How to sell on Etsy UK: fees, pricing and getting your first sales (2026)
A practical guide to starting an Etsy shop in the UK: every fee explained with a worked example, how to price for profit, what sells, getting found in search, and tax.
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A friend of mine makes a solid living selling his woodwork on Etsy, mostly done in the hours when his kids are at school. It is one of the best side hustles if you make something people want, but you have to price properly or the fees eat your profit.
Etsy fees explained
| Fee | Cost | When |
|---|---|---|
| Listing fee | 20p (US$0.20) per item | When you list, and each time it renews or sells |
| Transaction fee | 6.5% of item price plus postage | When it sells |
| Payment processing | 4% of the order total plus 20p | When it sells |
| Offsite Ads | 15% of the sale, or 12% over US$10,000 a year in sales | Only on sales from Etsy's adverts |
| VAT | 20% added to Etsy's fees | On your monthly bill |
Fees per MoneyMargins' 2026 breakdown. Check Etsy's own fee page when you sign up, as fees change.
Worked example: a £25 item with £3.50 postage
- Listing fee: £0.16 (US$0.20)
- Transaction fee: 6.5% of £28.50 = £1.85
- Payment processing: 4% of £28.50 + £0.20 = £1.34
- VAT on those fees: about £0.67
- Total Etsy fees: about £4.02
You receive £28.50 minus £4.02 = £24.48. Take off your postage cost and materials to see your real profit.
How to price for profit
A simple formula:
Price = materials + packaging + your time + fees + profit
- Pay yourself an hourly rate. Selling at material cost only is a hobby, not a side hustle.
- Build postage into the price and offer free delivery. Etsy search favours free UK delivery.
- Check similar items, but compete on quality and photos, not the lowest price.
What sells on Etsy
- Personalised gifts: names, dates, custom prints and engraved items.
- Home decor: prints, candles, ceramics and woodwork.
- Jewellery and accessories.
- Digital downloads: planners, templates and printable art. No postage or stock, but lots of competition.
- Wedding and party items: invitations, favours and signs.
How to get your first sales
- Photos: bright, natural light, a clean background and a lifestyle shot showing the item in use.
- Titles and tags: use the words buyers type, such as "personalised wooden name sign nursery". Use all 13 tags.
- List more items: each listing is a way to be found. Start with 10 to 20.
- Get early reviews: share your shop with friends and family who genuinely want your products, and give great service.
- Share off Etsy: Instagram, TikTok and Pinterest bring buyers to your shop.
Tax on Etsy income
Making items to sell is trading. Once your income goes over £1,000 in a tax year (£3,000 from April 2027), register for Self Assessment. You can deduct materials, postage, packaging and Etsy fees, or take the trading allowance instead.
Etsy reports sellers with 30 or more sales, or about £1,700 or more, in a calendar year to HMRC.
Free toolSide hustle tax calculatorSee how much tax and National Insurance you owe on side income, and what to set aside each month.Common questions
Is it worth selling on Etsy in the UK?
Yes, if your product sells for enough to cover around 15% in fees and still pay you properly for your time. Low-priced items struggle once fees and postage are taken off.
Can I sell on Etsy without a business?
You can start as an individual. Once you are trading over the trading allowance you are self-employed for tax and must register with HMRC.
How do I avoid Etsy Offsite Ads fees?
You can opt out in your shop settings if your sales are under US$10,000 a year. Above that, it is compulsory but charged at 12%.
This is general information, not personal tax or financial advice. Tax rules change and depend on your circumstances, so check GOV.UK or speak to an accountant before acting.