Why is Etsy cheaper than eBay in the US?
eBay charges one big fee: 13.6% of the whole order, which counts the item, the postage the buyer pays you and the sales tax, plus a per-order fee of $0.40 ($0.30 on orders of $10 or less). Etsy splits its charge into three smaller ones: 6.5% of the item and postage, 3% + $0.25 for processing the payment, and $0.20 for the listing.
Add Etsy’s two percentages and you get 9.5% against eBay’s 13.6%. The fixed parts are close ($0.45 on Etsy, $0.40 on eBay), so the gap grows with the price: $4.05 on a $100 item and $20.45 on $500. Only on very cheap items, below $3.72, does eBay take less.
When does eBay leave you more?
Three cases. First, a sale that comes from one of Etsy’s Offsite Ads: Etsy then adds 15% of the order (12% for shops selling $10,000 a year or more), at most $100. On the $40 sale above, that lifts Etsy’s fees to $11.82, well over eBay’s $7.09.
Second, eBay categories with a low rate of their own. Guitars and basses pay 6.7% up to $7,500, so a $1,000 guitar costs $67.40 to sell on eBay and $95.45 on Etsy. Third, private sellers in the UK, who pay eBay nothing at all (below).
eBay and Etsy fees for UK sellers
A private seller living in the UK pays eBay no final value fee on most items. eBay charges the buyer instead: a Buyer Protection fee of £1.90 on a £30 item. Etsy charges every UK shop 6.5% of the item and postage, 4% + £0.20 for processing and a 0.48% regulatory operating fee, so £3.93 on that sale, plus a listing fee set in dollars that our total leaves out.
Selling as a business changes the eBay side. In eBay’s “everything else” category a business seller pays £4.91 on the same sale, against Etsy’s £3.93, so Etsy leaves a business £0.98 more.
Listing fees and items that sit unsold
Etsy’s $0.20 is paid when you list and again each time the listing renews, sold or not, and once more for each extra item you sell from the same listing. eBay gives a US seller 250 free listings a month and charges $0.35 for each one after that. The table above counts one Etsy listing fee per sale. A shop with many slow sellers pays Etsy’s listing fee more than once for the same item, which narrows Etsy’s lead.