Etsy has been a life-changer for several crafters. This platform is dedicated to artists and has opened up opportunities to make their hobby into a thriving business. With Etsy, you don’t have to worry about building your own website, calculating taxes and shipping expenses, and attracting web traffic.
However, some sellers are taken aback regarding Etsy’s fee structure. Etsy charges fees for listing to transaction and payment processing.
Etsy Pricing Plans
Etsy offers two subscription plans – The Standard Plan which is free, and the Plus Plan which has a monthly subscription fee.
The Standard Plan is free and comes with all the basic tools before Etsy created the Plus Plan. It allows sellers to list their products on Etsy, market them with coupons and sales, and buy & print discounted postage. It also allows access to the Sell on the Etsy App.
The Plus Plan includes all the basic features of the free Standard Plan plus more and is available at $10 per month. The Plus Plan offers additional features like advanced shop customization options (new layouts of featured listings, banner options, and more), and restock requests for items that are sold out.
It also offers discounts and credits on additional Etsy services:
- Free .store domains
- 15 listing credits monthly
- 50% off select domain extensions such as .net .com and .ca
- $5 in Etsy Ads credits monthly
- Discounts on promotional materials and custom packaging
- Discounts on custom web address
Etsy Fees That You Need to Know
For every item you put up, Etsy charges $0.20. Your listings expire after 4 months, so you need to pay the listing fee again.
The Transaction Fees charged by Etsy cover the cost of using their platform. It is 5% of the price of your product. For Etsy sellers outside the US and Canada, the transaction fee may include the cost of some taxes.
Shipping Transaction Fees
This covers 5% of the total cost that your customers pay for shipping.
Payment Processing Fees
For Etsy sellers to accept online payments, they have to pay the Payment Processing Fees. Paypal, Square, and other payment processors usually charge at 2.9% + $0.30 per transaction.
However, Etsy has its in-house payment processor, Etsy Payments which is only available in these countries:
- Czech Republic
- Hong Kong
- New Zealand
- South Africa
- United Kingdom
- United States
Etsy Payments charge 3% + $0.25 per transaction. It will allow the seller to accept payments by debit card, credit card, Etsy Credit, Etsy Gift Card, PayPal, Apple Pay, Google Pay, and some bank transfer services.
In-Person Selling Fees
Etsy offers its sellers an option for in-person selling, and because of it, they have partnered with Square in order to accept in-person payments. Here, you’ll pay Square’s payment processing fee of 2.6% + $0.10.
Etsy offers its merchants an option called Pattern, which is a website building software that will enable you to build your own store that is connected to your Etsy account. Pattern is available for $15 per month.
Currency Conversion Fees
It is recommended that you list your pricing the same currency as your payment account currency. This will make you avoid foreign exchange charges. Here, Etsy customers can select their desired currency. In the event you opt not to do this, you will be charged a 2.5% currency conversion fee.
Etsy is offering some marketing tools for sellers which include on and off-site ads that come with their respective fees.
On-Site Ad Fees
These ads are available on pay-per-click pricing. The cost of every click varies depending on the demand. You are able to set a budget that will limit the amount you are willing to pay for their on-site adds every day.
Offsite Ads Fees
Offsite Ads by Etsy is relatively new for Etsy’s advertising. All users are set up to use these Offsite Ads and with the option to discontinue the feature for sellers who made less than $10,000 in sales for the past year.
Here, Etsy will market your products on sites like Facebook, Google, Pinterest, Instagram, and Bing. In the event someone clicks the ad that includes your product and buys your product within 30 days, you will be charged a 12% or 15% advertising fee.
With all these fees, it can seem a bit confusing. However, they will be automatically deducted from your account. For your peace of mind, the best thing you can do is to price your products that will cover all these fees and give you a fair profit.