How to Price Etsy Listings Without Losing Profit (Fees, Ads and Shipping)
How to price Etsy listings so you keep your profit: cost to make, Etsy fees, Offsite Ads, free shipping and sales built into one price, with examples.
In this guide
Etsy fees are small one at a time, and they add up fast. A listing fee, a transaction fee on the item and shipping, a payment processing fee, and sometimes Offsite Ads. If you price by looking at other shops, it is easy to make a few dollars and not notice. This guide shows how to price Etsy listings from your cost, with fees, shipping and sales built in.
- Etsy price = (cost to make + profit) ÷ (1 − fee rate), plus a fixed amount for per-order fees.
- Common US fees include a $0.20 listing fee, a 6.5% transaction fee and payment processing of about 3% plus $0.25. Check Etsy for your country.
- Offsite Ads can add a 12% or 15% fee on attributed sales. Price so you still profit when they apply.
- If you offer free shipping, add the shipping cost into the item price before fees.
Why Etsy prices lose profit
Etsy takes its transaction fee on the item price and the shipping charged. Payment processing also applies to the total. If you add these to your cost after setting a price, you are already short.
Sales and coupons come out of your profit, not Etsy's fees. A 20% off sale on a thin price can wipe out your profit. Price with room for sales from the start.
The steps
1. Find your cost to make
Materials, packaging, labor and overhead. This is your floor.
2. Add profit
Add 25% to 40% profit.
3. Divide by 1 minus your fee rate
About 6.5% transaction plus about 3% payment fees is roughly 10%. Divide by 0.90. Add the fixed fees such as the $0.20 listing fee and $0.25 payment fee.
4. Add free shipping into the price
If you offer free shipping, add your shipping cost before you divide by the fee rate.
5. Test a sale and Offsite Ads
Check the profit at 20% off and with an Offsite Ads fee. If it drops below zero, raise the price.
Worked example: three Etsy listings
$20 an hour, 10% overhead, 30% profit and about 10% Etsy fees. Fixed fees are small and covered by rounding up.
| Beaded earrings | Custom shirt with free shipping | Candle with free shipping | |
|---|---|---|---|
| Materials and packaging | $3.60 | $6.40 | $5.25 |
| Shipping built into price | $0.00 | $5.00 | $6.50 |
| Labor at $20.00/hr | 0.3 hr = $6.00 | 0.3 hr = $6.00 | 0.33 hr = $6.60 |
| Overhead (10%) | $0.96 | $1.74 | $1.84 |
| Cost to make | $10.56 | $19.14 | $20.19 |
| Plus 30% profit | $13.73 | $24.88 | $26.24 |
| Cover 10% selling fees (divide by 0.90) | $15.25 | $27.65 | $29.16 |
| Suggested price | $16 | $28 | $30 |
Building shipping into the price before fees keeps your profit the same whether the buyer pays shipping or you offer it free.
What a sale or Offsite Ads does to profit
| Listing | Profit at full price | Profit at 20% off | Profit with a 15% Offsite Ads fee |
|---|---|---|---|
| Earrings | $3.84 | $0.96 | $1.44 |
| Custom shirt | $6.06 | $1.02 | $1.86 |
| Candle | $6.81 | $1.41 | $2.31 |
Profit here is the price after fees minus the cost to make, with labor already paid. A 20% off sale cuts profit sharply. Offsite Ads at 15% reduce it further. If any number is negative, raise the price or skip deep sales.
Pricing mistakes to avoid
- Copying the lowest price in search. Low-priced shops may be new, hobby sellers, or losing money. Price from your own cost and compete with photos and reviews.
- Forgetting fees on shipping. Etsy charges its transaction fee on what the buyer pays for shipping too. Include shipping in your fee math.
- Running 30% off sales on thin margins. Check the sale price in your calculator first. A deep sale on a thin price can mean you pay to make the sale.
- Ignoring Offsite Ads. If your shop is enrolled, some sales will carry the ad fee. Make sure the price still works when it applies.
Etsy pricing checklist
- Cost to make known.
- Profit added before fees.
- Price divided by 1 minus your fee rate.
- Shipping added in if you offer free shipping.
- Profit checked at your usual sale percent.
- Profit checked with Offsite Ads.
- Fees checked against Etsy's current fee page.
Price Etsy listings with fees built in
Type your cost, profit and shipping into the peach cells. The calculator shows Etsy fees, profit and a price that keeps your margin.
Get the Etsy Fee and Profit CalculatorCalculators that help
- Etsy price: Set a price from your cost. Use the Etsy Price Calculator.
- Offsite Ads: See what ad fees do to profit. Use the Etsy Ads and Offsite Ads Calculator.
- Sales and discounts: Check profit at any sale percent. Use the Etsy Discount and Sale Price Calculator.
- Break-even: Find your monthly sales goal. Use the Etsy Break-Even and Sales Goal Calculator.
Common questions
What fees does Etsy charge sellers?
In the US, common fees include a $0.20 listing fee, a 6.5% transaction fee on the item and shipping, and payment processing of about 3% plus $0.25. See [Etsy Fee Basics](https://help.etsy.com/hc/en-us/articles/360035902374-Etsy-Fee-Basics) for current fees.
How do I add Etsy fees to my price?
Divide your cost plus profit by 1 minus your fee rate. With about 10% in fees, divide by 0.90.
Should I offer free shipping on Etsy?
Many sellers do. Add the shipping cost into the item price before fees so your profit stays the same.
What are Etsy Offsite Ads fees?
Etsy charges a fee on sales from Offsite Ads, often 12% or 15% depending on your sales level. Price with that in mind.
Should I run sales on Etsy?
Only if your price has room. Check profit at the sale price first.
How do I compete with low prices on Etsy?
Compete on photos, quality and reviews instead of price. Low prices with fees often mean no profit.
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