Etsy does not charge one simple percentage. Your take-home is the sale price minus listing, transaction, payment processing, and optional Offsite Ads — then minus product and shipping cost.
The fee stack (US simplified model)
| Fee | Typical model used in calculators | Notes |
|---|---|---|
| Listing | $0.20 | Charged when you list / renew; often allocated per sale in simple models |
| Transaction | 6.5% of item price + shipping charged to buyer | Core marketplace cut |
| Payment processing | Often modeled ~3% + $0.25 | Confirm in your Etsy Payments view |
| Offsite Ads | 12% or 15% of order value when attributed | Only when an offsite ad drove the order |
Always verify the live schedule in Etsy’s seller handbook. Promotions and country can change listing cost and processing.
Example: $35 item + $5 shipping charged, $10 product, $4.50 ship cost
Order value for % fees is often price + shipping charged ($40 in this sketch).
Transaction 6.5% of $40 ≈ $2.60 · Processing ~$1.45 · Listing $0.20 → fees ≈ $4.25 without Offsite Ads.
Revenue $40 − fees $4.25 − product $10 − ship cost $4.50 ≈ $21.25 contribution.
If Offsite Ads (15%) applies on $40 → +$6 ads → contribution falls to roughly $15. That is why ads need their own toggle in the calculator.
Listing fee reality
The $0.20 is small per sale on a $50 item and painful if you list hundreds of variants that never sell. Auto-renew means quiet costs. Model steady-state fees, not launch-week promos with free listings.
When Etsy still wins
- Audience already shopping handmade / vintage / craft.
- You do not want to buy all your own traffic on day one.
- Your price point is high enough that 6.5% + processing leaves healthy room after COGS.
When volume is high and you own demand, Shopify can win on fee structure — but only if traffic cost is under control.