UK Etsy Selling Fees Explained (Short Answer)

Etsy has around 7.3 million active sellers on the platform, recent statistics show that 88% of these sellers handle their business alone.

When you’re going it alone to grow your business on a huge shopping platform like this, you need to have a firm grasp on your accounting.

One such element to be aware of is the Etsy selling fees in the UK. But what are the costs attached to becoming a seller? Do they fluctuate? And how can you manage them with Link My Books?

Short Answer - How Much Does it Cost to Sell on Etsy UK? 

Etsy selling charges in the UK are 6.5% per transaction. There’s also a 16p listing fee and a 4% plus 20p processing fee per transaction. However, setting up your Etsy shop is free.

But there’s more to understand when it comes to selling on Etsy in the UK than that. In this blog, we’ll dive deeper into those fees and discover more about what your margins look like.

How Much Are Etsy UK Fees?

Just like when selling on eBay or Shopify, there are fees attached to growing your sales business on Etsy. There's a lot to understand, from getting your head around the processing fees to calculating VAT.

So, how much does it cost to sell on Etsy? And what are the broken-down fees?

Etsy Listing Fee

Etsy charges a 16p listing fee for every item in your shop, whether they sell or not. Your listings remain active for four months or until they have sold.

If you have multiple quantities of an item, Etsy will automatically renew your listing at the end of the four months. But you will incur that 16p charge every time the listing is renewed.

Alternatively, you could opt to make your listing private and only pay this fee when your product sells. Or avoid it completely by creating a Pattern site on Etsy. However, after your initial Pattern 30-day free trial, you will be required to pay a monthly $15.00 USD subscription.

Etsy Transaction Fees

When you make a sale through Etsy, you will be charged 6.5% of the total sale price, including shipping. This fee also takes into account any gift-wrapping services and taxes.

Etsy Payment Processing Fee

The Etsy processing fee in the UK is applied when a customer purchases through Etsy Payments. These fees are 4% + 20p per transaction.

Etsy Payments is the purchasing platform within the app. It allows customers to checkout securely using various methods, from credit cards to gift cards to Apple or Google Pay and vouchers.

There are also fees to be paid when dealing outside of the highlighted currency on your account.

Currency Conversion Fee

If you are listing items in currencies that do not match the standard currency of your account, then Etsy takes a 2.5% conversion fee.

Postage Label Fees

When preparing your goods for shipping, you can purchase Etsy Postage Labels if you deliver via Royal Mail or Evri. These labels help expedite your time in the Post Office and give you access to discounted postage rates.

However, the cost of Etsy Postage Labels varies depending on your package's size, weight, and delivery address.

How to Calculate Etsy Fees in the United Kingdom

To calculate your Etsy fees in the UK, you first need to understand the various costs of selling on the platform, as we outlined earlier.

Plus, you also need to define your item’s selling cost and price to source/create. Most sellers leverage Etsy Fee Calculators to complete this task.

However, understanding everything you need to cover in your assessment when using a calculator is important for defining the impact of seller fees on your profits.

Identify Etsy Listing Fees

The Etsy listing fee of 16p means you’ll need to include this in your calculations. The figure applies every time you add an item to your store.

As we mentioned earlier, the listing lasts for four months and will also be applied if you have multiples of an item. Although, you can avoid paying multiple fees by listing privately.

Compute Transaction Fees for Sales

Once you’ve calculated how many items you will be listing and what that could mean to your bottom line, it’s then time to add some sales into that mix. However, with sales comes transaction fees.

The Etsy commission rate is 6.5%, including any gift wrapping and taxes. So, think about compensating for this when setting your pricing. It also pays to include delivery in the price of your item to avoid overcomplicating this fee.

Process Payment Fees as a UK Seller

For every transaction processed through Etsy Payments, Etsy charges 4% + 20p. There are alternative payment options out there, like PayPal or Venmo, for example.

However, when it comes to Etsy Payments vs. PayPal, many sellers tend to tolerate the additional charge associated with the former because it allows you to:

• Take multiple forms of payment.
• Easily keep track of your accounts.
• Offer secure payment to customers.
• Benefit from protection in disputes or fraud cases.

It’s also worth mentioning that all new sellers must have Etsy Payments. Additionally, once you have turned on Etsy Payments, some members have found that you cannot switch them off again.

Estimate Shipping and Packaging Costs

Shipping and packaging costs can vary depending on your parcel’s dimensions, weight, and destination. Plus, Etsy does charge for postage label printing.

So, while you want to ensure that your products make it to your customers as safely and quickly as possible, it pays to understand the most cost-effective packaging options for you.

Factor in Additional Charges and Taxes

Other factors to be aware of when calculating your Etsy seller charges are:

• On-site advertising fees: You can choose to promote your products using Etsy Ads. These appear in the Etsy search results, and costs can vary depending on the size of your budget and ad performance. But you only pay when someone makes a purchase.
• Off-site advertising fees: These occur when someone clicks on your off-site advert and makes a purchase within 30 days. Fees attached to these ads are 15% of the order if you made less than $10,000 in the last 12 months and 12% if you made more than $10,000. 
• Currency conversion fees: Etsy charges 2.5% per conversion when you list items in another currency to that of your standard setup.
• Regulatory operating fees: Depending on your location, operating fees will be charged on your items, plus postage costs and gift wrapping. The fees and locations are:

              United Kingdom: 0.32%

               France: 0.47%

               Italy: 0.32%

               Spain: 0.40%

               Turkey: 1.1%

• Etsy Plus subscription: You can upgrade to Etsy Plus for a monthly fee of $10. Upgrading to Etsy Plus entitles you to a range of benefits, like listing and ad credits, as well as restocking requests.
• Pattern fee: Meanwhile, an Etsy Pattern subscription is a viable option if you’re looking to expand your brand onto another platform without losing your Etsy market.
• In-person sales: If you sell your products in person from your bricks and mortar store, you can use Square and pay a fee of $0.20 per listing.

How to View Seller Fees on Etsy in 5 Steps

All of these fees and considerations might seem slightly overwhelming. But luckily, there are simple ways to keep track of your seller fees in your payment account. Here’s a quick video that lays out all the steps (as an alternative to the text below).

1. Access Your Etsy Account

Start by signing in to your Etsy account and clicking on Shop Manager - alternatively, you could choose “More” on the Etsy app.

2. Navigate to the Finance Section

At this point, you should see an option for “Finances” and then select “Payment Account.”

3. Review Detailed Transaction Records

In the Payment Account area, you should be able to see detailed records of your shop’s finances. The display will show your recent activity with up to 30 rows of transactions.

Also, within this section, you should be able to view a compartmentalised view of your sales, fees and tax, and net total, giving you your overall balance in the final column.

Because this is a live view of your shop’s financials, your “Current Balance” will fluctuate with every sale.

4. Analyze Monthly Statements

If you want a more in-depth view of your recent transactions or to review your monthly performance, click on your monthly statement at the bottom of the page.

Here, you’ll also have the option to download a CSV file of your monthly statement for your accounts.

5. Monitor Ongoing Fees and Adjustments

In your Payment Account, you can also keep track of your fees owed in the “Amount Due” area. This will show in the top-left corner of the page.

Alongside that area, you will also see ”Pay Now” or “Enroll in auto-billing” options. These options allow you to pay the account balance manually or have Etsy complete this automatically by taking any payments due from your registered card on the first of the month.

How to Reduce Etsy Fees as a UK Seller

If you don’t fancy giving up such big chunks of your profits, there are some ways you can reduce your Etsy fees.

Here’s what you can do:

1. Bundle Products

Those listing fees mean you get charged every time you list a new item. So, bundle similar products together to cut down on your number of listings. 

2. Renew Listings Strategically

You can also reduce costly listing fees by simply renewing old or sold-out items rather than creating new ones for restocking.

3. Use Etsy Payments

Lower your processing fees by signing up for Etsy Payments and avoiding fees attached to processing payments through PayPal.

4. Price Items to Cover Fees

Be strategic with your pricing by accounting for transaction and payment processing fees. Veteran Etsy seller Kate Hayes suggests a two-phase pricing strategy for this.

5. Utilize Etsy’s Shipping Discounts

Using promo codes or other incentives can help reduce shipping costs through specific carriers in the UK.

6. Offer Discounts for Multiple-item Purchases

Encourage larger orders and more profits by offering rewards for bigger purchases.

7. Keep Detailed Records

Use that Payment Account area and monthly reviews to keep abreast of expenses and fees for tax deductions.

8. Leverage Etsy’s Offsite Ads Wisely

They are brilliant for growing your brand, but off-site ads can also be expensive.

9. Focus on High-margin Products

Ensure you feel those fees less by upgrading your stock to higher-priced items and maximising profit.

10. Consider Etsy's Subscription Service

Etsy Plus and Pattern call for a monthly subscription fee, but the additional tools, time savings, and discounts align with your business scale to create a worthwhile investment.

Frequently Asked Questions

Here are some frequently asked questions about Etsy selling fees in the UK.

How Much Does Etsy Take From a £20 Sale?

Etsy takes roughly 15% from a sale. For example, Etsy fee calculators show that from a £20 sale, assuming your shipping, tax, and material costs are around £10, Etsy would take roughly £2.98. Leaving you with a profit of £17.02.

Do You Need to Pay Tax Selling on Etsy in the UK?

Yes, if you are self-employed and selling on Etsy is your main source of income, then you will need to pay tax in the UK. However, if your Etsy is more of a side hustle, you can earn up to £12,570 tax-free. But it does depend on how much you earn.

Why Are Etsy Fees So High?

Etsy fees can be an annoyance for many sellers. But they are there to help pay for all the benefits of hosting on the platform, like increased marketing and buyer protection.

That said, Etsy is still the most affordable platform to host your products online.

Conclusion

Those Etsy fees can sound confusing. But you can eliminate all that hassle by enlisting an Etsy bookkeeping tool that seamlessly integrates your Etsy and Quickbooks or Xero accounts.

Our simple Etsy accounting software spells everything out so you know what’s coming in and going out every month.

That means more time selling your awesome products and less time scratching your head over your accounts. Sign up for a free trial today and see how stress-free your life could be.