Etsy Fees: How to figure out what you really pay for your Etsy shop
Hello lovelies! In the light of Etsy updating their seller transaction fee from 3.5% to 5% and a few questions I received over Instagram about this, I decided to write a quick post showing you how to figure out how much you're really paying for your Etsy shop.
(If you're interested in my reasons for moving away from Etsy (which I did in March and haven't regretted a single second), go check out this post: "Why I moved away from Etsy.")
So! Here's the complete run-down of the four types of fees Etsy is charging you for your shop:
Payment Processing Fee
1. Listing Fee
The listing fee is the $ or € you pay for simply listing an item on Etsy. It's a flat fee that is charged for every. single. thing. you sell through Etsy and amounts to $0.20 per item.
Etsy used to only charge this amount per listing, i.e. if you were, for example, putting up a new listing for a large project bag in pink and you'd have five of them in stock, you'd only get charged once for putting up the listing. Now you get charged five times, i.e. for every item that's in stock.
2. Transaction Fee
Every time you sell something on Etsy, Etsy keeps 3.5% of the price of the item you sold (not including the shipping costs & taxes) as their transaction fee. This is what has now increased to 5%.
Here's how you can find how much you've paid directly to Etsy in terms of fees:
If you want to look at it on a month by month basis:
- Go into your Etsy Shop Manager
2. Click on "Finances"
3. Click on "Your Bill"
4. Look at the "Fees" Column.
What you see here is the sum of listing and transaction fees you're paying to Etsy every month.
How to read this table: As you can see, my Etsy Fees are 0 for most of the past months, ever since I migrated away from Etsy. However, for February, you can see $20.10 in the "Fees" column. This means that for the month of February, I've paid Etsy $20.10 in listing and transaction fees.
If you want to break this down even further, here's how to do it:
1. Click on the name of the month you want to look at
2. Look at the "Summary of This Month's Activity"
This table details the breakdown of the sum you've seen in the "Fees" column. You can see how much you paid in listing fees, transaction fees, renewals, and so on.
Now, let's get on to the more complicated stuff, shall we?
3. Order Fee
The order fee is one part of the fees Etsy charges you for processing your payment. It's a flat fee charged per sale - how high the flat fee is depends on the location of your bank account. (Here's a complete list of the order fees per country.)
For Germany, for example, this order fee amounts to €0.30 per order.
4. Payment Processing Fee
In addition to the flat order fee, Etsy also charges you a percentage fee for processing your payment. Like with the order fee, the exact % depends on the location of your bank account - it ranges between 3 and 4%.
Really important to note here is that this fee is taken from the total sale's price including shipping and sales tax!
Here's how you can find how much you pay for having Etsy process your payment:
1. Go into your Shop Manager, click on Finances (see pictures above for details) and then on Payment Account
2. Look at the "Fees" column
In this column, you can see the order and payment processing fee for each order.
If you want to download this information (so that you don't have to add it all up manually), here's how to do that:
1. Scroll down and click on "Download Payment History"
2. Select the CSV you want to download: I like to use the "Orders" CSV file for the month I want to look at
3. Import the CSV file into an Excel or Google Spreadsheet and look at the column titled "Card Processing Fees"
If you add up that column, you'll get the sum of the order and payment processing fees you've paid to Etsy per month.
As far as I can tell, there's no single report produced by Etsy that shows all these fees in one place. It seems they're working on it (at least this page says they're redesigning the Payment Account page), but for now you need to work with a few different reports to get an understanding of how much you actually pay Etsy.
Now, what to do with this information?
First up, it's essential for you to know how expensive it is for you to run your business and chances are, Etsy fees are a huge part of your cost base. When I did the maths (and that was before the increase in seller transaction fees), I paid over 10% of my monthly revenue to Etsy. That's A LOT.
If anything, use this information to factor it into your budgeting for your business. Know that you need to account for these fees when you're planning how much money you need to make and how to price your products.
You can also use these numbers to calculate whether moving away from Etsy makes sense for you financially. You can find the details of that side of my decision here, but moving away from Etsy to a platform like Squarespace or Shopify can make a lot of sense financially even if you don't have that much revenue coming in just yet! Simply look at what you would pay on a different platform per month and compare that to what you now know you're paying Etsy.
Last, but not least: Do me a favor and forward this article to a friend of yours who's running an Etsy shop. I've spoken to one too many Etsy sellers who are not aware of how expensive Etsy can get - and it's NOT THEIR FAULT. The platform makes it incredibly hard for you to understand how much you're paying and all that I want to get out of this article is for people to do the maths and to take the numbers into account when they make a decision what to do about their Etsy shop.