If you are selling on Etsy in the UK, understanding the full fee structure is essential before setting your prices. Etsy charges listing fees, transaction fees, payment processing fees, regulatory operating fees, and VAT on seller services.
When combined, these costs can significantly affect your profit margin. This guide explains exactly how much Etsy charges UK sellers in 2026, how each fee is calculated, and how to estimate your real take home profit per sale.
Want to estimate your actual profit after fees? Use our Etsy Fee Calculator UK to calculate your net earnings per sale.
Etsy’s fees aren’t just small deductions—they can shape how you price products, determine whether a product is profitable, and influence whether scaling makes financial sense.
Many sellers mistakenly think only of listing fees or Etsy’s percentage charge on each sale. In reality, the total cost of selling includes multiple fee layers, potential VAT on fees, and optional costs tied to advertising or currency conversion.
Knowing all of them helps you set prices that protect profit and avoid surprises in your monthly payout.
If you want a broader understanding of how Etsy structures its charges worldwide, read our complete Etsy fees breakdown.
1. Listing Fees
Every time you list an item on Etsy, you pay a listing fee.
Cost: £0.15 per item listed (equivalent to the USD listing fee converted into GBP).
When it’s charged: At the time you publish the listing
Listing duration: Valid for four months or until the item sells
Auto-renew: If you have auto-renew enabled, Etsy will automatically renew the listing after expiry and charge the fee again.
Key points:
You pay this fee even if the item doesn’t sell.
For multi-quantity listings, a listing fee is charged per quantity sold beyond the first.
Listing fees might seem small, but they add up when you have large inventories or high turnover.
Complete Etsy fees breakdown
2. Transaction Fees
Whenever you make a sale, Etsy charges a transaction fee on the total order value.
Rate: 6.5% of the total sale price, including item price, shipping, and any gift wrapping.
Applies to: All sales completed through Etsy
Important nuance: For UK (and other non-US sellers), the fee is based on the total amount displayed, including applicable taxes sellers are responsible for.
This is one of Etsy’s main revenue streams and usually makes up a large portion of fees on each order.
3. Payment Processing Fees (Etsy Payments)
To accept payments through Etsy, you must use Etsy Payments in most countries, including the UK. This fee covers card processing and other payment methods Etsy supports.
Rate for UK sellers: 4% of the order total plus £0.20 per transaction.
Applies to: Every order processed through Etsy Payments
Calculated on: Item price, shipping, and any applicable VAT
Payment processing fees are separate from transaction fees—meaning you pay both on the same order.
If you also sell outside Etsy, our Stripe vs PayPal fee comparison explains how payment processor costs differ.
Example: How Much Does Etsy Take on a £50 Sale in the UK?
If you sell an item for £50 with £5 shipping:
• Transaction fee 6.5% = £3.58
• Payment processing 4% + £0.20 = £2.40
• Regulatory fee approx 0.3% = £0.17
• Listing fee £0.15
Total before VAT on fees ≈ £6.30+
After VAT on Etsy service fees, your real cost is higher.
To understand how to calculate your margins step by step, see our guide on how to calculate Etsy seller profit after fees.
4. Regulatory Operating Fee
Etsy charges an additional small percentage to cover regulatory and compliance costs in select regions, including the UK.
UK Regulatory Operating Fee: ~0.25–0.32% of the sale price (excluding tax).
Charged on: Item price plus shipping and gift wrap
Applied automatically on each transaction
This isn’t a tax—but a fee Etsy charges to cover increased costs associated with operating in regulated markets.
5. Currency Conversion Fees
If you list items or accept payments in a currency other than the one set in your bank account, Etsy will convert the funds for deposit.
Currency Conversion Fee: ~2.5% on the amount converted.
Applies: When Etsy needs to convert from the listing currency to your payout currency
Impact: This fee effectively reduces your net proceeds after conversion
Even if you list in GBP but your bank account is in a different currency (e.g., EUR or USD), this fee can apply.
6. VAT on Etsy Fees (UK VAT Rules)
In the UK, Etsy fees (like listing fees, transaction fees, and payment processing fees) are subject to VAT.
VAT Rate: 20% (if applicable)
Charged on: Etsy’s service fees, not on the sale price charged to buyers
VAT is shown separately in your fee invoices
If your business is VAT-registered, you can usually reclaim this VAT via your VAT returns—just like any other business expense. If you’re not VAT-registered, the VAT increases your effective cost of using Etsy’s services
7. Offsite Ads Fees (Optional but Important)
Etsy offers offsite advertising, where Etsy promotes your products on external platforms (Google, social media, etc.). If you make a sale that resulted from one of these ads within a defined timeframe, Etsy charges an additional referral fee.
Fee rate: ~12–15% of the order total, depending on your total annual sales.
Only charged: When the sale is attributed to an offsite ad
Not applied to all orders
Offsite Ads fees can be one of the largest single deductions on some sales—especially on low-priced items.
8. Other Situational Fees
Other potential charges UK sellers might encounter:
Shop set-up fee: A one-time fee when creating your shop (amount varies by location).
Deposit fees: If you use certain payout methods and don’t meet thresholds, small charges may apply.
Automatic renew fees: Listing renewals automatically incur the listing fee unless you choose manual renewals.
These are situational but worth knowing to avoid unexpected deductions.
Common Fee Mistakes UK Etsy Sellers Make
Mistake 1: Ignoring VAT on Seller Fees
Some sellers forget that Etsy charges VAT on its service fees—and if you aren’t VAT-registered, that VAT stays as a cost.
Mistake 2: Pricing Without Including Shipping & Taxes
Transaction and processing fees are based on the gross amount, including shipping and, in some cases, taxes.
Mistake 3: Auto-Renewing Listings Without Review
Auto-renew keeps listings active but incurs listing fees on items that may not sell soon.
Mistake 4: Ignoring Offsite Ads Impact
Offsite Ads fees can significantly increase effective cost per sale if not factored into pricing.
Mistake 5: Underestimating Currency Conversion Costs
Even UK sellers can incur conversion fees if the payment account is in a different currency.
If you also sell in America, compare your costs with our detailed guide on Etsy Fees USA Explained.
Final Summary
Etsy fees in the UK include more than just a listing charge. UK sellers must understand:
Listing fees (£0.15 per item)
Transaction fees (6.5% of total)
Payment processing (4% + £0.20)
Regulatory operating fees (~0.25–0.32%)
VAT on seller fees
Offsite Ads fees where applicable
Currency conversion fees when relevant
These fees combine with your own business costs—materials, shipping, taxes, and time—to determine how much profit you walk away with per sale. Knowing them inside out helps you price products confidently, avoid surprise deductions, and grow sustainably on Etsy.
Frequently Asked Questions (FAQs)
1. Why does Etsy charge multiple fees?
Etsy charges different fees for listing, selling, processing payments, and advertising because each service has its own cost structure.
2. Do I pay fees if my item doesn’t sell?
Yes—listing fees apply regardless of whether a sale occurs.
3. Is VAT charged on Etsy fees?
Yes, VAT is typically charged on Etsy’s fees and may be reclaimable if you are VAT-registered.
4. How do Offsite Ads fees work?
Offsite Ads fees apply only when a sale is attributed to an Etsy ad (12–15% of sale).
5. Does Etsy charge for payment conversion?
Yes, a currency conversion fee (~2.5%) may apply if conversion is required.
6. Are regulatory fees unique to the UK?
Regulatory operating fees apply in several countries, including the UK, to cover compliance costs.
7. Can I lower my Etsy fee costs?
You can optimise pricing, bundling, and listing strategies, but you cannot remove Etsy’s core fees. Effective planning helps reduce their relative impact.
For the most up to date information, always confirm details on Etsy’s official website, as fee structures may change.