How Etsy fees work for UK sellers

Etsy Payments for a UK shop is a list of small lines that add up. Listing fee (GBP equivalent of the published fixed listing price, currently modelled at £0.16 here), 6.5% transaction on the whole order, payment processing (4% + £0.20), and a regulatory operating fee (0.32% in the UK preset). Offsite Ads, if they attributed the click, add 12% or 15%.

Transaction fee is calculated on item + shipping you charged + gift wrap. Raising postage to make the item look cheaper still pays 6.5% on that postage.

A £32 print with £3 postage charged: gross £35. Transaction £2.28, processing about £1.60, regulatory about £0.11, listing £0.16, before any ads. Payout is the remainder, then you still pay the carrier and the mailer.

Put the same sale through the Etsy fee calculator with the UK preset. Change shipping charged to see the 6.5% move. Then price the pack as Large Letter versus Small Parcel; postage often dwarfs the listing fee.

Etsy’s own fees can include VAT depending on your account. This site’s calculator does not file VAT. If you need to split a fee invoice, use the UK VAT calculator on the fee line, then confirm on Etsy’s bill.