Etsy Startup Costs 2026: What You'll Actually Pay

Quick Answer: Starting an Etsy shop costs $0-50 upfront, plus ongoing fees of 10-12% per sale

You can open an Etsy shop for free. But selling costs money.

Here's the breakdown: $0.20 per listing, 6.5% transaction fee, and 3% + $0.25 payment processing. That's roughly 10% of every sale going to Etsy before Offsite Ads (if applicable). Add in a realistic startup budget of $10-50 for your first few listings, and you're looking at minimal upfront investment.

The catch? Those percentages add up fast. A $500/month seller pays around $60 in fees. A $10,000/month seller pays over $1,000. Knowing exactly what you'll pay before you list your first item matters.

Quick Cost Breakdown

Upfront costs to open an Etsy shop: $0-50

• Account creation: Free
• First 10-25 listings: $2-5
• Basic packaging supplies: $20-30 (optional)
• Photography setup: $0-30 (phone camera works fine)

Ongoing costs per sale: 10-27% of each sale

• Listing fee: $0.20 (per listing per 4 months or sale)
• Transaction fee: 6.5% of sale price + shipping
• Payment processing: 3% + $0.25
• Offsite Ads: 12-15% (only on sales from external ads, mandatory if $10K+/year)

Cost Type	Amount	When Charged
Listing fee	$0.20 per listing	When you publish a listing
Transaction fee	6.5% of sale price + shipping	When item sells
Payment processing	3% + $0.25	When buyer pays
Offsite Ads	15% of sale (12% if $10K+ annual)	On sales from external ads
Shipping labels	Carrier rates (discounted)	When you buy label on Etsy
Etsy Ads	You set budget	Daily, if you enable ads
Etsy Plus	$10/month	Monthly subscription (optional)

Cost to Open an Etsy Shop: $0 (Really)

Opening an Etsy shop costs nothing. You create a free account, set up your shop profile, and you're ready to list products. No monthly subscription. No setup fee. No payment required until you decide to list your first item.

The $0.20 listing fee only applies when you publish a product listing. Until then, you can browse, research competitors, and plan your shop completely free.

Who This Guide Is For

This guide is for anyone considering selling on Etsy. Maybe you've got handmade crafts piling up. Maybe you're thinking about opening a vintage shop or selling digital downloads. Either way, you need to know what Etsy takes from each sale and what it costs to get started.

I'll show you the math at different revenue levels so you can figure out if Etsy makes sense for your business.

Startup Costs: What You Need Before Your First Sale

The absolute minimum to start selling on Etsy is $0.20. That's one listing fee.

But realistically, you'll want more than one listing. Most successful Etsy sellers recommend starting with at least 10-20 listings to give buyers options and improve your shop's visibility in search results.

Here's a realistic startup budget:

Bare minimum ($2-4):

• 10 listings at $0.20 each = $2.00

Realistic starter budget ($10-50):

• 25-40 listings at $0.20 each = $5-8
• Basic packaging supplies = $20-30
• Shipping materials (if not passing cost to buyer) = $10-20
• Product photography backdrop or lighting = $0-30 (optional, phone works fine)

You don't need Etsy Plus, professional photos, or paid ads to start. Those come later. For a full list of what trips up new sellers, see our common Etsy beginner mistakes guide.

Pro tip: Before spending money on listings, use our Etsy profit calculator to make sure your product pricing will be profitable after all fees.

Per-Listing Costs

Every time you create a listing on Etsy, you pay $0.20. That listing stays active for four months or until the item sells, whichever comes first.

When the item sells (or after four months), the listing automatically renews for another $0.20. You can turn off auto-renew in your shop settings if you don't want this.

Multi-quantity listings work differently. If you list a product with a quantity of 10, you pay $0.20 upfront. Then each time one sells, Etsy charges another $0.20 to keep that listing active. So selling 10 items from one listing costs $2.00 in listing fees over time.

Per-Sale Costs (The Real Fees)

Listing fees are pennies. The real cost comes when you make a sale.

Transaction fee: 6.5% This applies to the total sale price including shipping. If you sell a mug for $20 and charge $5 shipping, Etsy takes 6.5% of $25 = $1.63.

Payment processing: 3% + $0.25 Same calculation. For that $25 sale, you pay 3% ($0.75) plus $0.25 = $1.00.

Total per-sale fees: roughly 10-12% For most sellers, combining transaction fees and payment processing eats about 9.5-10% of each sale. The exact percentage depends on your average order value (higher orders mean the $0.25 flat fee matters less).

Offsite Ads: 15% (or 12%) on certain sales Here's the fee that catches new sellers off guard. If Etsy advertises your product on Google, Facebook, Pinterest, or other platforms and someone clicks through to buy, Etsy charges an additional 15% Offsite Ads fee (12% if you make over $10,000 in annual sales).

You can opt out if you make less than $10K/year. Above that threshold, Offsite Ads are mandatory. This can push your total fees to 25% on certain sales. Learn more in our Etsy fees explained guide.

Want to see exactly what you'll pay? Use our Etsy fee calculator to run the numbers for your specific products.

Real Examples: What You'll Actually Pay at Different Revenue Levels

Math is easier with real numbers. Here's what Etsy fees look like at $500, $2,000, and $10,000 in monthly sales.

Monthly Revenue	Base Fees (10-12%)	With Offsite Ads	You Keep
$500	$56-61	$56-76	$424-444
$2,000	$213-218	$213-278	$1,722-1,787
$10,000	$1,030-1,050	$1,270-1,650	$8,350-8,970

$500/Month Seller

Let's say you sell handmade candles for $25 each. You make 20 sales per month.

Monthly costs:

• Listing fees: $4-8 (assuming 20-40 active listings with renewals)
• Transaction fees: $500 × 6.5% = $32.50
• Payment processing: ($500 × 3%) + ($0.25 × 20) = $15 + $5 = $20
• Offsite Ads: $0-15 (varies by traffic source, can opt out under $10K/year)
• Total fees: $56.50-75.50

That's 11-15% of revenue depending on Offsite Ads. You keep around $424-444.

$2,000/Month Seller

Now you're selling 50 candles per month at $40 each. Business is growing.

Monthly costs:

• Listing fees: $10-15 (more products, more renewals)
• Transaction fees: $2,000 × 6.5% = $130
• Payment processing: ($2,000 × 3%) + ($0.25 × 50) = $60 + $12.50 = $72.50
• Offsite Ads: $0-60 (varies by traffic source, can opt out under $10K/year)
• Total fees: $212.50-277.50

That's about 11-14% of revenue depending on Offsite Ads. You keep around $1,722.50-1,787.50.

$10,000/Month Seller

You're running a real business now. 200 sales per month at $50 average order value.

Monthly costs:

• Listing fees: $30-50 (larger catalog, frequent renewals)
• Transaction fees: $10,000 × 6.5% = $650
• Payment processing: ($10,000 × 3%) + ($0.25 × 200) = $300 + $50 = $350
• Offsite Ads: $240-600 (mandatory at $10K+ annual sales, 12% of ad-attributed sales)
• Total fees: $1,270-1,650

That's 12.7-16.5% of revenue including Offsite Ads. You keep around $8,350-8,730.

Notice how the percentage stays pretty consistent for base fees? That's because Etsy's fee structure scales proportionally. You'll always lose about 10-12% to base fees, plus an additional 12-15% on sales that come from Offsite Ads. At higher revenue levels, Offsite Ads become mandatory and can significantly impact your margins.

Hidden Costs Most Guides Don't Mention

Etsy fees are predictable. The costs that sneak up on new sellers aren't.

Photography equipment ($0-200) Phone cameras work fine. But if you want better product shots, you might spend $50 on a lightbox or $100-200 on a ring light and backdrop. Not required, but it helps.

Packaging supplies ($20-100/month) Boxes, bubble wrap, tissue paper, thank-you cards, branded stickers. Small stuff adds up. Budget at least $1-2 per order for packaging.

Shipping costs (variable) You can pass shipping costs to buyers (most sellers do) or offer free shipping and build it into your product price. Either way, someone pays. Etsy offers discounted shipping labels through USPS, UPS, and others—use them.

Keyword research tools (free to $10/month) Tools like eRank help you find what buyers are searching for. The free tier works fine when you're starting out. Paid plans run $5.99-9.99/month if you want more data.

Accounting software (free to $15/month) Track income and expenses for taxes. Wave is free. QuickBooks Self-Employed runs around $15/month. You need something.

Time (the biggest cost) Creating products, photographing them, writing descriptions, answering customer questions, packing orders, going to the post office. If you're making $15/hour after Etsy fees but spending 40 hours a week on your shop, you're making less than minimum wage. Factor in your time when calculating if Etsy is profitable.

Etsy Costs vs Other Platforms

Understanding Etsy's costs in context helps you choose the right platform for your business.

Platform	Upfront Cost	Per-Sale Fees	Monthly Fee	Best For
Etsy	$0-50	10-12% (up to 27% with Offsite Ads)	$0	Handmade, vintage, low volume
Shopify	$29-79	2.4-2.9% + 30¢	$29-79	High volume, own branding
Amazon Handmade	$0	15% + $0.99/item	$0 (or $39.99 Pro)	High volume, Prime customers
eBay	$0	12-15%	$0	Vintage, collectibles, auctions
Facebook Marketplace	$0	5% (capped at $8)	$0	Local sales, casual selling

The break-even point: Etsy becomes more expensive than Shopify around $2,500-3,000/month in sales. Below that, Etsy's zero monthly fee makes it cheaper. Above that, Shopify's lower per-sale fees save you money.

Optional Costs

These aren't required, but you'll see them pitched everywhere.

Etsy Plus ($10/month) Get custom shop sections, restock requests, business cards, and discounts on Etsy services. Worth it once you're established. Skip it when starting.

Etsy Ads (variable) You set a daily budget (minimum $1/day). Etsy promotes your listings in search results and on Google. Ads can work, but they also eat margin. Don't run ads until you have reviews and optimized listings.

Pattern by Etsy ($15/month) This gives you a standalone website connected to your Etsy shop. Most sellers don't need this. If you want your own domain, Shopify or Squarespace offer more control.

How to Minimize Your Etsy Costs

You can't avoid Etsy fees entirely, but you can minimize what you lose to them.

1. Price to cover fees (including Offsite Ads) Build 15-20% into your product pricing to cover Etsy's cut, including potential Offsite Ads fees. If your costs are $10 per item and you want $15 profit, don't price at $25. Price at $32-35 to account for all possible fees.

2. Opt out of Offsite Ads if under $10K/year If you make less than $10,000 in annual sales, you can opt out of Offsite Ads in your shop settings. This prevents the surprise 15% fee on certain sales. Once you cross $10K/year, Offsite Ads become mandatory.

3. Use Etsy shipping labels Etsy negotiates discounted rates with USPS, UPS, and FedEx. You'll save 20-30% compared to retail counter prices. Plus, labels auto-populate tracking info for buyers.

4. Photograph with your phone A newer smartphone (last 3-4 years) takes photos good enough for Etsy. Natural light near a window beats expensive studio lighting. Save the $200 camera investment for later.

5. Skip Etsy Ads until you have reviews Ads send traffic to your listings. But traffic doesn't convert without reviews. Get your first 10-20 sales organically through good SEO and competitive pricing. Then test ads.

6. Turn off auto-renew for slow sellers If a listing hasn't sold in 6-8 months, it's probably not going to. Turn off auto-renew and redirect that $0.20 toward listings that actually move.

7. Bundle products to increase average order value That $0.25 payment processing fee hurts more on a $10 sale than a $50 sale. Encourage larger orders with bundles or volume discounts to improve your margin.

Frequently Asked Questions

Is it free to open an Etsy shop?

Yes, opening an Etsy shop is completely free. You don't pay anything to create your seller account or set up your shop. You only start paying when you list items ($0.20 per listing) and make sales (6.5% transaction fee + 3% payment processing).

Is it free to sell on Etsy?

Opening an Etsy shop is free, but selling costs money. Listing items costs $0.20 each. You only pay transaction fees (6.5%) and payment processing (3% + $0.25) when you make a sale. If you make over $10,000 per year, Offsite Ads (12%) become mandatory on certain sales.

How much does Etsy take per sale?

Etsy takes approximately 10-12% of each sale before Offsite Ads. This includes a 6.5% transaction fee on the total sale price (item + shipping) plus 3% + $0.25 for payment processing. If your sale comes from Etsy's external advertising, add another 12-15% for Offsite Ads.

What percentage does Etsy take?

Etsy takes 6.5% of the total sale price (item + shipping) as a transaction fee, plus 3% + $0.25 for payment processing. Combined, that's roughly 9.5-10% depending on your average order value. Offsite Ads add an additional 12-15% on applicable sales.

How much should I budget to start on Etsy?

You can start with $10-20 for your first 50-100 listings. A realistic budget is $50-100 if you include basic packaging supplies and shipping materials.

Are there monthly fees on Etsy?

No required monthly fees. Etsy Plus ($10/month) is optional. You only pay per-listing fees ($0.20) and per-sale fees (6.5% + 3% + $0.25) as you go.

What's the cheapest way to start on Etsy?

List digital downloads. No physical product costs, no shipping, no packaging. You pay $0.20 per listing and 9.5-10% when someone buys. Everything else is profit.

How do Etsy fees compare to Shopify fees?

Etsy charges 10-12% per sale plus $0.20 per listing. Shopify charges $29-79/month for hosting with 2.4-2.9% + 30¢ payment processing (no listing or transaction fees). Etsy is cheaper for low-volume sellers. Shopify becomes more cost-effective above $2,000-3,000/month in sales.

How do Etsy fees compare to eBay or Amazon?

Etsy charges about 10% total (6.5% transaction + 3% payment processing). eBay charges 12-15% depending on category. Amazon handmade charges 15% referral fees plus $0.99 per item sold. Etsy is typically cheaper for handmade and vintage items.

Next Steps

Now you know what Etsy costs. Here's what to do next:

Calculate your exact fees: Use our Etsy fee calculator to see what you'll pay based on your actual product prices, or follow our step-by-step fee calculator guide for worked examples at every price point.

Figure out if you'll be profitable: Our Etsy profit calculator factors in product costs, shipping, and fees to show your real margin.

Optimize your listings from day one: Use our Etsy Title Generator to create SEO-optimized titles, or try the full AI Listing Generator for titles, tags, and descriptions together.

Learn how to start selling: Read our complete Etsy selling guide for step-by-step instructions on opening your shop and listing your first product.

Understand all the fees: Get the full breakdown in our Etsy fees explained guide, including seller protection, currency conversion, and advertising costs.

Etsy isn't expensive to start. The fees are predictable, the upfront costs are low, and you can launch a shop for under $50. The real question isn't what Etsy costs—it's whether you can price your products to make a profit after fees.

Run the numbers before you list. Know your costs, build in margin, and price accordingly. That's how you actually make money on Etsy.