Etsy Fees Explained: What Sellers Really Pay (US & UK)
Etsy's fees look small individually, which is exactly why new sellers underestimate them. Three mandatory charges stack on every single order, and a fourth applies if the sale came through Etsy's advertising. Here is the full 2026 picture.
The three mandatory fees
- Listing fee — $0.20 per listing, charged when you list and again each time a multi-quantity listing renews after a sale.
- Transaction fee — 6.5% of the total the buyer pays: item price plus shipping, plus gift wrap if offered.
- Payment processing — country-dependent: 3% + $0.25 in the US, 4% + £0.20 in the UK, calculated on the full order including tax.
Offsite Ads: the fee you cannot always refuse
Etsy advertises listings on Google, Facebook, Instagram and elsewhere. When a sale is attributed to those ads within 30 days of a click, you pay 15% — or 12% once your shop has passed $10,000 in trailing-12-month sales, at which point participation becomes mandatory. A $40 order through Offsite Ads at 15% pays roughly $10 in combined fees: a quarter of the sale.
What it adds up to
On a typical $35 item with $6 shipping (US seller, no ads): $0.20 + $2.67 + $1.48 = $4.35, about 10.6% of the order. With Offsite Ads it jumps past 25%. Handmade sellers pricing from materials alone routinely discover their "profit" was the fee budget — price from the full stack, including your true landed cost and your labor.