SuanSupply
The short version
- Opening an Etsy shop takes about ten steps: shop preferences, a name, payment and billing details, ID verification, two-factor authentication and your first listing.
- New shops may pay a one-time, non-refundable set-up fee (US$15 when Etsy introduced it), then US$0.20 per listing. There is no monthly fee unless you choose Etsy Plus.
- Each sale then costs about 9.5% of the order plus $0.45 in a US shop, and 12% to 15% more if it came from an Offsite Ad.
- Before you list, pick a product you can make or source at a healthy margin, price it for fees and ad sales, and research the words buyers search for.
How much does it cost to start an Etsy shop?
Starting an Etsy shop costs a one-time set-up fee (US$15 when Etsy introduced it) plus US$0.20 for each listing, so a new shop with 10 listings pays about US$17 before its first sale. After that you pay fees only when you sell, plus anything optional you choose.
| Cost | Amount | When you pay it |
|---|---|---|
| Shop set-up fee | One-time, non-refundable (US$15 at launch; Etsy may waive it in promotions) | When you open the shop, after adding billing details |
| Listing fee | US$0.20 per item, lasts four months | When you list, when it renews, and when a multi-quantity item sells |
| Transaction fee | 6.5% of item price + shipping + gift wrap | When an item sells |
| Payment processing | 3% + US$0.25 in the US (varies by country) | When an item sells |
| Offsite Ads | 15% or 12% of the order, max US$100 | Only on sales that came from an Etsy ad on another site |
| Etsy Ads | Your daily budget, charged per click | Optional |
| Etsy Plus | US$10 a month | Optional |
From Etsy's Fees & Payments Policy, help center and Seller Handbook, checked September 30, 2026. Etsy's policy says new shops may be required to pay the set-up fee; the amount shown at sign-up is what applies to you.
See exactly what Etsy takes from a sale at your price, in the US, Canada, the UK, Australia, Germany or France.
Open the free Etsy fee calculatorHow do you open an Etsy shop, step by step?
- Go to etsy.com/sell and select Get startedSign in with your Etsy account, or create one. Etsy asks a few questions about your selling experience.
- Set your shop preferencesChoose your shop language, country and currency. List in the same currency as your bank account to avoid the 2.5% currency conversion fee.
- Choose a shop name4 to 20 characters, no spaces or special characters, not already taken and not someone else's trademark. You can change it later.
- Add how you'll get paidConnect a bank account for deposits from Etsy Payments.
- Add billing detailsA credit or debit card for your Etsy fees. This is when the one-time set-up fee is charged.
- Verify your identityUpload a photo ID, such as a driver's license or passport, and take a selfie. Etsy uses a partner company for these checks.
- Turn on two-factor authenticationRequired to protect your shop and payments.
- Create your first listingEtsy needs at least one listing before the shop can open. Add photos, a title, a description, price, quantity, shipping and 13 tags.
- Select Open your shopYour shop goes live on Etsy.
- Finish your storefrontAdd a shop icon, banner, About section and shop policies (returns, shipping and processing times).
Etsy has said it may hold funds for some new shops until they build a sales history. Check the Payment account page in Shop Manager so you know when your first deposits will arrive.
What should you do before you open?
- Pick a product with room for fees. After materials, packaging and a label, you need enough left for about 9.5% + $0.45 in Etsy fees, and for the occasional 15% Offsite Ads fee.
- Check demand. Search Etsy for your product the way a buyer would. Look at what already sells, how it's photographed and priced, and the words in the titles.
- Work out your break-even price with and without an Offsite Ads fee. See the pricing formula in our Offsite Ads guide.
- Take clear photos in natural light: the whole item, details, scale (in a hand or a room) and packaging.
- Plan shipping. Weigh a packed order and set up a shipping profile. Etsy charges its fees on shipping too, so keep what you charge close to the real label cost.
- Write your policies for returns, exchanges, processing times and custom orders.
How do you write listings that get found?
Etsy search matches the words shoppers type against your titles, tags, categories and attributes, then ranks listings using quality signals such as clicks, favorites and sales. For a new shop:
- Put what the item is at the start of the title, in the words a buyer would search. Keep it short and readable.
- Use all 13 tags, each up to 20 characters, with multi-word phrases that don't just repeat the title.
- Fill in every attribute (color, material, occasion). They work like extra tags.
- Answer buyer questions in the first lines of the description: size, materials, what's included, and processing time.
Our Etsy SEO guide covers titles, tags and attributes in detail, with a free title and tag checker.
Read the Etsy SEO guideWhat should you do after your first sales?
- Track profit per order, not just revenue. Etsy's payout is after fees but before your materials, labels and ads.
- Watch Offsite Ads. Check which orders came from ads, and decide whether to opt out before your shop reaches US$10,000 in sales, when it becomes required.
- Ask happy buyers for reviews through Etsy's normal follow-up; reviews help new shops convert.
- Add listings steadily. Each listing is another way to be found; variations of your best seller are the safest bets.
- Keep records for taxes: Etsy's sales and fee reports, plus your own cost receipts.
Run your new Etsy shop with real numbers
The Shop Profit Dashboard imports your Etsy order CSVs, works out every Etsy fee including Offsite Ads, and shows profit by month and product, break-even prices and a title and tag checker. Pay once, no account, your data stays on your device.
Frequently asked questions
How much does it cost to start an Etsy shop?
New shops may pay a one-time, non-refundable set-up fee (US$15 when Etsy introduced it) and US$0.20 per listing. There is no monthly fee unless you choose Etsy Plus. After that, each sale pays a 6.5% transaction fee and payment processing (3% + US$0.25 in the US).
Is it free to open an Etsy shop?
Not usually. Etsy's policy says new shops may be required to pay a one-time set-up fee when they add billing details, and you pay US$0.20 for each listing. Etsy may waive the set-up fee during promotions.
What do I need to open an Etsy shop?
An Etsy account, a bank account for deposits, a credit or debit card for fees, a government photo ID and a phone or computer camera for identity verification, two-factor authentication, and at least one listing.
What are the rules for an Etsy shop name?
Shop names must be 4 to 20 characters, with no spaces or special characters, no profanity, and not already in use or infringing a trademark.
How long does it take to set up an Etsy shop?
The sign-up steps can be done in one sitting if you have your photos, listing details, ID and bank information ready. Identity verification can add a short wait.
Do I need a business license to sell on Etsy?
Etsy does not require one to open a shop, but your city, state, province or country may require registration or tax collection for your business. Check your local rules.
Steps and fees are from Etsy's help center, Fees & Payments Policy and Seller Handbook as of September 30, 2026. Etsy changes its sign-up process and fees from time to time; what you see at sign-up applies. This is general information, not legal or tax advice. SuanSupply is not affiliated with, endorsed by or sponsored by Etsy, Inc.