Etsy Fees Explained: What Etsy Really Charges UK Sellers in 2026
16 March 2026 · Huskai · 6 min read
Etsy Fees Explained: What Etsy Really Charges UK Sellers in 2026
If you sell on Etsy from the UK, you've probably noticed that the amount deposited into your bank account is a fair bit less than what your customer paid. That's because Etsy doesn't just charge one fee — it charges several, layered on top of each other.
This guide breaks down every fee Etsy charges UK sellers in 2026, with a worked example so you can see exactly where your money goes.
1. Listing Fee — ~£0.16 per listing
Every time you list an item on Etsy, you're charged $0.20 USD (approximately £0.16, depending on the exchange rate at the time). This fee applies whether or not the item sells.
- The listing lasts 4 months. If it doesn't sell, you can choose to auto-renew it — and you'll be charged another $0.20.
- When an item does sell, the listing is also renewed automatically (and charged again) so it stays in your shop.
- If you sell a multi-quantity listing, you're charged the listing fee again for each sale.
It sounds small, but if you have 200 listings renewing every 4 months, that's roughly £128 a year just in listing fees — before you've sold a thing.
2. Transaction Fee — 6.5%
When an item sells, Etsy takes a 6.5% transaction fee on the total order amount. This includes:
- The item price
- The shipping cost
- Gift wrapping charges (if applicable)
This is one of the fees that catches sellers off guard. Etsy charges 6.5% on shipping too, not just the product price. If you offer "free shipping" by building the cost into your item price, you'll pay a higher transaction fee on the inflated price either way.
3. Payment Processing Fee — 4% + 20p
Etsy requires all UK sellers to use Etsy Payments (you can't use your own payment provider). For UK sellers, the payment processing fee is:
4% + £0.20 per transaction
This is calculated on the total amount the buyer pays, including the item price, shipping, and any applicable taxes. It's comparable to — though slightly higher than — what you'd pay using Stripe directly (1.5% + 20p for UK cards).
4. Regulatory Operating Fee — 0.32%
Since 2022, Etsy has charged UK sellers a Regulatory Operating Fee of 0.32% on the total order amount (item price plus shipping). Etsy says this covers "increased costs of operating in regulated markets." It's small, but it's another slice off your margin.
5. Offsite Ads Fee — 15% (or 12%)
This is the fee that generates the most frustration. Etsy runs advertising on Google, Facebook, Instagram, and Pinterest to drive traffic to listings. If a buyer clicks one of these ads and purchases from your shop within 30 days, you pay an Offsite Ads fee.
- 15% of the total order amount if your shop revenue is under $10,000 USD in the trailing 12 months
- 12% if your revenue is $10,000 USD or above
Can you opt out?
If your trailing 12-month revenue is under $10,000 USD (roughly £8,000, depending on exchange rates), you can opt out in your shop settings. Once you cross that threshold, Offsite Ads become mandatory — and they stay mandatory for the lifetime of your shop, even if your revenue drops back below the threshold.
You don't get to choose which listings are advertised, and you have no control over the ad spend. You only pay when a sale is attributed to an ad click, but at 15% on top of all the other fees, it can take a serious bite out of your profit.
6. Etsy Ads (Optional, Separate from Offsite Ads)
Don't confuse Offsite Ads with Etsy Ads. These are two different things:
- Etsy Ads promote your listings within Etsy's own search results and pages. You set a daily budget (minimum £1/day) and pay per click.
- Offsite Ads promote your listings on external platforms (Google, social media). You pay a percentage of the sale, not per click.
Etsy Ads are entirely optional. Whether they're worth it depends on your margins and your niche — but they're a cost-per-click model, so at least you control the spend.
7. Currency Conversion Fee — 2.5%
If a buyer pays in a currency other than GBP, or if you list items in a different currency, Etsy charges a 2.5% currency conversion fee on the converted amount. This applies to international sales where a currency exchange is needed.
If you sell primarily to UK buyers paying in pounds, you won't encounter this fee. But if you get regular orders from the US or Europe, it adds up.
8. VAT on Etsy's Fees
One more thing: if you're not VAT-registered, Etsy charges 20% VAT on top of all its fees. So that 6.5% transaction fee effectively becomes 7.8%, the payment processing fee increases too, and so on.
If you are VAT-registered and have entered your VAT number in your Etsy settings, Etsy won't charge VAT on its fees (you'll account for it on your VAT return instead). This is a good reason to register for VAT once your turnover approaches the threshold.
Worked Example: A £25 Product with £3.50 Shipping
Let's say you sell a handmade candle for £25.00 with £3.50 shipping. Here's what Etsy takes, fee by fee:
| Fee | Calculation | Amount |
|---|---|---|
| Listing fee | ~£0.16 (fixed, $0.20 USD converted) | £0.16 |
| Transaction fee (6.5%) | 6.5% × £28.50 | £1.85 |
| Payment processing (4% + 20p) | (4% × £28.50) + £0.20 | £1.34 |
| Regulatory operating fee (0.32%) | 0.32% × £28.50 | £0.09 |
| Total fees (without Offsite Ads) | £3.44 | |
| Offsite Ads fee (if triggered, 15%) | 15% × £28.50 | £4.28 |
| Total fees (with Offsite Ads) | £7.72 |
Without Offsite Ads: You receive £25.06 out of £28.50 — Etsy keeps £3.44.
With Offsite Ads: You receive £20.78 out of £28.50 — Etsy keeps £7.72.
And remember, if you're not VAT-registered, add 20% on top of those fee amounts.
What Percentage Does Etsy Actually Take?
Using our worked example above (£25 item + £3.50 shipping = £28.50 total):
- Without Offsite Ads: £3.44 ÷ £28.50 = 12.1% of the total sale
- With Offsite Ads: £7.72 ÷ £28.50 = 27.1% of the total sale
If you look at it from the perspective of just the product price (ignoring shipping you're passing on to the buyer):
- Without Offsite Ads: £3.44 ÷ £25.00 = 13.8% of the item price
- With Offsite Ads: £7.72 ÷ £25.00 = 30.9% of the item price
Most UK sellers will find that Etsy takes somewhere between 12% and 15% of each sale in normal circumstances. If Offsite Ads kick in, that can jump above 27%.
When Does Your Own Shop Become Cheaper?
Let's compare Etsy's fees against running your own shop on Haul, where you pay a flat £15/month with zero transaction fees — the only variable cost is Stripe's card processing at 1.5% + 20p per transaction.
Using the same £25 + £3.50 shipping example:
| Etsy | Haul | |
|---|---|---|
| Transaction fees | £3.44 | £0.00 |
| Payment processing | (included above) | £0.63 (1.5% × £28.50 + 20p) |
| Per-sale cost | £3.44 | £0.63 |
| Saving per sale on Haul | £2.81 | |
At £2.81 saved per sale, you'd break even on Haul's £15/month subscription after just 6 sales per month. Every sale after that is pure savings.
If you're making 30 sales a month at a similar price point, that's roughly £84/month more in your pocket — or over £1,000 a year.
Etsy does offer real value: it brings buyers to your listings through its marketplace and search traffic. If you're just starting out and have no audience, that discovery is genuinely worth paying for. But once you've built a following and have repeat customers, you're paying marketplace fees for traffic you're generating yourself.
Try the Calculator
Want to see exactly what Etsy is costing you based on your own prices and sales volume? Use our free Etsy Fee Calculator to get a personalised breakdown.
How Haul Compares to Etsy
For a full side-by-side comparison — covering fees, features, branding, and control — read our detailed Haul vs Etsy comparison.