TPHubs / Blog

Selling on Etsy: what the fees really add up to, and the risk of losing your shop

October 27, 2026 · 6 min read · TPHubs

Etsy is a great place to get your first orders: the buyers are already there and you only need to list. But as a shop grows, many sellers realize they are paying a sizeable cut of every order, and the whole business depends on one account that can be suspended at any time. Here are the main fees and risks, with official sources, so you can judge for yourself.

1. The fees on one Etsy order

From Etsy's Fees & Payments Policy at the time of writing:

Example: a $30 item plus $5 shipping to a US buyer. Transaction fee about $2.28, processing about $1.30, listing $0.20. Total about $3.78, close to 11%. If that order came through Offsite Ads, add 15% ($5.25) and you are at about $9, more than 25% of the order.

Offsite Ads can be switched off while your shop is under $10,000 in sales over 12 months. Once you pass that, participation is mandatory. Etsy also raised its transaction fee from 5% to 6.5% in 2022. Marketplace fees are not fixed, and you have no say in them.

2. Payment reserves

Etsy can hold back part of the money from each physical-item sale for a period, called a payment account reserve. Etsy lists triggers such as a first sale or a sudden spike in orders or refunds. For most sellers the reserve is removed within 90 days, though it can be extended. So right when your shop takes off, your cash flow gets squeezed while you still pay for stock and printing.

3. Suspension risk

• Copyright and trademark reports: Etsy removes listings when it receives a report, and repeated reports can lead to suspension. Print-on-demand and fan-art sellers are most exposed, even when a report is wrong.
• Policy changes: in 2024 Etsy replaced its handmade policy with new “Creativity Standards”, re-classifying what counts as made, designed or sourced by the seller. Listings that no longer fit can be taken down.
• Performance metrics: late shipping, open cases and low reviews hurt your ranking and can put your account under review.
• No warning: many sellers find out when they log in. Appeals take days to weeks, and sales are zero in the meantime.

4. Other downsides

• You don't own the customer. You can't add Etsy buyers to your marketing list without their consent.
• Competitors on your own page. Similar items from other shops, often cheaper, sit right under yours.
• Weak brand recall. Buyers remember “I bought it on Etsy”, rarely your shop name.
• Algorithm dependence. One change to Etsy search can cut your views sharply without you doing anything wrong.

The fix: keep Etsy, add your own store

You don't need to leave Etsy. It is still a good way to find new buyers. What you need is a store in your own name (for example on Shopify) running alongside it:

• If your Etsy shop is suspended, you can still take orders the same day.
• Buyers from social media, ads and Google pay you directly, with no 6.5% fee and no Offsite Ads.
• You build your own email list and sell to past customers without marketplace fees.
• Your products, photos and descriptions live somewhere you control.

One caution: don't message Etsy buyers inviting them to buy on your site to avoid fees. That breaks Etsy's rules. Bring new customers to your site through your own channels. See how to grow your own store without breaking marketplace rules.

TPHubs sets up backup Shopify stores for Etsy sellers: we move your products, write your policy pages, configure payments and international shipping, and hand over every account in your name. Shopify Launch starts at $199. See pricing or read why marketplace sellers need a backup store.