Does Etsy charge fees on shipping?
Does Etsy take a fee on shipping?
Yes. Etsy's 6.5% transaction fee applies to shipping and gift wrap you charge, and the 3% + $0.25 payment processing fee (US sellers) is charged on the whole order, shipping included. If the order came from an Offsite Ad, that fee is on the item price plus shipping too. So on a $25 item with $5 shipping, about $0.48 of the fees is on the shipping. The shipping label itself is a separate cost: labels bought on Etsy are deducted from your Current balance when bought, at whatever the carrier charges for that package.
Last verified October 30, 2026 against Etsy Help: What are the fees and taxes for selling on Etsy?, Etsy Help: Payment processing fees by country, Etsy Help: How to purchase shipping labels on Etsy, Etsy Help: How to refund shipping labels purchased through Etsy, Etsy Help: USPS shipping labels on Etsy, Etsy Help: What are USPS shipping label adjustments?, Etsy Fees & Payments Policy (last updated Oct 5, 2026). Fee change tracker · How we verify
Which Etsy fees apply to shipping
| Fee | Charged on shipping? | What the source says |
|---|---|---|
| Transaction fee (6.5%) | Yes | Etsy's fees page: the transaction fee applies to shipping and gift wrapping if you charge your customer for them. |
| Payment processing (3% + $0.25, US) | Yes | Taken from the total sale price, including shipping and sales tax. |
| Offsite Ads (15% or 12%, max $100) | Yes, on attributed orders | Etsy's Fees & Payments Policy: a percentage of the total order amount, which is the listing price plus shipping and gift wrap. For US sellers it is not charged on US sales tax. |
| Listing fee ($0.20) | No | Per listing (and per extra quantity sold), not tied to shipping. |
| Shipping label | Separate purchase | Cost depends on carrier, origin, destination, weight and dimensions. Deducted from your Current balance when bought. |
Worked example: charged shipping vs free shipping
Because the fees are a percentage of item plus shipping, Etsy takes the same amount whether you list at $25 + $5 shipping or $30 with free shipping. What changes your profit is the label.
| Order (US seller, US bank) | Transaction | Processing | Label (example) | You keep before listing fee and costs |
|---|---|---|---|---|
| $25 item + $5 shipping | $1.95 | $1.15 | $6.00 | $20.90 |
| $30 item, free shipping | $1.95 | $1.15 | $6.00 | $20.90 |
| $25 item, free shipping (shipping not priced in) | $1.63 | $1.00 | $6.00 | $16.38 |
Arithmetic with Etsy's 6.5% transaction and 3% + $0.25 US processing rates. The $6.00 label is an example amount, not a USPS or carrier rate; your real label price shows on the label purchase page after you enter package details. If the order came from an Offsite Ad, add 15% of item plus shipping ($4.50 on a $30 order). For every fee on a sale, see how much Etsy takes per sale, or run your own numbers in the Etsy fee calculator.
Shipping labels bought on Etsy
- Who can buy them: Etsy offers labels to sellers in Canada, the UK and the US. Etsy's carrier list is Canada Post, Chit Chats, FedEx, Global Postal Shipping, UPS, USPS, Royal Mail and Evri.
- How they're charged: each label shows separately in your Payment account and is deducted from your Current balance when bought. It is not netted from the order like the transaction and processing fees. Etsy says there are no extra membership fees to use labels.
- What sets the price: the carrier, origin, destination, weight and dimensions. For USPS, Etsy mentions possible discounted volume rates and cubic pricing for small, heavy Priority Mail and Ground Advantage packages.
- Non-standard packages: USPS adds $4 for packages that need special handling, such as cylindrical rolls (not mailing tubes), wood or metal packaging, and some liquids.
- Insurance: USPS Ground Advantage, Priority Mail and Priority Mail Express labels include $100 of insurance; Media Mail doesn't.
- Current USPS note: Etsy Help says USPS has a temporary 8% rate increase, expected to last through January 17, 2027, on select services, including Priority Mail, Priority Mail Express, USPS Ground Advantage and Parcel Select. Check your shipping profile prices still cover your labels.
Refunding a label and USPS price adjustments
| Situation | What Etsy Help says |
|---|---|
| Label bought by mistake or not used | Request a refund in Shop Manager > Orders for unused, unscanned labels: USPS less than 30 days old, UPS and FedEx less than 15 days. The carrier approves it, and it generally takes 15-30 days. Approved refunds appear as a credit on your Etsy bill. |
| You're cancelling the order | Request the label refund before cancelling. |
| Label is on a USPS SCAN form you already used | The label refund will be denied. |
| USPS weighed or measured the package differently | USPS may adjust the label price; underpayments are charged and overpayments credited to your Payment account, and Etsy emails you. You have 60 days from the notice to dispute it with USPS. |
How to record Etsy shipping in your books
- Record shipping charged to buyers as part of sales (it's in the order total Etsy charges fees on).
- Record each label as a shipping expense on the date you bought it, and label refunds and USPS adjustments as they post.
- Keep the fees on shipping with your other Etsy fees; they come out of the sale, not the label.
- Once a month, compare shipping charged against labels plus adjustments. If labels cost more, raise shipping prices or build shipping into the item price.
Questions
Does Etsy charge a transaction fee on shipping?
Yes. Etsy's 6.5% transaction fee applies to the shipping and gift wrapping you charge, not just the item price. On $5 of shipping that is $0.33.
Does Etsy charge processing fees on shipping?
Yes. For US sellers the 3% + $0.25 payment processing fee is taken from the total sale price, including shipping and sales tax.
Is free shipping cheaper in Etsy fees?
No. Fees are a percentage of item plus shipping, so a $30 item with free shipping and a $25 item with $5 shipping pay the same: $1.95 transaction and $1.15 processing. Free shipping only costs you more if you don't build the label into the price.
How are Etsy shipping labels charged?
Labels bought on Etsy are deducted from your Current balance when you buy them and show separately in your Payment account. The price depends on carrier, origin, destination, weight and dimensions; Etsy says there are no extra membership fees to use them.
Can I get a refund on an Etsy shipping label?
Yes, for unused, unscanned labels: USPS labels less than 30 days old, UPS and FedEx less than 15 days. Request it in Shop Manager > Orders. The carrier approves it and it generally takes 15-30 days. If you're cancelling the order, request the label refund first.
Why did Etsy charge me a USPS label adjustment?
USPS may adjust a label's price after it weighs and measures the package if the weight, dimensions, package type or drop-off zip code differ from what you entered. You can dispute with USPS within 60 days of the notice.
General information, not tax, legal or accounting advice. Rates change: check the linked official source before you rely on a number. Not yet reviewed by a CPA or EA.
Related: How much Etsy takes per sale · Offsite Ads fee and refunds · Etsy fee calculator · Does Etsy collect sales tax? · Bookkeeping for Etsy sellers · All answer guides