Marketplaces · Transaction + listing fees
Etsy
Low commission, but listing and payment fees stack up quickly on cheap items.
Key facts
| Fee model | Transaction fee + listing fee + payment processing + optional offsite ads |
|---|---|
| Transaction fee | 6.5% of the listing price plus shipping charged |
| Listing fee | $0.20 per listing, renewed every four months or after a sale |
| Payment processing | 3% + $0.25 for US sellers; varies by country |
| Offsite ads | 12–15% when a sale is attributed to an offsite ad; mandatory above a sales threshold |
| Who it suits | Handmade, vintage, personalised and digital products with a distinct visual identity |
| Last verified | 2026-10-17 |
Small fixed fees, large effect
Etsy's fees look gentle in percentage terms, but a $0.20 listing and a $0.25 payment component are fixed. On a $10 item the fixed charges alone are about 4.5% before the 6.5% transaction fee and 3% processing. On a $40 item they are closer to 1%.
The practical consequence is a pricing floor. Very cheap items either need to be sold in sets or priced up. Sellers who ignore this end up busy and unprofitable, which is a common pattern in handmade categories.
Offsite ads change the math
Offsite ads are charged only when a sale is attributed to an external ad, but the rate is high enough to wipe out the margin on a low-markup product. Sellers above the mandatory threshold cannot opt out, so the ad rate belongs in the cost model rather than in a separate marketing budget.
Etsy's strength is discovery for products that photograph well and are hard to search for by name. That is also why the platform can charge for external traffic: it is selling the demand, not just the storefront.
Frequently asked questions
What percentage does Etsy take in total?
There is no single number. The 6.5% transaction fee is the headline, but listing, payment processing and optional offsite ads are added on top. The effective rate is typically higher than 6.5% and is highest on cheap items.
Can I avoid offsite ads?
Sellers below the mandatory threshold can opt out. Above it, offsite ads are required, and the fee applies when a sale is attributed to one. Check your current seller status in Etsy's settings.
Ask a compliance question
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