Like any other business Etsy charges you fees for hosting your online store. The fees vary depending on the price of your product and how many times it is listed before it is sold. At the end of every billing cycle Etsy will provide you with an invoice with the fees for hosting your store. Below is a run down of the costs associated with having an Etsy shop.
Transaction Fees – Etsy charges 3.5% of the item sale price for each item sold through your Etsy store. If you sell an item for $10.00 you will be charged $0.35 for the sale. If you sell an item for $100 you will be charged $3.50. The charge applies to the product sale price only and not to shipping and taxes (if applicable).
Listing Fees – Each item added to your online inventory incurs a $0.20 listing fee. The listing fee is non-refundable, so even if your item does not sell you will be charged this fee. When listing multiple quantities, you will be charged the $0.20 initial listing fee and a further $0.20 each time an item is sold. This means that if every item sells you will be charged $0.20 for each item. If you choose to remove any unsold items, you will have only been charged for the sold items.
Expiry & Auto Renew – Listings expire after 4 months. If you choose to relist your item you will be charged $0.20 for a new listing. Etsy has an auto-renew function, which will relist any unsold items automatically so that you don’t have to keep track of every listing. This functions works well if you have multiple products and quantities for sale.
Currency – All Etsy invoices are listed in US Dollars. It is recommended that you list your items in the currency of your nominated bank account so that you do not incur any currency conversion fees. Etsy invoices are shown in US Dollars, so keep this in mind when paying your monthly bill.
Etsy Invoicing – You will have 15 days from the issues date to pay your Etsy invoice in full or your account will be considered overdue and may be suspended. You can pay your Etsy bill via Paypal, credit card, debit card or, if you’re registered for Direct Checkout, via your Shop Payment Account balance.
Direct Checkout – This function allows you to set up a Shop Payment Account where all of your funds are deposited regardless of how a buyer chooses to pay. There is no fee for setting up the direct checkout service and the function helps minimize fees from third party organisations. For example, if a buyer were to pay directly into your Paypal account the payment would be subject to Paypal’s own fees of use. With direct checkout the funds are only subject to Etsy’s transaction fee and are deposited into your Shop Payment Account. From here you can pay your Etsy invoice, purchase items on Etsy and send the payment to any linked bank account without incurring additional fees.