What Is a Shipping Transaction Fee?

In your Payment account, you may see a shipping transaction fee under Recent activities if you charge shipping for items in your shop. The shipping transaction fee is a 5% transaction fee on the cost of shipping, which we introduced on July 1, 2018. This is similar to the 5% transaction fee on the item price.

Applying the transaction fee to shipping is a standard practice in e-commerce marketplaces. The shipping transaction fee ensures that the standard 5% transaction fee applies to the entire price that you charge to the buyer. It also helps to remove any incentive to have disproportionate shipping prices.

For example: You sell an item on Etsy that costs $30, and $5 for shipping. You’ll pay 5% of the transaction cost and 5% of the shipping transaction cost. This is the same as the 5% transaction fee on a $35 item with free shipping.

Learn more about how to price your shipping competitively.

Learn more about fees for selling on Etsy.

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