Etsy charges three fees on a typical sale. For US sellers the transaction fee skips sales tax, but the processing fee includes it.
How Etsy calculates the fee
- $0.20 listing fee per item; 6.5% transaction fee on item price + shipping (+ gift wrap); for US sellers the transaction fee does not apply to sales tax. Payment processing (US bank account) is 3% + $0.25 on the total including shipping and sales tax. Offsite Ads fees are not included.
- Listing fees renew every four months or when a multi-quantity item sells again.
Example (formula-derived)
$20 item + $5 shipping, no tax: listing $0.20, transaction 6.5% x $25 = $1.63 (rounded from $1.625), processing 3% x $25 + $0.25 = $1.00. Total $2.83.
Not included
Offsite Ads fees (charged only when a sale comes from an Etsy offsite ad; see Etsy's fee policy), Etsy Ads, Share & Save credits, currency conversion, regulatory operating fees, and Etsy Plus.