How to Make Money on Etsy in 2027 (Fees + What Sells)

You make money on Etsy by opening a shop and selling items you make, design or source yourself: handmade goods, vintage items, craft supplies or digital downloads such as printables. Opening a shop is free, but Etsy charges a small listing fee per item and takes a share of each sale, so your price has to cover materials, time and fees. Sellers in many countries can join, including Pakistan, where payouts go through Payoneer. This guide covers what sells, the setup steps, the fees with a worked example, and how to get your first orders.

What you can sell on Etsy

Etsy is a marketplace for creative and one-of-a-kind items, not general retail. Its seller rules ask that you made, designed, hand-picked or sourced what you list, so reselling mass-produced products is not allowed. The main categories are:

Handmade items: jewellery, candles, ceramics, embroidery, leather goods, clothing and home decor.
Digital downloads: planners, wall-art prints, resume and social media templates, sewing or knitting patterns. No shipping, and one design can sell many times.
Personalised items: engraved gifts, custom name prints, portraits drawn from photos.
Vintage: items at least 20 years old.
Craft supplies: beads, fabric, tools and kits for other makers.

If you are just starting and have little money to invest, digital downloads are the lowest-risk option: you need a design skill and software, but no stock and no shipping. Our guide to selling digital products covers what to make.

How to open an Etsy shop, step by step

Create an Etsy account with an email you check often. Order and payout messages go there.
Choose “Sell on Etsy” and set your shop language, country and currency.
Pick a shop name that is short, easy to spell and fits what you sell.
Add your first listings. Each needs clear photos, a title with the words buyers search for, a description, a price and shipping settings (or file uploads for digital items).
Set up how you get paid. Etsy pays sellers through Etsy Payments. In some countries, including Pakistan, you connect a Payoneer account to receive payouts. Etsy verifies your identity and bank details during this step.
Add billing details (a card) so Etsy can charge listing fees, and complete your shop policies and “About” section.

Etsy’s list of supported countries and payout methods changes, so check Etsy’s help page on Payoneer and Etsy Payments before you start.

Etsy fees and what you actually keep

These are Etsy’s main seller fees at the time of writing. Rates differ by country, so confirm them on Etsy’s official fees page.

Fee	Amount	When it applies
Listing fee	$0.20 per listing	When you publish a listing, and each time it renews (every 4 months or after a sale)
Transaction fee	6.5% of the order total, including shipping	Every sale
Payment processing	Varies by country (for example 3% + $0.25 for US sellers)	Every sale paid through Etsy Payments
Currency conversion	A percentage of the sale	If your listing currency differs from your payout account currency
Offsite Ads	15% of the order (12% for shops over $10,000 in yearly sales)	Only on sales that come from Etsy’s ads on other websites

Worked example (US seller rates): you sell a $25 print with $5 shipping, so the order total is $30.

Listing fee: $0.20
Transaction fee: 6.5% of $30 = $1.95
Payment processing: 3% of $30 + $0.25 = $1.15
Total Etsy fees: $3.30. You receive $26.70, before the cost of materials, packaging and postage.

If that sale came through an Offsite Ad, add another 15% ($4.50). Build fees into your prices from the start rather than discovering them after your first sales. If you also sell services on freelance platforms, our Freelance Fee Calculator shows how those platforms’ cuts compare.

How to get your first sales

Write titles the way buyers search. “Minimalist weekly planner printable, A4 and Letter” beats “Beautiful planner”. Type your product into Etsy’s search bar and note the suggestions.
Use all your photo slots. Show the item in use, its size next to something familiar, and close-ups. For digital items, show mock-ups of the printed result.
Start with a focused range. Ten listings around one theme build a clearer shop than ten unrelated items.
Price for profit, not just to be cheapest. Add up materials, your time, fees and shipping, then compare with similar shops.
Bring your own traffic. Pinterest is especially useful for Etsy sellers because every pin can link to a listing. See our Pinterest SEO guide. Short videos on TikTok work well for showing how items are made.
Answer messages quickly and ship on time. Early reviews matter more than anything else for new shops.

How much can you earn on Etsy?

There is no typical figure. Earnings depend on what you sell, your prices, your photos and how much traffic you bring in, and many new shops make few or no sales in their first months. Treat Etsy as a small business you grow over time: track your profit per item after fees and costs, keep the products that sell, and drop the ones that don’t.

Mistakes to avoid

Reselling factory-made products as handmade. It breaks Etsy’s rules and can get your shop suspended.
Using designs you don’t own, such as brand logos, cartoon characters or other sellers’ artwork. Intellectual property complaints are a common reason shops are closed.
Forgetting fees and shipping when setting prices.
Copying the cheapest competitor. Compete on quality and clear photos instead.

Not sure whether Etsy suits your skills and time? The free Side Hustle Finder suggests options based on your answers, and our list of side hustles you can start with no money covers low-cost alternatives.

Frequently asked questions

Is it free to start selling on Etsy?

Opening a shop is free, but each listing costs $0.20 and Etsy takes a transaction fee and a payment processing fee on every sale.

Can I sell on Etsy from Pakistan?

Yes. Etsy added Pakistan to Etsy Payments in 2025, with payouts through a Payoneer account. Check Etsy’s help centre for the current requirements before you open your shop.

Can I sell digital products on Etsy?

Yes. Printables, templates and patterns are popular because there is no stock or shipping. The same listing and transaction fees apply.

How much does Etsy take from a sale?

For US sellers, typically about 10 to 11% of the order once you add the listing, transaction and processing fees, and more if the sale came through Offsite Ads. Rates vary by country.

Fees, payout methods and supported countries change. Confirm current details on Etsy’s website before relying on any figure. This article is general information, not financial advice.