Etsy fees UK, explained
Etsy doesn't take one fee, it takes several. Some are a percentage of the sale, one is a flat amount per order, and if you're not VAT registered there's 20% VAT on top of all of them. Here's each one, with real numbers, so you know exactly where your money goes.
| Fee | Rate | Charged on |
|---|---|---|
| Listing fee | £0.16 | Each listing, and again each time it renews or sells ($0.20) |
| Transaction fee | 6.5% | Item price plus postage |
| Payment processing | 4% + £0.20 | Item price plus postage |
| Regulatory operating fee | 0.48% | Item price plus postage, since 22 June 2026 |
| Offsite Ads | 15% | The whole order, only when a buyer came from Etsy's ads |
| VAT on fees | 20% | Every fee above, unless you're VAT registered |
Listing fee £0.16
Every listing costs $0.20 to publish. Etsy charges it in dollars, so the amount in pounds moves a little with the exchange rate. Right now it's about 16p.
A listing lasts four months or until the item sells. With auto-renew switched on, Etsy charges another $0.20 when it expires, and again each time you sell from a listing with more than one in stock. So in practice you pay it once for every sale, which is how the calculator counts it.
Transaction fee 6.5%
Etsy takes 6.5% of everything the buyer pays for the item, including the postage you charge and any gift wrapping.
That means moving part of your price into postage doesn't get you out of it. A £10 item with £3 postage pays the transaction fee on the full £13.
Payment processing fee 4% + £0.20
This is what it costs to take the buyer's payment through Etsy Payments. For UK shops it's 4% of the order total, postage included, plus a flat 20p per order.
That flat 20p is why cheap items are expensive to sell. Add the 16p listing fee and a £2 item loses 70p to Etsy, about 35% of the sale. On a £30 item, the fees are closer to 15%.
Regulatory operating fee 0.48%
Etsy charges this in some countries to cover the cost of following local rules and laws. For UK sellers it's 0.48% of the order total, postage included. That's the rate from 22 June 2026.
It's small, around 5p on a £10 sale, so a lot of calculators leave it out. It's on your statement, so it's in ours.
VAT on Etsy fees 20%
Etsy charges UK sellers 20% VAT on its fees. If you're not VAT registered, that's simply an extra cost: every fee above is really 20% more than it looks.
On a £20 sale with free postage, the fees come to £2.56 before VAT and £3.07 with it. You'll see the VAT as separate lines in your Etsy payment account.
If you are VAT registered, you can usually claim it back on your VAT return. Set "VAT registered?" to Yes in the calculator and it leaves the VAT out.
Offsite Ads 15%
Etsy advertises listings on sites like Google, Instagram and Pinterest. If a buyer clicks one of those ads and buys from you within 30 days, you pay an Offsite Ads fee on that order. You only pay when an ad leads to a sale.
The fee is 15% of the whole order, postage included, up to $100 per order. Shops that have made more than $10,000 in the last 12 months pay 12% instead, and can't switch Offsite Ads off.
If your shop is under that, you can opt out in your Etsy shop settings. When a sale did come from an ad, set "Sale from Offsite Ads?" to Yes in the calculator to see what it really made you.
Worked examples
A £5.50 greeting card with free postage
A card maker sells a birthday card for £5.50 and offers free postage. Each card costs 80p to make and 85p to post. They're not VAT registered.
| Buyer pays | £5.50 |
|---|---|
| Listing fee | −£0.16 |
| Transaction fee (6.5%) | −£0.36 |
| Payment processing (4% + £0.20) | −£0.42 |
| Regulatory operating fee (0.48%) | −£0.03 |
| VAT on Etsy fees (20%) | −£0.19 |
| Total Etsy fees | −£1.16 |
| Cost to make | −£0.80 |
| Postage you pay | −£0.85 |
| You keep | £2.69 |
Etsy takes £1.16, about 21% of the sale, and the seller keeps £2.69. Priced below £2.40, this card would lose money.
An £18 print with £3.50 postage, sold through Offsite Ads
An artist sells an A4 print for £18 and charges £3.50 postage. The buyer found it through an Etsy ad on Instagram, so the Offsite Ads fee applies.
| Buyer pays | £21.50 |
|---|---|
| Listing fee | −£0.16 |
| Transaction fee (6.5%) | −£1.40 |
| Payment processing (4% + £0.20) | −£1.06 |
| Regulatory operating fee (0.48%) | −£0.10 |
| Offsite Ads fee (15%) | −£3.23 |
| VAT on Etsy fees (20%) | −£1.19 |
| Total Etsy fees | −£7.14 |
| Cost to make | −£4.00 |
| Postage you pay | −£3.20 |
| You keep | £7.16 |
The Offsite Ads fee on its own (£3.23 before VAT) is more than all the other fees put together (£2.72). Without the ad, the same sale would have made £11.04 instead of £7.16.
FAQ
Is this Etsy calculator for UK sellers?
Yes. It's built for shops based in the UK and works in pounds. It uses the UK payment processing fee (4% plus 20p, not the US 3% plus 25 cents), adds the 20% VAT Etsy charges UK sellers on its fees, and includes the 0.48% UK regulatory operating fee. Most Etsy calculators online are American and leave these out.
How much does Etsy take from a sale in the UK?
For most UK sellers, Etsy takes 16p to list the item, a 6.5% transaction fee, 4% plus 20p for payment processing and a 0.48% regulatory operating fee, all worked out on the item price plus postage. If you're not VAT registered, there's 20% VAT on top. On a £10 to £20 sale that usually comes to 15% to 18% of what the buyer pays, and more on cheaper items.
Does Etsy charge fees on postage?
Yes. The transaction fee, payment processing fee and regulatory operating fee are all worked out on the total the buyer pays, including postage, and so is the Offsite Ads fee. A £10 item with £3 postage pays fees on £13, so switching to free postage and adding £3 to the price costs you exactly the same in fees.
Do I pay VAT on Etsy fees?
Yes. Etsy adds 20% VAT to its seller fees for UK shops. If you're not VAT registered you can't claim it back, so it's a real cost on every sale. If you are VAT registered, you can usually reclaim it on your VAT return.
What is the regulatory operating fee?
It's a fee Etsy charges sellers in some countries to cover the cost of complying with local regulations. For UK sellers it's 0.48% of the order total, including postage. It's small, but it's charged on every sale.
Can I turn off Offsite Ads?
Yes, if your shop has made less than $10,000 in sales in the last 12 months. You can opt out in your Etsy shop settings. Once a shop goes over $10,000, Offsite Ads can't be switched off, but the fee drops from 15% to 12%.
How do I work out what price to charge on Etsy?
Start with what each item costs you to make and post. Put those into the calculator above to see your break-even price, the lowest price that covers every fee. Then add the profit you want on top. To price lots of products at once, Price your shop works out the price you need for any target margin.