Guide · By DQ · October 5, 2026
A lot of Etsy pricing advice starts with "materials × 2" or "cost plus labour plus a markup." Those rules are a reasonable start, but they ignore what Etsy takes out of each order. Some of those fees are percentages, some are fixed, and one of them shows up only when an ad brought the buyer. Price a listing without them and it can look profitable while it quietly loses money.
This guide gives you a pricing formula that builds in Etsy's fees, shows it on two real-world-style examples, and explains how to plan for Offsite Ads. Fee figures come from Etsy's Help Center (linked at the end) and use US rates. Etsy changes fees from time to time, so check Shop Manager before repricing.
For a US seller using Etsy Payments, a normal sale with no ads involved carries:
Two more can apply (see Etsy Ads vs Offsite Ads for how they compare):
Outside the US, the 6.5% and $0.20 stay the same, but processing differs. The UK is 4% + £0.20, for example, and Germany, France, Spain, Italy and the Netherlands are 4% + €0.30. Some countries also have a regulatory operating fee.
Write down what you actually spend to fulfil one order:
Call the amount the buyer pays you (item price + shipping charged) the order total. With US rates and no ads:
Etsy fees = 9.5% × order total + $0.45 (6.5% transaction + 3% processing, plus $0.25 processing + $0.20 listing)
If you want a target profit margin m on the order total, the order total you need is:
Order total = (your costs + $0.45) ÷ (0.905 − m)
Then subtract whatever you charge for shipping to get the item price.
To plan for Offsite Ads, subtract the ad rate in the denominator as well:
Order total = (your costs + $0.45) ÷ (0.905 − ad rate − m)
The formula ignores sales tax (Etsy also charges processing on it, so taxed orders cost slightly more) and the $100 Offsite Ads cap, which only matters above about $667 at 15%.
Your costs: $8.00 product, $4.50 postage, $0.50 packaging, for $13.00 in total.
Target 30% margin, organic sale: Order total = ($13.00 + $0.45) ÷ (0.905 − 0.30) = $13.45 ÷ 0.605 = $22.23
Check: fees = 9.5% × $22.23 + $0.45 = $2.56. Profit = $22.23 − $2.56 − $13.00 = $6.67, which is 30.0%.
Same target, but the sale comes through Offsite Ads at 15%: Order total = $13.45 ÷ (0.905 − 0.15 − 0.30) = $13.45 ÷ 0.455 = $29.56
At 12% (shops that have passed the $10,000 threshold), the same formula gives $27.73.
| Pricing approach | Order total needed for 30% margin |
|---|---|
| Organic sales only | $22.23 |
| Survive Offsite Ads at 12% | $27.73 |
| Survive Offsite Ads at 15% | $29.56 |
Now look at it the other way. If you priced at $22.23 and an Offsite Ad brings the sale at 15%, the extra fee is $3.33. Profit falls from $6.67 to about $3.33 and the margin halves.
Your costs: $0.60 product, $0.80 postage, $0.20 packaging, for $1.60 in total. No separate shipping charge.
At a $3.00 price: - Fees = 9.5% × $3.00 + $0.45 = $0.74 (about 25% of the price) - Profit = $3.00 − $0.74 − $1.60 = $0.67 (22%) - With a 15% Offsite Ads fee on top: profit = $0.22 (7%)
To reach 30%, you'd need $3.39 for organic sales and $4.51 to survive a 15% Offsite Ads sale.
This is why cheap listings are usually the first to go wrong. The $0.45 of fixed fees is 2% of a $22 order but 15% of a $3 one. Bundles ("set of 3"), minimum order sizes or higher-value variants are often a better fix than shaving costs.
You have three honest options:
Whichever you choose, check your lowest-priced listings first. A 15% fee on top of the fixed fees can turn them negative.
Re-run the numbers whenever postage rates, material costs or Etsy's fees change, and whenever you add discounts or free shipping. Free shipping doesn't remove fees. If you build the postage into the item price, the 6.5% and processing still apply to the whole amount.
If you'd rather not keep a spreadsheet, Canopio has a free calculator that applies these fees to one order (organic, Etsy Ads or Offsite Ads) and works backwards from a target margin to a price. It runs in your browser. There's also an optional $9.90 one-time Shop Audit (no subscription) that runs the same check across every live listing. Canopio is independent and not affiliated with Etsy, so always confirm rates against Etsy's pages below.
There's no official benchmark. It depends on your product, time and goals. What matters is calculating margin after all Etsy fees and your real shipping cost. A "50% margin" measured before fees can be much thinner once fees come out.
Yes. Etsy's 6.5% transaction fee and payment processing both apply to shipping you charge. Calculate fees on the order total (item + shipping), not the item price alone.
If the listing auto-renews after a sale, or the buyer orders more than one unit, Etsy charges $0.20 for the renewal or for each additional quantity.
Add the ad rate (15%, or 12% for shops past the $10,000 threshold) to your fee percentage, as in the formula above. The fee is capped at $100 per order.
Canopio is independent and not affiliated with Etsy, Inc. Examples are hypothetical and use US rates unless noted. Confirm current fees in your Shop Manager.