Every fee Etsy charges in 2026
Etsy's fees stack in ways that surprise new sellers. Per sale you pay: a $0.20 listing fee, a 6.5% transaction fee, and payment processing of 3% + $0.25 (US rates). The detail most sellers miss: the 6.5% and the processing fee apply to the whole order total — item price plus shipping — not just the item. Charging $5 shipping doesn't dodge fees; Etsy takes its cut of that too.
Then there's the Offsite Ads fee, the one that genuinely hurts: if Etsy runs an ad for your listing on Google or social media and a buyer purchases through it, you pay an extra 15% of the order (12% if your shop made over $10,000 in the past year — at that level the program is also mandatory). On a $30 order that's $4.50 gone before you've covered a single material cost.
All in, a typical organic sale costs you 10–12% of the order in fees. An offsite-ad sale costs 22–27%. That's why the same product can be profitable one sale and break-even the next — and why you should price for the ad-driven case, not the best case.
Pricing so the fees don't eat you
Work backwards from the margin you want. Handmade and print-on-demand sellers should target at least 30% net margin — below that, one remake, one refund, or a batch of offsite-ad sales pushes you underwater. A simple rule that survives Etsy's fee structure: price at roughly 4× your material/production cost for handmade goods, or production cost + $8–12 for print-on-demand.
If your margin looks thin in the calculator, you have three levers: raise the price (buyers on Etsy tolerate higher prices better than you'd expect — it reads as handmade quality), reduce production cost (POD sellers: compare providers, the same shirt varies by $3–4 between them), or build shipping into the item price and advertise 'free shipping', which Etsy's search actively rewards.
Worked example
A $25 print-on-demand shirt with $5 shipping charged, $8 production cost and $4.50 actual shipping: Etsy takes $0.20 + $1.95 + $1.15 = $3.30 (11% of the $30 order), leaving $14.20 profit — a healthy 47% margin. The same sale through an Offsite Ad at 15% loses another $4.50, dropping profit to $9.70. Still fine — but if the shirt were priced at $18, the ad sale would net under $4, and a single return would erase three sales of profit.