Etsy's transaction fee is the 6.5% Etsy takes from each sale, charged on the item price plus what the buyer pays for shipping and gift wrap.
6.5% of (40 item + 5 shipping) = 2.93 USD transaction fee, before the listing and processing fees.
See every Etsy fee on one order, and the price for the profit you want.
Also used in: Profit Margin Calculator
It's the biggest of several fees on each order, so pricing without it overstates profit.
Etsy also charges a listing fee of 0.20 USD per item (again for each extra unit sold), payment processing that depends on the shop's country (3% + 0.25 USD per order in the United States, on the whole order including tax), and in some countries a regulatory operating fee. Offsite Ads, if a sale comes through one, add 15% or 12%.
A seller lists a print at 40 USD with 5 USD shipping.
The transaction fee is 6.5% of 45 = 2.93 USD. With the 0.20 USD listing fee and US payment processing on top, the fees on that order come to several dollars, which she adds to her costs before setting the price.
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