (/ stands for divide)

                                  The next fee is the payment processing fee

Just like any other platform or credit card processor, Etsy charges a fee for every payment that you receive through the Etsy payment system. The amount varies by the location of your bank account.

In the US the payment processing fees are 3.0% + $.25 - so if you have a sale for $10 you will pay $.55 ($10 sale x $.03 processing fee) + $.25)

Remember you are only charged these fees if you make a sale. But if you had a website and you didn't  make a sale, you'd still have to pay your monthly website fee.

If you are ready to start your Etsy shop and want some more guidance download my No BS Etsy Guide.

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