Selling on Etsy feels like the dream side income for a parent who makes things: no boss, no commute, and customers who love handmade. Some parents build a solid business this way. Many more find that once fees, materials, postage and their own time are counted, they’re working for very little. This guide helps you work out which one you’re likely to be before you start.
Quick answer: Etsy charges a $0.20 listing fee, a 6.5% transaction fee and a payment processing fee (4% + £0.20 in the UK, 4% + €0.30 in Ireland, 3% + $0.25 in the US). UK sellers also pay a 0.48% regulatory fee from June 2026. Before ads, expect Etsy to keep roughly 11–15% of each sale.
What sells well on Etsy?
Etsy works best for items people search for by description, where “handmade” or “personalised” adds value. Common successful categories include:
- Personalised gifts: name prints, engraved items, custom pet portraits
- Jewellery and accessories
- Home decor: candles, ceramics, prints, textiles
- Party and wedding items
- Craft supplies and patterns
Products that are hard to make profitable include anything heavy or fragile to post, anything that takes many hours each, and anything that’s cheaply available on Amazon.
The fees, in full
Etsy’s fees stack up, so it’s worth listing them all:
- Listing fee: $0.20 per item, renewed every four months or when it sells
- Transaction fee: 6.5% of the total, including postage and gift wrap
- Payment processing: 4% + £0.20 (UK), 4% + €0.30 (Ireland), 3% + $0.25 (US)
- Regulatory operating fee (UK): 0.48% from 22 June 2026
- Offsite Ads: 12–15% on sales Etsy brings in through its own adverts. This becomes compulsory once your shop passes $10,000 in yearly sales
- VAT on fees: UK and Irish sellers who aren’t VAT-registered pay VAT on top of Etsy’s fees
A quick UK example: an £80 order with free delivery costs about £9.13 in core fees plus about £1.83 VAT on those fees, so roughly £11 in total. If Etsy’s ads brought in the sale, add another £9.60–£12.
Fees change often. Always check Etsy’s own Fees & Payments Policy before setting prices.
How to price for real profit when selling on Etsy
The most common mistake is pricing from what feels “fair” rather than from costs. Work it out like this:
- Materials for one item, including packaging
- Your time at an hourly rate you’d accept, even if it’s modest
- Etsy fees at around 15% to be safe
- Postage, if you’re not charging it separately
- A margin for returns, breakages and quiet months
If the final price is far above what similar shops charge, the product probably won’t work as a business, even if it’s lovely. That’s useful to know before you buy stock.
Does selling on Etsy work around children?
Partly. Making, photographing and listing can fit around naps and school runs. The harder parts are:
- Post office trips and keeping to Etsy’s dispatch times
- Customer messages, which buyers expect you to answer within a day
- Peak season. November and December can bring most of the year’s sales, right when family life is busiest
- Space. Stock, materials and packaging take over a room quickly, and some crafts (resin, candles, sharp tools) aren’t safe around small children
Many parents keep a smaller range of products and use Etsy’s “vacation mode” during school holidays.
Selling on Etsy: getting your first sales
- Photos matter more than anything. Use natural light, a plain background and show the item in use.
- Write titles the way buyers search, for example “personalised baby name print nursery wall art” rather than “Sunny Days print”.
- Start with a few strong products in one niche, rather than one of everything.
- Expect a slow start. Many new shops take weeks or months to get their first sale. That’s normal.
- Use social media and Pinterest to send your own traffic, which also avoids Offsite Ads fees on those sales.
Tax and reporting when selling on Etsy
Etsy is now required to report sellers to tax authorities once they pass 30 sales or about €2,000 (roughly £1,700) in a calendar year. This applies to sellers in Ireland and the rest of the EU, and to UK sellers through HMRC. In the US, platforms send Form 1099-K once federal thresholds are met.
Being reported doesn’t create a new tax, but it does mean tax offices can see your sales. In the UK the £1,000 trading allowance covers small amounts. Our side income tax checker shows when you need to register in your country.
Red flags and scams to avoid
- “Etsy coaches” charging hundreds to “guarantee” sales
- Messages from “buyers” asking you to click a link, pay a fee or move off Etsy to complete a sale
- Courses selling ready-made “best-seller” products that hundreds of other people are also listing
Always keep conversations and payments inside Etsy. If something feels wrong, check it with our work-from-home scam checker.
The downsides
- Profit per hour is often low once your time is counted
- Fees rise regularly, and you have little control over them
- Etsy owns the customer relationship and can suspend shops
- Search changes can reduce traffic overnight
Is selling on Etsy right for you?
It’s a good fit if you already make something people ask to buy, enjoy the craft for its own sake, and are happy with a modest side income at first. It’s a poor fit if you need dependable money quickly. If you’d rather avoid posting parcels, look at our guide to selling digital products, or take the Remote Work Matcher to compare options.
Find out when you need to declare what you earn from home.
