How Much Does It Really Cost To Sell On Etsy (Everything!)

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Curious about the costs of starting an Etsy shop? Let’s break it down:
Etsy Fees:
• Listing Fee: $0.20 per item for 4 months, charged every time you list or relist an item.
• Transaction Fee: 6.5% of the order total (including shipping and gift wrapping).
• Processing Fee: Varies by country, but in the US it’s 3% + $0.25 per transaction.
Example:
• Item Price: $25
• Shipping Cost: $5 (paid by customer)
• Total Fees: 9.5% + $0.45 per sale
• Calculation:
• Shipping: $5
• Transaction and Processing Fees: $2.85 (9.5% of $30) + $0.45 = $3.30
• Total Fees: $8.30
• Take Home: $30 - $8.30 = $21.70 (about 72% of the total)
Other Expenses:
• Labor
• Materials
• Equipment
• Shipping supplies
• Taxes
Advertising Costs:
• Etsy Ads
• Offsite Ads
Importance of High Profit Margins:
Starting with high profit margins is crucial to cover additional costs.
Example:
• Selling a shirt:
• Blank cost: $8
• Shipping supplies: $2
• Advertising: $5
• Other expenses: $15
• Total Costs: $23.30
• Take Home: $30 - $23.30 = $6.70 (22% profit margin)
Final Thoughts:
While starting on Etsy incurs about 10% in fees, it’s a trade-off for access to millions of potential buyers. For comparison:
• Shopify: 2.9% + $0.30 per transaction
• eBay: 6-15% depending on the category
• Amazon: Average 15%, can be up to 45%
• Poshmark: 20%
Starting on Etsy can be cost-effective with careful planning and high-margin products. Stay tuned for more insights!
#EtsyCosts #EtsySelling #EtsyFees #EtsyShop #OnlineBusiness #SellingOnEtsy

[@ottorollin395]

Great video !!!

[@hannahmitchell87]

Thanks for breaking this down! I thought offsite ads were set at 12 & 15%? I didn't realise they fluctuated. Mine never seem to

[@handmadeandbeyond]

You’re correct it is 12 & 15% I misspoke. Now I have to figure out how to dub it over lol.

[@hannahmitchell87]

@handmadeandbeyond sorry! 😅 it's still an excellent video! 😊

[@SusanGivens-mx1sr]

LL, I would love to visit your shop on Etsy. What is the name?

[@Ynotbehumanfirst]

I mean dang it looks like it’s impossible to make profit after all the expenses you are only hitting $2-$4 😅

[@handmadeandbeyond]

Not impossible but you need do a heck of a lot more quantity. This is why figuring out your profit margin before you get deep into your business is key.