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In part one of this post, I covered how to register for an Etsy account (and I offered you 40 free listings) and how to list your first item, in part two I highlighted some things that you needed to finish up after opening your Etsy shop, and this post will cover the fees for selling on Etsy.
After you use your 40 free listings on Etsy, each listing will cost you $0.20 to list on Etsy. Your listing will be good for 4 months – or until the item is sold. When you sell something on Etsy, you are charged a 3.5% transaction fee, based on the final sale price (the 3.5% does not include shipping or tax). If your customer pays through Etsy’s direct checkout, you are charged 3% of the total order (the 3% includes shipping and tax) plus $0.25. If your customer chooses to pay through Paypal standard checkout, you’ll pay 2.9% plus $0.30. Etsy takes their fees directly from your incoming money, and deposits the remaining money to your bank account each Monday – although you can request it sooner if needed.
Let’s recap the Etsy fees:
If your customer pays through Etsy direct checkout you’ll pay: ($0.20) + (3.5% transaction fee of the final sale price) + (3% of the total selling price + $0.25)
If your customer pays through Paypal standard checkout you’ll pay: ($0.20) + (3.5% transaction fee of the final sale price) + (2.9% of the total selling price + $0.30)
My husband will be the first to tell you that I am not a numbers girl, and there are several Etsy fee calculators available online. Experiment with a few of them and choose your favorite.
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Disclosure: In the event that you create an Etsy shop through my invitation to receive 40 free listings, I will receive free listings as well. This costs nothing additional to you, and helps keep my content on this blog free.
Great article and so timely. I was just chatting about the fee setup today with some friends in my Mastermind group. We noticed that lots of Etsy sellers are under the misconception that if they use PayPal they are somehow getting double-charged. They don’t realize that Etsy direct checkout is one route with its own set of fees and PayPal is just another route. It pays to do both! I know tons of people who will be poised to purchase and when they discover a shop doesn’t take PayPal, they go elsewhere. It’s all about the convenience of not having to go digging through your purse! 😀 Well written article, Christine, thanks so much. Now I’m going to read all your other articles too!
Thank you Sarah, I hope you enjoy my other articles, too!
Hi Christine! I have a question about how the fees work when selling svg files in an Etsy shop. I’m a little confused by the wording on Etsy’s website- for 4 months or until the item is sold. Does that mean you have to pay the $0.20 listing fee again each time the same svg file is sold? Even though it is a digital download item? Thanks so much for your help!
Correct. You’d pay the $0.20 each time the file sells.