Where you sell directly impacts your profit margin. Understanding the fee structures of major platforms helps you make strategic decisions about sales channel allocation.
Etsy Fee Structure
Listing fee: $0.20 per item. Transaction fee: 6.5% of sale price plus shipping. Payment processing: 3% + $0.25. Offsite ads fee: 12-15% on attributed sales. Total effective rate: 10-25% per sale.
Amazon Handmade Fees
No monthly subscription for Handmade. Referral fee: 15% of sale price. Payment processing included. FBA fees additional if used. Total effective rate: 15-25% per sale.
Your Own Website
Domain: $15/year. Hosting: $5-30/month. Payment processing: 2.9% + $0.30. No transaction or referral fees. Total effective rate: 3-4% per sale plus fixed hosting costs.
Hybrid Strategy
Most successful sellers use all three. Marketplaces for customer acquisition and discovery. Own website for maximum margin on repeat customers. Include website cards in marketplace orders.
Break-Even Analysis
At $20 average order, own website saves $2-4 per order versus marketplaces. After 50 orders monthly, the margin savings exceed website hosting costs. The more you sell, the more valuable direct sales become.
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