Congratulations!
You opened your Etsy shop, made your first sale, and now you’re looking at your financial account wondering what all these fees are and where your hard earned money is going.
Etsy Fees Broken Down and Explained
There are 3 main fees that show up under your payment account in the finances section. If you are running any promotions such as promoted listings, Google ads, or Facebook ads, they will show up in this section as well as marketing fees.
Where to Find them
On the Computer
Click on the finances tab on the lefthand side of your shop manager screen, then click on the first tab labeled payment account.
Mobile App
Click the more button on the far right side at the bottom, then click Finances, and then payment account.
Every time you make a sale, it will appear 3 times under your payment account with three different deductions under the fees and taxes section.
What they Are
Listing fee: $.20 will be deducted if you have auto-renewal selected for your listing. This is a standard fee for any listing on Etsy no matter what you sell.
Transaction: The Etsy Selling Fee is 5% of your total selling price including shipping.
Sale: The Payment Processing fee in the US is 3% + $.25 of your total price including shipping. If you are located outside of the US you can find the amount charged here.
But what does this all mean to you?
We sell digital downloads that are mostly priced at $2.99. There are bundles that are more expensive but for this example we’ll use the $2.99 as an example. Since it’s a digital download, we also don’t have to factor in shipping, but if you sell items that ship, simply add the shipping price to the price of the item prior to calculating.
In order to figure out how much you are actually making on a digital item that sells for $2.99 you could use my simple Google sheets document here or you could do it manually like the following:
Multiply $2.99 by the 5% Etsy Selling Fee
2.99 x .05 = .1495
Step 2. Multiply $2.99 by the 3% Payment Processing Fee (Check for your countries percentage if outside the US) then add the Flat Rate Processing Fee $.25
2.99 x .03 = .0897
.0897 + .25 = .3397
Step 3. Add the totals from step 1 and step 2. If you have your listing set to auto renewal include the $.20 listing fee in the fees total
.1495 + .3397 + .20 = .6892
Step 4. Subtract the total fees from the price of your item.
2.99 – .6892 = 2.3008 ($2.30)
After fees we make $2.30 on 1 item priced at $2.99.
But About Other Costs?
Please note that this is the net profit based solely on price, shipping charged, and Etsy transaction fees and does not take into account equipment, shipping supplies, or hourly wages. In order to calculate your total net, profit you would have to subtract all costs related to creating, processing, and shipping your item.
I hope you found this post helpful in understanding how to read the different fees charged on the Etsy finance account page. If you have any questions please contact us via our contact page.
We are not affiliated with Etsy Inc. and do not represent their business or interests. This is simply an informative post written in our own understanding of the website.