You just made a sale on Etsy! $25 for a handmade candle. But how much did you actually make?
The Hidden Fees
Most Etsy sellers do not realize how much the platform takes:
| Fee | Amount |
|---|---|
| Listing fee | $0.20 |
| Transaction fee (6.5%) | $1.63 |
| Payment processing (3% + $0.25) | $1.00 |
| Total platform fees | $2.83 |
And that is before:
- Materials cost ($8)
- Shipping supplies ($3)
- Your time
- Offsite ads (15% if applicable)
Your "profit" from that $25 sale? Maybe $6. That is $6 per hour if it took you an hour to make.
The 40% Rule
Healthy Etsy businesses target 40%+ profit margins after ALL costs. If your margin is below 20%, you need to:
- Raise prices
- Cut costs
- Stop selling that item
Free Tool: Know Your Real Numbers
I built a free calculator that shows the full breakdown:
Enter your price and costs. See exactly what Etsy takes. Know your real profit margin.
Other Free SellerMind Tools
- Tag Generator - Get optimized 13-tag sets
- Title Generator - AI-powered title suggestions
All free. No signup. Built for sellers who want to treat their shop like a real business.
Etsy sellers: what is your average profit margin? Be honest in the comments.
Full disclosure: I'm the developer of SellerMind. I built this tool because I needed it myself.
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