Etsy Fees Aren’t That Bad”… But For Who?

Celebrating My official First Etsy Sale

By Sara 🍒Sazzle Stitches🍒

This week marked a big milestone for Sazzle Stitches…..my first official sale via Etsy 🎉

I have never had particularly strong opinions on Etsy fees. I always thought, quite simply, “a sale’s a sale.” Any sale felt like a win, regardless of where it came from.

Then I finally heard it.

That little “ching ching” notification.

At first, I had no idea what it even was. Then I saw the notification pop up telling me an item had sold, and I cannot lie, it made me smile. All that hard work had paid off.

It was not just a sale, it was validation and a confidence boost all wrapped into one notification.

Running a Handmade Business Behind the Scenes

All the hard work had paid off (eventually!)… And when I say hard work, I mean far more than just making the item.

Behind that single sale sits hours of managing Instagram, Facebook, TikTok, Shopify, and listings on Vinted. It includes replying to Instagram messages, Facebook messages, comments, text messages, and WhatsApp. It includes marketing on eBay and Vinted, engaging with customers, and trying to stay visible in a very noisy online space.

There is also the work people rarely see.

Trying my hand at being a “professional photographer” – I use that term very lightly…trying to take half decent photos to showcase my work properly. Packing orders. Ordering stock. Quality checking every piece. Designing, practising, sourcing knitters, and purchasing beautiful knits and yarn, which is honestly the best part. And finally, actually creating the work itself, which I truly love.

All of that exists before and after a single sale.

Etsy Fees Explained from a Handmade Seller’s Perspective

I get the argument. If I was not selling online, I would probably be selling from a physical shop. That would mean rent, bills, insurance, and all the costs that come with simply existing as a shop. Fair enough. Etsy skips all of that and hands you a ready-made storefront without the commitment of a lease, and on paper, that sounds great.

But here is the thing.

A physical shop gives you something back for that money. It sits there. People walk past it. They wander in. It exists whether you post on Instagram that day or not.

With Etsy, you are still paying, but you are also fighting for attention. Visibility is not guaranteed. Sales are not guaranteed. You can pour time into listings, photos, SEO, and social media, and still hear nothing for weeks.

So when a sale finally happens, and a noticeable chunk of it disappears in fees, it hits differently. Not because Etsy should be free, but because that percentage lands entirely on that one sale. There is no volume to soften the blow.

And when what you are selling is handmade, something you have physically created with your time, money, and care, that hit feels personal. Not dramatic. Just real.

Handmade Products vs Digital Products on Etsy

For sellers with high-volume sales, or digital products that can be created once and sold repeatedly, the fees likely do not feel as painful. Once the work is done, every additional sale scales without extra materials, extra time, or extra cost. In that situation, a percentage-based fee makes sense because it is absorbed across volume.

BUT handmade businesses work very differently.

Every item I sell through Sazzle Stitches requires physical materials that must be bought upfront, time, skill, and creative energy, packaging and preparation, and emotional investment because handmade work is personal. Nothing about it scales easily.

Is there a profit to be made running a small business?

So when Etsy takes around 20 percent once all fees are combined, that percentage is not coming from spare profit. It is coming straight out of the value of the work itself.

And here is the part that really surprised me. I do not think I even priced my item with profit in mind.

Realistically, I was probably looking at £1 to £2 profit, if that. Financially, you cannot really be in this for the money. Not at this stage, and not with handmade work. This is done for the love of creativity.

Everything else, the socials, the marketing, the messages, and the platforms, comes part and parcel with the nature of the work. It is about getting your name out there, building trust, and growing something meaningful over time.

Are Etsy Fees Fair for Small Handmade Businesses?

So maybe the issue is not that Etsy fees are universally too high or not that bad. Maybe it depends on whether you are selling at scale, or selling with heart.

And that leaves me celebrating a milestone I am genuinely proud of, while also questioning how sustainable this model really is for small handmade businesses built on creativity, care, and love. 🍒✨🌸🌼

Let’s talk..

Let’s Talk: Your Experience Selling on Etsy

I am sharing this not as a complaint, and not as a final opinion, but as an open conversation. I would genuinely love to hear from other makers, creatives, and small business owners. Do Etsy fees feel fair once you factor in the time, care, and love behind handmade work? Does it feel different if you sell at volume, or sell digital products? And how do you personally balance creativity, sustainability, and cost?

This was my first official Etsy sale, and while I am proud of that milestone, I know this journey is still unfolding. Let’s talk, share experiences, and learn from one another, because these conversations matter just as much as the sales themselves.

Much love Sara x

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