Pricing guide
How to price Etsy products for profit
A profitable price has to cover the product, shipping, platform fees, payment fees, discounts, refunds, and the traffic needed to sell it. For the updated step-by-step framework, use the Etsy pricing formula.
Start with contribution profit
Contribution profit is the money left from one order after variable costs. For a maker, that usually means sale price plus shipping charged, minus production cost, shipping cost, marketplace fees, payment fees, listing fees, and ad spend.
Use margin, not markup
Markup compares price to cost. Margin compares profit to revenue. Margin is usually the clearer number because it shows how much room is left for discounts, ads, and mistakes.
Keep fee assumptions editable
Marketplace and payment fees can change by country, plan, order type, and account status. A calculator should let the seller adjust those assumptions instead of hiding them; the Etsy fees explained guide breaks down the common fee inputs.
Use a traffic budget
If a product only works with free traffic, it may still be worth selling. If the plan includes paid ads, influencer placements, or offsite ads, include that percentage before calling the listing profitable.
Once a listing is live, track actual order profit in the Etsy Profit Tracker so the pricing model can be checked against real fees and costs.