How does Etsy make money?

Etsy makes money via listing fees, transaction fees, advertising and promotional fees, and paid subscriptions. Here is a closer look at the different ways Etsy makes money:

• Listing fees

  Whenever a seller wants to post a product or item listing on Etsy, they must pay the company a listing fee. Etsy charges its sellers $0.20 per item listing. Extra charges are accrued when a seller chooses to renew an item listing.

• Transaction fees

  Esty makes money off of transaction fees in the form of commission charges. Every time a seller on Etsy completes one sale of their item or product, Etsy takes a 5% commission fee on the sale.

• Advertising and promotional fees

  The company also generates revenue via advertising and promotional fees. Etsy offers a wide variety of promotional services to help its sellers increase their sales rates on the platform. These services include Etsy Ads and Offsite Ads. These promotions and advertisements are displayed throughout the company's website buying platform.

• Paid subscriptions

  This refers to Etsy's seller option of subscribing to a premium seller model. This subscription is called Etsy Plus, and it offers multiple bonus features to online sellers. Etsy charges $10 per month for a premium subscription to Etsy Plus.