How to Price Etsy Products So You Still Profit After Fees

Last verified 2026-10-23 · Pricing · Published with AI assistance, sourced from official pages (how we work)

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Most pricing advice says "cost times two". That ignores fees that scale with the price. A better way is to price backwards: start with what you want to keep and add every cost, including Etsy's.

The formula

Let T be the order total (item price plus the shipping you charge). Etsy's percentage fees apply to T, so:

T = (your costs + flat fees + listing fee + target profit) ÷ (1 − 6.5% − processing % − Offsite Ads %)

• Your costs = materials/production cost + the shipping you pay.
• Flat fees = the flat part of the processing fee (for example ₪2 in Israel, US$0.25 in the US).
• Listing fee = US$0.20 converted to your currency.
• The Offsite Ads % is 0 if the sale doesn't come from an ad, 15% (or 12% over US$10,000 a year) if it does. We apply it to T as an approximation.

Then item price = T − shipping you charge. The calculator does this for you.

Example 1: handmade item, seller in Israel

Costs: ₪30 to make, ₪18 to ship. Flat processing fee ₪2, listing fee about ₪0.75 (check the current rate). Target profit ₪20. Processing 4.5%.

• Fixed amounts = 30 + 18 + 2 + 0.75 + 20 = ₪70.75
• No Offsite Ad: denominator = 1 − 0.065 − 0.045 = 0.89, so T = 70.75 ÷ 0.89 ≈ ₪79.49
• With a 15% Offsite Ad: denominator = 0.74, so T = 70.75 ÷ 0.74 ≈ ₪95.61

If you charge ₪20 shipping separately, the item price would be about ₪59.49 (no ad) or ₪75.61 (ad). The same shirt sold through an ad needs an order total about 20% higher to give you the same profit. That gap is why many sellers choose to build part of the Offsite Ads cost into their price.

Example 2: print-on-demand tee, US bank account

Printify's pricing page uses a tee with an $8.77 fulfilment cost sold at $19.99 as its example, and notes the figure excludes shipping, taxes and storefront fees. Add Etsy's fees for a US seller with free shipping to the buyer and no sales tax:

• Transaction fee: 6.5% × 19.99 = $1.30
• Payment processing: 3% × 19.99 + 0.25 = $0.85
• Listing fee: $0.20
• Profit: 19.99 − 8.77 − 1.30 − 0.85 − 0.20 ≈ $8.87, before any shipping charged by the supplier.
• If the order came from a 15% Offsite Ad (about $3.00), profit drops to about $5.87.

Supplier shipping costs are extra, and a paid supplier plan lowers the fulfilment cost: see Printify vs Printful.

Pricing mistakes to avoid

• Forgetting that shipping is part of the fee base. The 6.5% and processing fees apply to the shipping you charge too.
• Ignoring the flat fee on cheap items. A flat fee of ₪2 or $0.25 matters a lot on a ₪20 item.
• Pricing to the best case. Price for the Offsite Ads case if your margin cannot survive it, or opt out if you are allowed (rules here).
• Forgetting tax. Income tax and VAT or sales tax are separate. If you are in Israel, see the Israel guide.
• Never revisiting. Fees and supplier prices change; re-run the numbers every few months.

All figures are illustrations to show the method. Use your own costs and current fees.