Etsy Shipping Calculator
Etsy takes a 6.5% transaction fee on the shipping you charge too. See the real cost.
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$1.63
Out of $6.50 buyer-paid shipping
Etsy charges its 6.5% transaction fee on buyer-paid shipping as well as the item price. If you offer free shipping, you are covering this cost yourself — factor it into pricing.
Etsy charges a fee on shipping too
The most overlooked Etsy fee is the one on shipping. Etsy's 6.5% transaction fee applies to the total the buyer pays, and that total includes shipping and gift wrap. Charge $6.50 for shipping and Etsy takes $0.42 of it before you see the rest. Over a year of sales, that quiet fee can silently shave hundreds of dollars off your profit.
If you charge exactly what shipping costs you, you are losing money on every shipment — the Etsy fee on shipping plus the payment processing fee come straight out of your pocket. The common workaround is to build a small shipping handling margin into the price you charge buyers, or fold the shipping fee into your item price.
Should you offer free shipping?
Free shipping boosts conversion because Etsy shoppers filter for it, but it means you absorb the shipping cost and its fee. Only offer it if your item price already covers your shipping cost plus the fee. Use this calculator to find the break-even point, then check the Etsy Pricing Calculator to see what your item price must be to stay profitable with free shipping included.
Frequently asked questions
Does Etsy take a percentage of shipping?
Yes. Etsy charges its 6.5% transaction fee on buyer-paid shipping, plus the payment processing fee applies to the shipping portion of the order too.
How much does Etsy charge for shipping fees?
For a $6.50 shipping charge, Etsy keeps roughly $0.42 in transaction fee plus its share of payment processing — about 10% of the shipping amount in total.
Should I offer free shipping on Etsy?
Free shipping improves conversion but you absorb the cost and its fee. Only use it if your item price already covers your real shipping cost plus the Etsy fee on shipping.
Can I charge more for shipping to cover the fee?
Yes. Add a small handling margin to your buyer-paid shipping so the Etsy fee comes out of it rather than your product profit. Just avoid overcharging — it hurts conversion.