Etsy Revenue Model: How Does Etsy Make Money

To make a website like Etsy, firstly, you need to understand the Etsy phenomenon and its business idea. So our research would be incomplete without digging to the roots of the success of one of the foremost how to start a website like etsy.

Etsy's revenue model is similar to the one of the Amazon marketplaces. He makes money from the various charges that it charges to users of his site.

Listing Charges

Sellers should pay a minimum of $0.20 to list their products on Etsy. While $0.20 might seem small, it adds up quickly when you consider the fact that thousands of products are listed on online marketplace like etsy.

Registrations should expire at the end of four months. Model-only inscriptions do not expire. If you list multiple quantities of the same item, the initial listing fee will be $0.20, and the listing will be renewed at $0.20 after each of the items sells.

Sales Commissions

In addition to the registration fee, Etsy also charges sellers a commission for each sale referred to as a transaction fee. Etsy charges a transaction fee of 3.5% of the entire amount of each sale. Etsy takes an out-of-price cut of the product you define.


Etsy enables vendors to advertise their products and shop on their platform for a certain amount.
Paid Advertising – Advertising billed at cost per click (CPC) which lists the vendor's products.
Shopping Engine Ads - Etsy pays for the seller's list of products on other commercial platforms such as Google Shopping, Bing and Facebook.


Etsy provides vendors with a free suite of tools to help them manage their store and products known as Etsy Standard. Apart from that, it also offers Etsy Plus, a subscription service that provides extra tools on top of those provided free to vendors for a tax.

Payment Processing

Etsy allows "eligible" vendors to be able to use Etsy Payments to facilitate purchasers to purchase using various payment methods in how to create a platform like etsy.
Credit cards, debit cards, gift cards, vouchers, online wallets from the Etsy website. For all transactions going through Etsy, it charges a fee for handling the transaction.

Currency Conversion

Etsy charges 2.5% of the total amount as currency conversion costs while converting it into the seller's preferred currency.

Etsy has always emphasized the support of its sellers in numerous ways as possible. Develop marketplace app like etsy, which helped them grow even bigger because it led to more word-of-mouth advertising. Etsy offers support specialists to those in need of an extra hand and resources to learn about running a profitable shop.

Trending on Indie Hackers
We've bootstrapped to $1.6m ARR in a crowded market. AMA. 45 comments We just reached a major milestone: $500k ARR 🔥 23 comments I bought Twitter•fm. What should I do with it? 7 comments Tiiny Host hits $2,000 MRR 📈🎉 7 comments We are LIVE on Product Hunt 🚀🚀 3 comments Hyper-Realistic FaceSwaps in 30 Seconds (Our Development Story) 2 comments