Start with the decision
A buyer pays 30 for an item and 5 for shipping. You receive 35 of order revenue before fees; that does not mean the 5 shipping line passes through untouched. In the US model, transaction fees apply to charged shipping as well as item revenue. Actual postage is a separate cost.
Worked calculation
At 6.5% transaction and 3% + 0.25 processing, the example has 3.575 in those fees before allocated listing charges. Add 0.20 listing allocation and subtract 12 product cost and 5 postage: contribution is 14.225, displayed as 14.23.
Compare shipping revenue with postage
For this order model, contribution starts with item revenue after any discount plus charged shipping. Subtract the modeled marketplace and processing charges, listing allocation, product and packaging cost, labor and actual postage. Keep tax treatment and the fee base consistent with the official account records.
Separate the amount collected for postage from the postage label you buy. If the buyer pays 5 and the label costs 5.60, both numbers belong in the scenario: the first affects the fee base and the second is a fulfillment cost. Calling both simply “shipping” hides the 0.60 shortfall and can make two listings look identical when their delivery economics differ.
Check the changed-cost scenario
For a useful comparison, hold the item price and product cost steady, then compare buyer-paid shipping with shipping included in the displayed price. Check the resulting contribution in each case and make sure the delivery promise remains realistic. This is a pricing comparison; it does not predict clicks, conversion or search placement.
| Input or result | Value |
|---|---|
| Item / shipping charged | 30 / 5 |
| Actual product / postage cost | 12 / 5 |
| Listing / processing fixed | 0.20 / 0.25 |
| Fees at 6.5% + 3% | 3.775 |
| Contribution | 14.225 → 14.23 |
Changing charged shipping to zero while keeping the item at 30 and postage at 5 gives 9.70 contribution. Moving the shipping charge into the item price produces a different comparison. Keep order revenue and actual postage in separate rows.
Use the example with your own inputs
If you instead absorb shipping, enter zero charged shipping but keep actual postage. Compare the result before deciding whether a free-shipping offer is affordable.
Etsy Fee & Profit Calculator | PourMarginScope and source checks
These are planning examples, not actual seller results. Keep currency, tax basis and cost allocation consistent. Enter your own figures and reconcile with your records; tax, demand, refunds and unlisted business costs can change the outcome.
Fee source reviewed 14 October 2026: Etsy fee documentation. US processing assumptions are 3% + 0.25; other countries differ. Check Etsy payment-processing country rates.