Quick answer
Inventory/ad prepayments/payout cycles make profit and cash diverge. Etsy fees include listing, transaction, payment processing and optional offsite ads.
Why it matters
Positive profit can still run out of cash due to inventory.
Transaction fee is typically 6.5%.
Step by step
- Confirm price/shipping/materials/labor/packaging.
- Subtract listing/transaction/payment/offsite ads.
- Calculate net profit/margin before free shipping/discounts.
- Spot-check real orders; don't treat Etsy revenue as profit.
- Keep fee/refund/ad records for tax filing.
Common mistakes
- Treating Etsy revenue as profit.
- Omitting offsite ads/payment fixed fee/packaging.
- Free shipping not baked into price.
- Increasing ads while losing money.
Checklist
- Price/shipping/materials/labor/packaging confirmed.
- Listing/transaction/payment/ad fees deducted.
- Net profit/margin positive.
- Real-order spot check.
- Fee/refund/tax records kept.
Key facts
- Transaction fee is typically 6.5%.
- Payment fees vary by country.
FAQ
Why is cash tight when Etsy fees is positive?
Inventory/ad prepayments/payout cycles make profit and cash diverge. Etsy fees include listing, transaction, payment processing and optional offsite ads.
How long does it take?
Usually 1-3 minutes; for intermittent issues, run 30 seconds and retest elsewhere.
Is data uploaded?
Runs locally and does not upload video/audio; extensions may still read the page.
Source: Etsy fees