How Much Does It Cost To Open An Etsy Shop 2024?

Online businesses can be pretty profitable, and if you are hoping to start a business in 2024 or simply want to take your existing business online, then what better place than Etsy? Before setting up your online Etsy shop, however, you may want to find out “How Much Does It Cost To Open An Etsy Shop?”

Since there are so many ways to run an online business, knowing your options and the costs associated with them can really help. So keep on reading as we reveal to you the cost of starting a business on Etsy.

How Much Does It Cost To Open An Etsy Shop

How Much Does It Cost To Open An Etsy Shop 2024?

Well, earlier it was free to set up a shop on Etsy. However, as of 2024, Etsy has started charging $15 as one-time set-up fee to open an Etsy Shop.

Other than this, you will have to pay a small fee while listing your products, along with a transaction fee when the product sells. (Keep on reading to see how much Etsy charges for listing and payment processing.)

In spite of these charges, selling on Etsy is much more affordable than selling on your own website. If you choose the latter, then you will have to buy a domain, template, hosting, some kind of plugin, etc.

In many cases, you will be charged for your hosting and domain annually, which can be a few hundred dollars. This is why selling on Etsy is always economical.


Step-by-Step Video Tutorial to Set Up an Etsy Shop


Understanding Etsy Fees

Understanding Etsy Fees

Now that you know the cost of setting up a shop on Etsy let us see the additional cost that you would have to bear to sell your products.

Listing Fees

So, for each time that you list for sale on Etsy, you will be charged a listing fee of $0.20 USD for each item. You will be charged this listing fee whether or not the items sell.

Also, the listings on Etsy.com expires after four months. This means that if you list a product on Etsy and if it does not sell after four months, then the listing for that product will expire and will no longer be visible to the customers unless you renew the listing again.

If you list multiple quantities of the same item, even then, you would be charged $0.20 as a listing fee, which will auto-renew after the expiry of four months.

Transaction Fees

Now, if your product listing sells, then you would also have to bear transaction fees of 6.5% of the price you display for each listing, along with the gift wrapping and shipping charges.

This fee is charged in your local currency. For example, if you make sales of $100, then you would have to pay transcription fees of $6.50.

Now, if you sell from the U.S., the transaction fee will not apply to sales tax. However, if you sell from outside of the U.S., then the transaction fee will apply to the listing price.

Promotional and Advertising Fees

Etsy offers multiple ways to promote and advertise your products, such as Offsite Ads and Etsy Ads. Let us have a look at how both of these work and differ from each other:

Etsy Ads 

Using this feature, you can advertise your products by setting a budget that is within the limit you are willing to pay for the advertisement.

Your daily maximum budget can be set above or at the pre-determined amount set by Etsy. Etsy will not charge you more than your daily maximum set budget.

Now, this ad fee is charged on a recurring basis and is deducted from your current balance, which is then reflected in your payment account.

Offsite Ads Fees

Now, in offsite ads, you are only charged when a customer purchase your product through the ad.

Offsite ads, as the name suggests, are displayed on social media platforms like Facebook, Google, Instagram, etc.

Even though you are not supposed to pay when a customer clicks on the ad and does not buy your product, Etsy’s offsite ads fee is pretty high.

Etsy offsite ads fee is 12% for sellers who have made $10,000 in the last 12 months and 15% for the rest of the sellers. Additionally, offsite ads are compulsory for sellers who make more than $10,000 in 12 months.

Subscription Fees

Etsy sellers can opt for Etsy’s subscription model, which offers a wide range of additional features and tools. Etsy’s subscription fee is $10 per month. Your subscription fee is deducted automatically from your monthly payment account unless you cancel the subscription. 

Etsy’s $10 subscription gives you the following benefits:

  • A discount on a custom web address for your Etsy shop
  • Advanced customization options for your Etsy shop
  • A monthly budget of credits for your Etsy ads and listings
  • Discounts on the packaging and promotional material like business cards, signs, boxes, etc.
  • Restock option from customers for items that are out of stock

In-Person Selling Fees

Etsy also offers in-person selling through an option called Square. Sellers can link their Etsy account with their Square account and can accept and sell products in person.

Sellers using Square do not need to pay Etsy’s processing fees. However, they need to pay Square’s processing fees of $0.1 + 2.6% of the final sale price. Or $0.15 + 3.5% for manually entered payments.

Payment Processing Fees

Every time a product is sold on your Etsy shop, you are required to pay Etsy’s payment processing fees.

This fee can vary depending on the location of your bank account. For sellers in the U.S., the processing fee is 3% + 0.25 USD.

Here’s a list of countries and their respective payment processing fees if you are selling outside of the U.S.

Regulatory Operating Fees

Regulatory fee is an additional fee that is charged in some countries (Shown below). This fee is charged as % of the item price + postage and gift wrap (excluding tax).

Here are some of the countries and their Etsy regulatory operating fees:

  • France – 0.47% (previously 0.40%)
  • UK – 0.32% (previously 0.25%)
  • Italy – 0.32% (previously 0.25%)
  • Turkey – 1.10% (no change)
  • Spain – 0.40% (no change)

Shipping Fees

In some countries, Etsy allows sellers to purchase their own shipping labels. The cost of the shipping label here depends on the carrier, weight, origin, destination, and dimensions of the package.

Pattern Fees

If you want to create a personalized website on Etsy, then you can use Etsy’s pattern tool, which is free for 30 days. After 30 days, you will be charged $15 a month. Along with this, you may also be charged local taxes on the monthly subscription fee.

Currency Conversion Fee

Lastly, you may also have to bear a currency conversion fee if you list your product in one currency but receive the amount in a different currency.

For this, Etsy charges a currency conversion fee of 2.5%, which is deducted from your sale amount.


3 Realistic Examples of Etsy Fees

Now that you are familiar with all kinds of Etsy fees let us look at three different scenarios with different products with different prices:

Note: These examples do not include fees like Etsy plus subscription, Etsy ads, currency conversion rate, etc., as these can vary from seller to seller:

1. Low-Priced Item

Low-Priced Item

Our first example is of a low-priced item like a T-shirt. This items has relatively low selling and shipping cost becuase it is light in weight and has a small size.

Price of the product: $15

Shipping cost: $3

Product cost: $5

Shipping cost: $3

Total product + shipping cost: $8

Listing fee: $0.2

Transaction fee: 6.5% (shipping + product price) = $1.17

Payment processing fee: 3% (shipping + product price) + $0.25 = $0.79

Total Etsy fees: $2.16

% of Etsy fees of product price: 14.4%

% of Etsy fees of total costs: 21.3%

2. Mid-priced Product

Mid-priced Product

Our next product is a jewelry piece, the price of which is more than the above-mentioned product.

Price of the Product: $60

Shipping cost: $8

Product cost: $20

Total product cost + shipping cost: $28

Listing fee: $0.2

Transaction fee: 6.5% (shipping + product price) = $4.42

Payment processing fee: 3% (shipping + product price) + $0.25 = $2.29

Total Etsy fees: $6.91

% of Etsy fees of product price: 11.5%

% of Etsy fees of total costs: 19.8%

3. High-Priced Product

High-Priced Product

Now, let us take an example of a handmade canvas painting that can be pretty expensive. Because of its delicate nature, extra protection and packaging might be needed, which will increase the shipping cost. 

Price of the Product: $900

Shipping cost: $50

Product cost: $300

Total product + shipping: $350

Listing fee: $0.2

Transaction fee: 6.5% (shipping + product price) = $61.75

Payment processing fee: 3% (shipping + product price)+ $0.25 = $28.75

Total Etsy fees: $90.7

% of Etsy fees of product price: 10.1%

% of Etsy fees of total costs: 20.6%


Wrap Up

We hope the costs mentioned above have helped you understand how much it costs to open an Etsy shop.

Other than this, do not forget to add the cost of labels, custom packaging, bubble wraps, boxes, etc., that you may use to pack and ship your products.

In spite of the number of fees that Etsy charges, it is quite affordable to open a shop on Etsy, and you can totally consider it to embark on your online business adventure.


FAQ’s

Is selling on Etsy worth it?

Yes, selling on Etsy is worth it because of the low selling fees, access to many potential customers, easy interface, etc. If you were to run a business on your website instead of selling on Etsy, then you’d have to bear much more cost. 

Is selling on Etsy difficult?

Setting up your shop on Etsy is pretty easy. However, selling requires patience and long-time commitment. You will need to run ads to reach potential buyers, be responsive, renew your listings, etc. Overall, selling on Etsy requires continuous efforts. 

What kind of items sell best on Etsy?

Here is a list of the top-selling items on Etsy:

  • Jewelry
  • Accessories
  • Wedding Items
  • Paper & Party supplies
  • Home & Living
  • Vintage Items
  • Clothing
  • Art & Collectibles

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