Etsy profitability guide
Etsy Offsite Ads fees: when 12% or 15% still leaves a profit
An Offsite Ads sale is not automatically a good sale. Test the attributed fee against the contribution margin the order had before advertising.
Policy checked 24 Sep 2026What Etsy charges
Etsy says an attributed Offsite Ads order normally carries a 15% advertising fee when a shop has made less than $10,000 USD in Etsy sales over the prior 365 days. After a shop reaches that threshold, attributed orders use a discounted 12% rate and participation becomes mandatory for the lifetime of the shop.
| Shop status | Offsite Ads rate | Participation |
|---|---|---|
| Under $10,000 in the prior 365 days | 15% | Eligible shops may opt out |
| Reached $10,000 in the prior 365 days | 12% | Required for the lifetime of the shop |
For US sellers, the percentage is applied to the attributed order amount—generally the listing price plus shipping and gift wrap, excluding US sales tax. Etsy caps the Offsite Ads fee for a single attributed order at $100.
Why the 15% fee can feel larger than expected
Offsite Ads is added on top of the listing fee, transaction fee, Etsy Payments processing, and your own product, packaging, labor, and postage costs. A seller who looks only at the 15% advertising line can miss the other deductions hitting the same order.
Suppose an item is $32 and the buyer pays $5 shipping. A 15% Offsite Ads fee on the $37 item-and-shipping amount is $5.55. At 12%, it is $4.44. The $1.11 difference helps, but the order still needs enough margin to absorb all the standard fees and fulfillment costs.
Calculate the order before deciding
- Enter the item price and shipping charged in the Etsy fee calculator.
- Add your actual postage, product, packaging, and labor costs.
- Select no attributed ad, 15%, and 12% to compare all three outcomes.
- Use the target-profit result to find the price needed under your realistic ad scenario.
Decision rule: an attributed sale can still be worthwhile when its profit clears your required dollar margin. Revenue alone is not the test.
Attribution matters
Etsy’s policy describes an attributed order as one placed after a buyer clicks an Offsite Ad and then buys from the shop within 30 days, subject to the policy’s attribution rules. That means the advertised listing and the purchased item are not always the only factors to review. Check the fee shown in your Etsy payment account when reconciling a real order.
Questions sellers commonly ask
Can a smaller Etsy shop turn Offsite Ads off?
Etsy says shops below the $10,000 threshold may be eligible to opt out. Once the threshold is reached, participation becomes mandatory under the current policy.
Does the Offsite Ads fee replace Etsy's transaction fee?
No. It is an additional advertising fee on an attributed order. Standard listing, transaction, and payment-processing fees can still apply.
Should I raise every price by 15%?
Not automatically. Only attributed orders carry the fee, and adding 15% to a price does not always restore the same margin because percentage-based fees also change as the price changes. Model your own order mix and target profit.
Is a 12% attributed order always profitable?
No. The fee rate is only one input. Product cost, postage, packaging, labor, discounts, returns, and standard Etsy fees can still make the order unprofitable.
Official sources
Marketplace policies change. This guide explains the policy checked on the date above; confirm an important pricing decision against Etsy’s current terms.