Looking to learn everything about Etsy fees? I’ve got you.
While dropshipping is a low-risk business model with little to no upfront investment, that doesn’t mean it comes without costs. Even if they’re small, platform fees are part of the game, and knowing them well can help you avoid future headaches.
Luckily, AutoDS helps Etsy dropshippers automate product sourcing, pricing, and fulfillment, so they can focus on growing their store instead of managing repetitive tasks.
Now, while automation helps us in more ways than one, staying on top of the Etsy fees we need to pay helps us make smarter decisions.
Now, let’s break down all the possible fees you might encounter so nothing catches you off guard.
Etsy charges multiple fees, such as listing, transaction, and payment processing fees.
Listing fees are $0.20 per item, charged on creation and renewal.
Transaction fees are 6.5% of the sale price, including shipping and taxes.
AutoDS helps automate your Etsy dropshipping, reducing errors and saving time.
Smart strategies like bundling and optimizing pricing can help reduce Etsy fees.
Etsy’s Listing Fees
Every time you list a new product on Etsy, there’s a $0.20 USD fee per listing. This applies whether you do it through the website or the app. However, if that product is already in your Etsy shop and you’re adding it to your Pattern site, you won’t be charged anything extra. Listings that are exclusive to Pattern are also free of charge.
The key takeaway is that you’re only charged when you create or renew a listing. Editing it? That’s free. You’ll still be charged the fee even if the product doesn’t sell, unless you’re using a private listing. In that case, the $0.20 fee only kicks in once the item sells.
And what about listing duration? Etsy listings last 4 months before they expire, while Pattern listings never expire.
If you’re listing multiple units of the same product, you’ll pay $0.20 upfront, and then every time one sells, the listing auto-renews for another $0.20.
🆕 Beginner’s Tip: Speaking of listings, did you know that AutoDS automates the process so you can list products with just a few clicks?
Transaction Fees Explained
Etsy charges a 6.5% transaction fee based on the price you display in each listing. But heads up: this also applies to shipping costs and gift wrapping (if you offer them).
If you’re selling from the U.S., the fee doesn’t apply to sales tax. However, if you’re located in another country, the cost is calculated based on the full displayed price, including taxes, shipping, and customization, if applicable. This fee is automatically deducted from your Etsy balance as soon as the sale goes through.
Is your shop showing prices in a currency different from your account’s default? Special conversion rules apply in that case, which you can check in the Currency Conversion section.
Payment Processing Fees
If your shop is eligible, you can use Etsy Payments to accept payments directly through the platform. Every time someone buys from you using this system, Etsy will charge a payment processing fee.
This fee may vary depending on the country where your bank account is registered. In some cases, a fixed deposit fee may also apply if the amount to be transferred doesn’t meet a certain minimum threshold.
The processing fee is calculated based on the total sale amount (yes, that includes shipping and taxes), and Etsy deducts it straight from your payment account. As for the deposit fees, they’re subtracted from your available funds at the time your payout is scheduled.
Do you want to check the exact rates for your country? You can find them in the official Etsy Payments Policy.
Offsite Ads Fees (Optional but Important)
Etsy can promote your products outside the platform (like on Google or social media) through its Offsite Ads program. Etsy will cut that sale if someone clicks on one of those ads and buys from you.
If you made less than $10,000 USD in the past 12 months, you’ll be charged 15% of the order total (yes, including shipping and taxes) for any sale made through those ads. If you reach $10,000 USD, the fee drops to 12%, but at that point, you can’t opt out. Participation becomes mandatory.
Etsy Plus and Other Optional Costs
Is Etsy Plus worth it? That depends on how you use it.
Etsy Plus is a paid subscription ($10 USD/month) that gives you access to extra tools to boost your shop. What’s included? First, you get 15 monthly free listing credits and $5 USD in Etsy Ads credits. Keep in mind: if you don’t use them within the month, they expire, they don’t roll over.
You’ll also unlock more customization options for your storefront (like rotating banners or personalized section layouts), get early access to new features, and sometimes access discounts on custom domains through partnered providers.
It’s not mandatory, and not every seller finds it equally useful. But if you’re in growth mode and looking to invest in your brand, it might be a helpful tool to stand out a bit more.
Example Breakdown: How Much Does It Really Cost?
Let’s say you just sold a handmade necklace for $40, with $5 shipping. Here’s what Etsy would charge you for that sale:
- Listing Fee: You’re charged $0.20 when you publish your product listing. This fee is fixed.
- Transaction Fee (6.5%): Etsy takes 6.5% of the total sale (item + shipping):6.5% of $45 = $2.93
- Payment Processing Fee: In the U.S., this is 3% of the total order + $0.25. So: :3% of $45 = $1.35 $1.35 + $0.25 = $1.60
- Offsite Ads Fee (if applicable): If your sale came from an Offsite Ad and you’ve made less than $10,000 in the last 12 months, Etsy charges 15% on the order: 15% of $45 = $6.75 (This only applies if the sale resulted from a customer clicking an Offsite Ad.)
- Total Fees (with Offsite Ad): $0.20 (listing) + $2.93 (transaction) + $1.60 (processing) + $6.75 (ad fee) = $11.48
- Your Earnings: $45.00 (total received) – $11.48 (total fees) = $33.52
Focus on improving your margins without losing your mind over the numbers. Try the AutoDS’s features with the 14-day trial for just $1!
How to Reduce Etsy Fees as a Dropshipper
Every cent counts to achieve healthy profit margins and grow your Etsy dropshipping business. So, how can you reduce your fees and keep more of your earnings? Here are some valuable tips:
- Bundle items whenever possible: Selling multiple products in a single listing helps you save on both listing and transaction fees per unit. Plus, bundles tend to have higher prices, giving you more room to cover shipping and ad costs.
- Optimize your pricing strategy: It’s not just about raising your prices. It’s about knowing your numbers: how much each product costs you, what Etsy charges, and how much you need to earn so your dropshipping business is worth it.
- Leverage organic traffic: While Etsy Ads can be helpful, most of your sales should come from organic traffic. That means optimizing your titles, descriptions, and tags to rank in the right search results, without overspending on ads.
📢 Marketing Tip: Tired of brainstorming creative titles and descriptions for your products? Try the AutoDS AI Product Title & Description Generator, it’s a lifesaver.
- Keep your bestsellers active: You pay a fee every time you renew a listing. So, focus on keeping your top-selling products live. An extensive but inactive catalog might cost you more than it’s worth.
- Use AutoDS to automate and avoid human error: Pricing, incorrect inventory levels, or shipping setting errors can lead to double fees, lost sales, or even account penalties. With AutoDS, you can automate key processes and keep everything running smoothly.
- Offer free shipping strategically: Free shipping can boost your conversion rate, but only if you’ve built the cost into your product price. This helps you avoid surprise expenses and makes your listings more attractive in search results.
Frequently Asked Questions
Does Etsy charge more if I use a dropshipping supplier?
Not directly. Etsy’s fees apply the same way whether you sell handmade items or dropshipped products. However, since you’re not producing the items yourself, you’ll need to be extra mindful of your product costs, shipping fees, and listing renewals.
How can I avoid losing money on Etsy fees?
Calculate your profit margins after Etsy’s transaction, listing, and payment processing fees. Then, optimize your listings to attract organic traffic and avoid unnecessary ad spend. Bundling products and offering free shipping (smartly included in the price) can improve your margins without surprising costs.
Can automation really help reduce Etsy fees?
Absolutely. Automation tools like AutoDS minimize human errors, like wrong prices or stock mismatches, that can lead to refunds, bad reviews, or wasted ad spend. Plus, with features like automated pricing, inventory sync, and product research, you save time and stay competitive without manually managing every detail.
Conclusion: Are Etsy Fees Worth It?
This article’s goal is not to discourage you; quite the opposite! Understanding Etsy’s fees and additional costs helps you make smarter decisions. Yes, Etsy has several fees, but at the end of the day, you’re paying for access to massive, niche-targeted traffic and the trust of such a well-established platform.
If you keep these fees in mind and make the most of tools like AutoDS, which makes life easier for dropshippers by streamlining routine tasks, your Etsy dropshipping business will run like a charm! And if anything comes up, we’re here to help. In the meantime, here are three more articles you might find helpful:
