Example 1Custom Ceramic Mug (US Seller)
Given:$28 selling price, $6 item cost, $8 actual shipping, $5 shipping charged, US, no offsite ad
Rezultat:Listing $0.20 + Transaction $2.15 + Payment $1.24 = $3.59 fees; Net profit $15.41, margin 55.0%
A classic example of a pottery maker shipping a heavy mug.
Even though the buyer only paid $5 for shipping, the seller spent $8 to mail it. This $3 shipping gap reduces profit slightly, but because of a strong price point and low material cost, the seller still walks away with a highly sustainable $15.41 net profit (a 55% margin) after Etsy takes its $3.59 cut.
Example 2Knit Winter Hat with Offsite Ad (High-volume US Seller)
Given:$40 selling price, $10 cost, $5 ship, $0 charged (Free shipping!), US, offsite ad
Rezultat:Total fees ~$10.25 (incl. 15% offsite), net profit ~$14.75, margin 36.9%
Offering free shipping is great for search rankings, but offsite ads take a big bite.
When an offsite ad brings in the buyer, the extra 15% fee ($6.00) makes a big impact. Combined with standard fees, total platform costs hit $10.25. The seller still walks away with $14.75, which is decent, but it shows why keeping an eye on ad sales is crucial for high-volume shops.
Example 3Handmade Leather Wallet (UK Seller)
Given:$60 price, $18 cost, $6 ship, $6 charged, UK, no offsite
Rezultat:Total fees ~$7.33 (incl. UK 4% + £0.20 processing), net profit ~$34.67, margin 57.8%
UK payment processing is slightly higher, but premium pricing keeps margins strong.
This British leather craftsman charges the exact shipping cost to the buyer, keeping shipping costs perfectly neutral. Because UK payment processing is slightly higher (4% + £0.20), the fees total $7.33. However, with a premium product, the 57.8% profit margin remains excellent.
Example 4Low-Cost Vinyl Stickers (US Seller)
Given:$5 price, $0.50 cost, $1 ship, $1 charged, US, no offsite
Rezultat:Total fees ~$1.02, net profit ~$3.48, margin 69.6%
Fixed fees represent a huge percentage of low-cost items.
Selling low-cost items like stickers can be tricky because fixed fees (like the $0.20 listing fee and $0.25 processing base) represent a huge percentage of the price. While a 69.6% margin looks great on paper, a net profit of $3.48 per sale means the seller needs to sell in high volumes or create multi-packs to make real money.