The Ultimate Guide to Etsy Fees: What Sellers in India Need to Know
- CA Bhavesh Jhalawadia
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For many new sellers, understanding the financial side of Etsy can be the most confusing part of the onboarding process. With new updates and reactivated onboarding for Indian sellers, it is vital to know exactly what you are paying for.
In this guide, we break down every fee, tax, and charge associated with selling on Etsy, so you can price your products correctly and protect your profit margins.
1. One-Time Setup Fee
Before you can list your first product, there is a mandatory barrier to entry. This is a one-time investment required to open your shop.
- Cost: $10 USD.
- In INR: Approximately ₹853.
- Why it exists: This is a verification and onboarding fee. If you want to sell on Etsy, this $10 charge is unavoidable. However, considering this is the only startup capital required, it is a relatively low barrier to entry.
2. Listing Fees
Think of this as “rent” for the space your product occupies on the Etsy marketplace.
- Cost: $0.20 (20 Cents) per listing.
- In INR: Approximately ₹17 + Tax $\approx$ ₹20 per listing.
- Validity: This fee covers your listing for 4 months.
- Renewal:
- If the item sells, the listing “expires,” and you must pay the $0.20 fee again to renew it.
- If the item does not sell, the listing expires after 4 months. You must pay $0.20 to renew it for another 4-month cycle.
3. Transaction Fees
This is the commission Etsy takes for facilitating the sale.
- Rate: 6.5% of the total listing price.
- Scope: This applies to every product you sell, regardless of whether the item costs $5, $50, or $500.
4. Etsy Payments Processing Fee (India Specific)
This fee is charged for handling the transfer of funds from the buyer to your bank account via Etsy Payments.
- Rate: 5% + ₹25 INR per transaction.
- Breakdown: You pay 5% of the total sale price, plus a fixed flat fee of ₹25. While the percentage is standard, the additional ₹25 fixed fee is specific to the payment structure for Indian sellers.
5. Offsite Ads Fees (Conditional)
Etsy advertises listings on external platforms like Google, Pinterest, news sites, and blogs. You only pay this fee if a buyer clicks on one of these external ads and purchases your product. If the ad runs but no one buys, you pay nothing.
The fee percentage depends on your shop’s revenue over the last 365 days:
- Scenario A (New/Smaller Shops):
- If you have made less than $10,000 USD in sales in the past 365 days.
- Fee: 15% on the order value (only for sales attributed to ads).
- Scenario B (High Volume Shops):
- If you have made more than $10,000 USD in sales in the past 365 days.
- Fee: 12% on the order value.
- Note: Etsy offers a discount (12% vs 15%) to higher-volume sellers.
Summary of Etsy Charges
| Fee Type | Cost / Rate | Frequency | Notes |
| Shop Setup Fee | $10 USD (approx. ₹853) | One-time | Mandatory for account creation. |
| Listing Fee | $0.20 USD (approx. ₹20) | Per Listing | Valid for 4 months or until the item sells. |
| Transaction Fee | 6.5% | Per Sale | Calculated on the listing price. |
| Payment Processing | 5% + ₹25 INR | Per Sale | Specific to Etsy Payments in India. |
| Offsite Ads | 15% (if sales <$10k) 12% (if sales >$10k) | Per Ad Sale | Only charged if a sale comes via an external ad. |
Real-World Calculation Example
To understand how this impacts your bottom line, let’s look at a hypothetical example of selling a product from India.
The Scenario:
You sell a piece of wall art.
- Selling Price: $50 USD (approx. ₹4,200 INR for calculation purposes).
- Assumption: You have made less than $10k in sales this year, and this sale did not come from an offsite ad.
The Breakdown:
- Listing Fee:
- You pay ₹20 ($0.20) just to put it up.
- Transaction Fee (6.5%):
- $50 $\times$ 6.5% = $3.25 (approx. ₹273).
- Payment Processing Fee (5% + ₹25):
- Percentage: $50 $\times$ 5% = $2.50 (approx. ₹210).
- Fixed Fee: ₹25.
- Total Processing: ₹210 + ₹25 = ₹235.
Total Fees Deducted (Approximate):
- ₹20 (Listing) + ₹273 (Transaction) + ₹235 (Processing) = ₹528
- Note: If this sale came from an Offsite Ad, you would deduct an additional 15% ($7.50 / ₹630).
Conclusion
When you combine the Transaction Fee (6.5%) and the Payment Processing Fee (5% + Fixed), along with the listing costs, the average cost of selling on Etsy for an Indian seller usually lands between 12% and 13% of your total revenue per sale (excluding Offsite Ads).
While the fees may seem complex initially, understanding this 12-13% average helps you price your products effectively to ensure you remain profitable.