Etsy Fee, Profit & Pricing Calculator [2023]

What are some common pricing strategies?

There are several popular pricing strategies that you can use to set prices for products or services. Some of the most common include:

• Cost-plus pricing: This strategy involves setting a price that is a markup above the cost of producing or acquiring the product or service. The markup is typically a percentage of the cost, such as 20%.
• Value-based pricing: This strategy involves setting a price based on the perceived value a customer will receive from the product or service. This approach takes into account the benefits, features, and quality of the product or service, as well as customer demand and competition.
• Penetration pricing: This strategy involves setting a low price initially to gain market share and increase brand awareness, which can be a good strategy for new businesses or products.
• Skimming pricing: This strategy involves setting a high price initially and then gradually lowering it over time. This is often used for new products or services that have a high level of exclusivity or novelty.
• Dynamic pricing: This strategy involves setting prices that change in response to market conditions or customer behavior. This can be used to increase sales during slow periods or to adjust prices based on demand.
• Bundle pricing: This strategy involves offering multiple products or services at a discounted price when they are purchased together.

What is a listing fee?

Etsy charges you a listing fee of $0.20 USD for each item that you list on Etsy. When you list multiple quantities of the same item, listings will be automatically renewed at $0.20 USD after each of the items sells.

Etsy will also automatically renew your listings at the end of the four-month listing period.

What is a Transaction fee?

When you make a sale through Etsy, you pay a transaction fee of 5% of the price you display for each listing plus, the amount you charge for shipping and gift wrapping. Different practices also apply depending on where you sell.

In those cases Etsy collects sales tax, VAT, GST, or HST, the transaction fee will not apply to the taxes. However, in those cases you collect taxes, the transaction fee applies to the listing price, which includes applicable taxes.

What is a payment processing fee?

You pay a processing fee for each transaction through Etsy Payments. The payment processing fee varies depending on the location of your bank account. In specific markets, you also pay a fixed deposit fee.

What is a currency conversion fee?

If your shop currency is different from the bank account currency, Etsy will charge a 2.5% currency conversion fee.

If you are about to start a new shop on Etsy, investigate if you can have the same shop currency as your bank account. It is not possible to change it later.

What is an Etsy Offsite Ads fee?

If you are using Etsy Offsite Ads, Etsy will charge you for each order attributed to an Offsite Ad. The fee depends on the amount you made from the sale and your total revenue.

If your total revenue during the last year is less than $10,000 USD, you’ll be charged 15% for each order attributed to an Offsite Ad.

If your total revenue during the last year is $10,000 or more, you’ll be charged 12% for each order attributed to an Offsite Ad.

What is a regulatory operating fee?

As of July 1, 2021, sellers in France, the United Kingdom, Italy, Spain, and Turkey will pay a regulatory operating fee. This fee is a percentage applied to the item price and shipping cost.

Are there any other fees that I need to know about?

If you use extra functionality on Etsy then more fees might apply for Etsy Ads, Etsy Plus, payment processing for in-person sales, shipping labels and for Etsy's pattern tool.

What is Margin?

Margin describes the percentage of your revenue that has turned into profit. You can increase your margin by either raising your prices or lowering your costs. In a break-even scenario, when your revenue is just sufficient to cover your expenses, your profit and margin is 0%.

What is Return on Investment?

Return or Return on Investment (ROI) is your profit divided by your expenses. In other words, your return for the investment compared to the investment cost. Use ROI to compare the profitability of different investments.

What is Effective fee rate?

The effective fee rate is an excellent method for calculating how much of your revenue that you pay to Etsy. You calculate your effective fee rate by dividing the total fees with the total revenue.

What is Values Added Tax (VAT)?

Value Added Tax (VAT) and Goods & Services Tax (GST) are taxes on goods and services sold for consumption. VAT is included in the final prices and is later passed to the government by the business owner. The percentage of tax added varies between countries.