A 25% discount rarely cuts profit by 25% — it usually cuts it by much more, because your costs don't go on sale.
The true cost of selling on Etsy in 2026
Every fee below comes from one verified data source (last checked 2026-10). Pay attention to the "charged on" column — most fees apply to the whole order, not just your item price.
| Fee | Percentage | Fixed | Charged on |
|---|---|---|---|
| Listing fee | — | $0.20 | Per listing / sale |
| Transaction fee | 6.5% | — | Item + shipping + gift wrap |
| Payment processing | 3% | $0.25 | Order total incl. tax |
| Offsite Ads | 15% / 12% | — | Attributed order total (cap $100) |
| Share & Save rebate | −4% | — | Orders from your links |
Shipping you charge the buyer is part of the fee base on most platforms. That means "cheap shipping, higher item price" and "higher shipping, cheaper item" cost you exactly the same in fees — the only way to lower fees is to lower the order total or move sales to cheaper channels.
Why discounts hit profit so hard
On a $45 item with $18 of costs, profit before fees is $27. A 25% discount removes $11.25 of revenue but none of the costs — profit falls by over 40%.
To break even on a sale, volume has to rise by roughly: original profit ÷ discounted profit. Watch the profit figure as you move the discount slider.
Real-world worked example: breaking down a sale
Using this page's default inputs:
- Item price $45.00 with a 25% discount → $33.75 + shipping charged $5.00 = order total $38.75.
- Listing fee: −$0.20
- Transaction fee 6.5%: −$2.52
- Payment processing: −$1.41
- Total platform fees: −$4.13 (10.7% of the order).
- Your costs (product, shipping, packaging): −$18.00.
- Net cash in pocket: $16.62 — a 42.9% margin. Break-even list price: $20.52.
How to protect your profit margins on Etsy
- Prefer 'buy 2, get 10% off' over blanket discounts — AOV rises with it.
- Never discount below break-even; check the break-even card.
- Count packaging, labels, tape and inserts in your costs — at $0.50–$1.50 per order they're often the forgotten 3% of margin.
- Use reverse mode before you list: decide the profit you want, then price to it, rather than discovering your margin after the sale.
Frequently asked questions
Does Etsy charge fees on customer shipping?
Yes. Transaction and payment processing fees are levied against the entire transaction total, including buyer-paid shipping and any gift wrap options.
What is the minimum selling price to avoid losing money (break-even)?
The break-even threshold is the exact price at which revenue covers product cost, packaging, shipping, ad spend and all platform percentage and flat fees. FeeOrbit computes it live in the results card.
How does the reverse pricing calculator work?
Reverse mode lets you set the net profit you want (for example $20). The engine solves for the list price needed after deducting every percentage and flat fee: price = (profit + costs + flat fees) ÷ (1 − percentage fees) − shipping charged.
Is my financial or product data saved or shared?
No. FeeOrbit runs entirely in your browser. Inputs are only stored in your own browser's local storage so they're there next visit — nothing is sent to a server.
How current are these fee rates?
All fee constants were last verified in 2026-10 against each platform's published fee schedule. Platforms change fees regularly, so always confirm with your seller dashboard.