Methodology & editorial policy

Every result is only as useful as its inputs and boundaries.

Facts, examples, and observations

Official platform rules are labeled as official facts and include sources and a check date. Invented numerical scenarios are labeled hypothetical. Derived calculations are checked programmatically. We do not describe official-document research as hands-on product testing.

Our contribution model

The initial model covers one item in a positive-value USD order, a US seller, and a US bank account. Discounted item price is rounded half up to cents. Revenue equals that price plus buyer-paid shipping. The transaction fee excludes sales tax; payment processing includes the known tax amount. An attributed Offsite Ads scenario is selected explicitly.

R = rounded discounted item price + buyer shipping
Transaction = round2(R × 0.065)
Processing = round2((R + tax) × 0.03 + 0.25)
Offsite = round2(min(R × selected rate, 100))
Contribution = R − transaction − processing − offsite
               − allocated listing fee − direct costs

Each fee is rounded separately before summing. This is an estimation convention, not a complete platform billing simulator. The rule version is etsy-us-2026-10-08-v1, checked October 8, 2026. Unknown effective dates are left unspecified.

Excluded costs and unsupported orders

Fixed overhead, income tax, taxes on seller fees, Etsy Ads, refunds, disputes, currency conversion, gift wrapping, personalization, and multi-item orders are outside the simplified model. Zero-revenue orders are unsupported. Known sales tax is an input, not a tax calculation.

Editorial decisions and corrections

Recommendation suitability and costs come before commercial relationships. We include free alternatives and do not invent reviews, traffic, credentials, or merchant terms. A changed source requires review before a fee update; a page hash change alone does not prove a policy change. Material changes update the article check date and retain evidence.

Sources: Etsy fee policy, payment fees, Offsite Ads.