Every fee Etsy charges UK sellers, including VAT on fees, so you can see what you really keep.
Listing fee: $0.20 per item (about 15p), charged when you list and again each time a listing renews after a sale. Transaction fee: 6.5% of the item price plus postage and gift wrap. Payment processing: 4% + £0.20 per order on the total the buyer pays. Regulatory operating fee: 0.48% of the item price plus postage, up from 0.32% on 22 June 2026.
Etsy quotes its fees excluding VAT. If you're not VAT-registered, which covers most small UK sellers, Etsy adds 20% VAT on top, so the 6.5% transaction fee really costs you 7.8%. VAT-registered sellers who give Etsy their VAT number aren't charged VAT on fees, but must account for VAT on their own sales.
If a buyer clicks one of Etsy's ads on Google, Facebook or elsewhere and buys within 30 days, you pay 15% of the order, or 12% if your shop has made over $10,000 in the past year. The fee is capped at $100 per order. Shops under $10,000 can opt out in their settings, and on cheap items that's often worth doing.
The 15p listing fee and 20p processing fee are fixed, so on a £5 item they take 7% before any percentage fees. Bundling items or raising prices slightly usually helps more than cutting costs.
Etsy Ads (on-site, pay per click), Etsy Plus, postage labels bought through Etsy, the one-off shop set-up fee and Share & Save rebates. Check your Etsy payment account for the exact figures.