What Percent Does Etsy Take From a Sale?
How will you price your items correctly on Etsy if you don't know how much the platform takes when you make a sale? Just like any marketplace platform, Etsy charges its users certain fees. So, what percent does Etsy take from sales? Understanding seller fees is crucial for establishing a successful online store on one of the best online selling platforms.
Are You New to Etsy? Learn About This Marketplace to Profit
If you've decided to dedicate your time to developing a successful Etsy business, the first thing you will need to do is learn all about this multi-vendor marketplace platform. Armed with knowledge, you'll be able to avoid common rookie mistakes and reduce the time it takes to finally start making money on Etsy. Before we answer the burning question - what percent of profit does Etsy take? - check out the video below. It will answer all questions regarding starting on Etsy.
What Percent Does Etsy Take From Sellers?
How much does it cost to sell on Etsy? There isn't a short answer to this question because the final amount you pay for selling an item can be divided into several different Etsy fees. We'll break them down to help you calculate the overall amount you need to pay to sell on Etsy.
Listing Fee - When You Post a Listing
When you post a listing, Etsy charges you a listing fee. It doesn't matter whether you'll sell the item or not, as the listing fee is charged as soon as you post the listing. The amount is 16p for each listing. Paying this fee allows your listing to remain active for four months (or until you sell the item). After four months, the listing has to be renewed, so you have to pay 16p again. It's worth noting that if you set your listing to private, you will pay the listing fee only when the product sells.
Transaction Fee - When You Sell an Item
This one is pretty simple. When you finally sell your product through Etsy, the platform takes 6.5% of the total sale price. Keep in mind that this fee takes into account shipping costs, gift-wrapping services, the cost of personalization (if offered), and Etsy taxes.
Payment Processing Fee - Because the Purchase Is Conducted Through Etsy Payments
When a customer purchases an item from you, the purchase goes through Etsy Payments. This is the standard purchasing platform for Etsy, and it allows buyers to pay via numerous methods, from credit cards to Apple Pay, Google Pay, and even gift cards. The payment processing fee is 4% of the total sale price plus 20p. While paying another fee might be irritating, it's important to note that Etsy Payments ensure the safety and security of each transaction for both the seller and the buyer.
How to Keep Track of Your Fees?
When you figure out how selling on Etsy works, the number of items you'll sell will just keep increasing. This might make it difficult to keep track of all the fees you pay to the marketplace platform. However, it's wise to have those numbers written down somewhere. Here's how to find all the information about your transactions:
- Go to your Etsy account and click on Shop Manager,
- Find the Finances section,
- Select Payment Account.
Here, you can find detailed records of all your transactions. The page will show all the recent activity, and since it's a live view of your finances, the Current Balance can change if you make a sale while checking this page. You can also find information about the monthly statements at the bottom of the page. This can be downloaded so you can analyze the numbers more easily.
Of course, no one likes paying fees on Etsy, so we do whatever we can to lower them. While you can't decrease them significantly, there is a trick you can try. Offer your buyers bundles; bundling items means you'll save on several listing fees. Try to price your items in a way that will cover the fees - account for them when you're setting the price.
Thinking of Expanding Your Business to Other Marketplaces? Use Our Crosslisting Software to Ease the Process
When you gain a bit of experience selling on Etsy, you'll start considering other online selling platforms. There's a lot of potential for business growth if you know what you're doing, but crosslisting can be too complex if you don't use a crossposting tool to manage everything effectively. Zipsale is here to assist you with the crossposting process - our listing software will take the stress out of your work. We know you won't regret giving Zipsale a chance. Sign up today and enjoy quick and effortless crosslisting!
