Episode Details

Choose Your Own Etsy Adventure Here

How Much Does It Cost to Start on Etsy?

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)