Pricing Etsy products in Canada means adding up materials, packaging, the shipping you actually pay, a fair rate for your time, and Etsy’s per-sale fees, then setting a price that still leaves you something after an Offsite Ads sale. For a seller with a Canadian bank account, Etsy’s own fee pages list roughly 10% of each order in percentage fees (6.5% transaction, 3% processing on domestic and US orders, and a 0.50% Canadian regulatory fee) plus small fixed amounts. This guide suits makers who will time how long one item really takes before they set a price.
How to open the shop is in the Etsy shop side hustle guide. Set-up money is in Etsy shop startup costs. Turning a price into orders is in your first Etsy sale. If you are deciding between platforms, see Etsy vs Shopify in Canada.
What fees does Etsy charge Canadian sellers in 2026?
Etsy charges Canadian sellers a listing fee, a transaction fee, a payment processing fee, and a Canada-specific Regulatory Operating fee, with Offsite Ads fees on some orders. The rates below come from Etsy’s help centre; open the live pages before you rely on them, because Etsy can change them.
| Fee | Rate for a Canadian seller | Charged on | Source |
|---|---|---|---|
| Listing | US$0.20 per listing; listings expire after 4 months | Each listing and each auto-renewal | Etsy fees |
| Transaction | 6.5% | Total order, including shipping and gift wrap | Etsy fees |
| Payment processing | 3% + CA$0.25 (domestic or US orders); 4% + CA$0.25 (international) | Total sale price, including shipping and any sales tax | Etsy Payments fees |
| Regulatory Operating fee | 0.50% | Item price plus shipping and gift wrap | Regulatory Operating fee |
| Offsite Ads | 15%, or 12% once you made at least $10,000 on Etsy in the past 365 days; never more than $100 per order | Order total, only on sales attributed to those ads | Etsy fees |
| Currency conversion | 2.5% | When your listing currency differs from your bank account currency | Etsy fees |
Etsy also lists a one-time set-up fee that “varies by location” and is shown during shop set-up. Fixed fees such as the listing fee are published in US dollars and converted at the market rate when they are charged. At the Bank of Canada’s daily exchange rate of 1.4246 CAD per USD on October 2, 2026, US$0.20 is about $0.28. Listing in Canadian dollars with a Canadian bank account avoids the 2.5% conversion fee.
Which pricing approaches work for an Etsy shop in Canada?
Most Etsy sellers in Canada use cost-plus pricing built from materials and timed labour, then check the result against sold listings for similar items. Choosing between free shipping and charged shipping changes the number, not the method, because Etsy’s percentage fees apply to shipping too.
| Approach | How it works | Works well for | Watch out for |
|---|---|---|---|
| Cost-plus with labour | Materials + packaging + timed labour + fees | Handmade items you can time | Forgetting photo, listing, and packing time |
| Shipping built into price | One price, “free shipping” to Canadian buyers | Light items with predictable postage | Heavier orders to remote addresses |
| Charged shipping | Item price plus a shipping profile | Heavy or bulky items | Fees still apply to the shipping amount |
| Tiered (small, standard, custom) | Same item in sizes or with personalization | Prints, jewellery, signs | Custom work that takes twice as long |
| Market check | Compare sold, not just listed, items | Every listing | Copying a price without knowing its costs |
How do you calculate an Etsy price in Canada?
Calculate an Etsy price in Canada by adding your costs and target pay, then dividing by one minus Etsy’s percentage fees so the fees are covered. Round, and test what an Offsite Ads sale would leave.
Step 1: Count materials and packaging per item
Divide a batch of supplies by the number of items it makes. Include mailers, tissue, labels, and tape.
Step 2: Time the item and set an hourly rate
Time making, photographing, listing, and packing one item. Multiply by the hourly pay you want.
Step 3: Price shipping from a real label quote
Weigh and measure the packed item and price the label you will actually buy. A guess hurts most on heavy items.
Step 4: Divide by one minus the percentage fees
For a domestic or US order the percentage fees are 6.5% + 3% + 0.50% = 10%. Price before fixed fees = costs ÷ 0.90. Then add the CA$0.25 processing fee and the converted listing fee.
Step 5: Check the Offsite Ads case and set tax aside
Work out what you keep if 15% of the order goes to Offsite Ads. Then hold back a share of profit for income tax and CPP.
Illustrative example
This is a teaching sketch with assumed numbers, not a quote, average, or survey. Suppose a candle costs $8.00 in materials and $1.50 in packaging, takes 45 minutes in total, and ships for $10.00, which you charge as shipping. You want $24 an hour, so labour is 0.75 × $24 = $18.00. The order total is the item price plus $10.00 shipping.
Costs to cover are $8.00 + $1.50 + $18.00 + $10.00 = $37.50. Dividing by 0.90 gives $41.67. Add $0.25 processing and $0.28 for the listing fee: $42.20 for the whole order. Subtract the $10.00 shipping and the item price is about $32.20, which you might round to $34.
Check the result at $34 + $10 shipping = $44 order total. Transaction fee: 6.5% × $44 = $2.86. Processing: 3% × $44 + $0.25 = $1.57. Regulatory fee: 0.50% × $44 = $0.22. Listing: $0.28. Fees total $4.93. You keep $44 − $4.93 − $10.00 − $9.50 = $19.57 for 45 minutes, or about $26 an hour. If the same order came from Offsite Ads, 15% × $44 = $6.60 more comes off, leaving $12.97, or about $17 an hour. This sketch ignores sales tax.
What does a sample Etsy price sheet look like in Canada?
An Etsy price sheet in Canada lists each item’s costs, time, price, and what you keep after fees. The table is an illustrative example using the same assumptions (domestic order, $24 an hour target, fees as listed above), not a market average.
| Item (illustrative) | Materials + packaging | Time | Shipping charged | Item price | Fees on order | Kept before tax |
|---|---|---|---|---|---|---|
| Greeting card set | $3.00 | 20 min | $3.00 | $14 | $2.23 | $8.77 |
| Soy candle | $9.50 | 45 min | $10.00 | $34 | $4.93 | $19.57 |
| Custom wood sign | $22.00 | 2 h | $18.00 | $95 | $11.83 | $61.17 |
“Kept before tax” is the order total minus fees, shipping, and materials. The card set shows how small items struggle: the fixed fees take a larger share. Bundles help.
When should you raise Etsy prices in Canada?
Raise Etsy prices in Canada when materials or postage go up, when your time per item is higher than you priced, when Etsy changes a fee, or when items sell out faster than you can make them. Change one listing at a time and watch views and sales for a few weeks.
Re-run Step 4 whenever you pass $10,000 in sales over 365 days, because the Offsite Ads rate drops to 12%. Re-run it if you register for GST/HST, because how tax appears in your price changes (below).
What Etsy pricing mistakes are common in Canada?
Common Etsy pricing mistakes in Canada are leaving out your own time, forgetting that fees apply to shipping, and ignoring the Offsite Ads rate. Each one makes a “good” price lose money on a busy week.
Do not price from listed prices; check sold items. Do not forget the Canadian Regulatory Operating fee, which most US pricing calculators skip. List in Canadian dollars if your bank account is Canadian, to avoid the 2.5% conversion fee. Price custom work from timed hours, not from a standard item. The Etsy startup costs guide covers the one-time costs to recover too.
How do GST/HST and income tax affect Etsy prices in Canada?
Etsy income in Canada is self-employment income reported on Form T2125. GST/HST registration is required once your taxable supplies pass the $30,000 small-supplier threshold in a calendar quarter or over four consecutive quarters, across all your businesses.
Etsy’s page on what it remits to Canadian tax authorities says that if you have not added a GST/HST ID, Etsy collects GST/HST at checkout on physical items shipped from a Canadian seller to a Canadian buyer and remits it. If you add a GST/HST ID, Etsy stops collecting it on those sales, and you include the tax in your listing price and remit it yourself, so your prices need to change. Etsy also charges GST/HST on seller fees such as listing and ad fees.
Self-employed people pay both shares of CPP on net self-employment earnings; see CPP contributions and the tax set-aside guide. A tool such as FreshBooks TODO-AFFILIATE can track fees and expenses once a spreadsheet gets crowded; a spreadsheet is enough at the start.
This is not tax, legal, or insurance advice.
Which guides sit next to Etsy pricing in Canada?
Etsy pricing in Canada sits beside print-on-demand pricing for designs printed to order, printables pricing for digital downloads, and Shopify store pricing if you sell from your own site. Seasonal planning is in the holiday Etsy and craft market guide. The Etsy review for Canadian sellers lists every fee that comes out of a sale.
Costing items and doing the fee math is week 1 of the Etsy shop 30-day launch plan.
What are the common questions?
How much does Etsy take from a sale in Canada?
For a Canadian seller on a domestic or US order, Etsy's percentage fees are a 6.5% transaction fee, 3% payment processing, and a 0.50% Regulatory Operating fee, plus CA$0.25 per order for processing and US$0.20 per listing. Offsite Ads add 15% (or 12%) on sales from those ads, capped at $100 per order.
Do Etsy fees apply to shipping?
Yes. Etsy's transaction fee applies to the total order including shipping and gift wrap, and the payment processing and regulatory fees are also charged on shipping. Price shipping from a real label quote and include it in your fee math.
Should I offer free shipping on Etsy in Canada?
It can work for light items with predictable postage, because the shipping cost moves into the item price. Fees apply either way. For heavy or bulky items, a charged shipping profile is usually easier to keep accurate.
Does Etsy collect GST/HST for Canadian sellers?
Etsy says it collects GST/HST on physical items shipped from a Canadian seller to a Canadian buyer when the seller has not added a GST/HST ID. If you add your ID, Etsy stops collecting it on those sales and you include and remit the tax yourself. This is not tax advice.
How do I know if my Etsy price is too low?
Work out what you keep after materials, shipping, and fees, divide by the time the item takes, and compare that with the hourly pay you want. Then check what you would keep if the sale came through Offsite Ads.
Which sources support this guide?
The rules, rates, and platform requirements in this guide are checked against these primary sources. Retail price ranges are labelled as ranges to verify locally, and they are not quotes.
- What are the Fees and Taxes for Selling on Etsy? — Etsy
- What are Payment Processing Fees for Selling on Etsy? — Etsy
- What is a Regulatory Operating Fee? — Etsy
- What Does Etsy Remit to Canadian Tax Authorities? — Etsy
- Daily exchange rates — Bank of Canada
- When to register for and start charging the GST/HST — Canada Revenue Agency
- Form T2125, Statement of Business or Professional Activities — Canada Revenue Agency
- Contributions to the Canada Pension Plan — Government of Canada