Sep 1, 2023

How to Price Products on Etsy: A Comprehensive Guide

Learn how to properly price your products on Etsy.

How to Price Products on Etsy: A Comprehensive Guide

Etsy is a popular platform for artisans, crafters, and vintage sellers to showcase and sell their unique creations. One of the biggest challenges for new and even seasoned Etsy sellers is how to price their products effectively. Pricing isn't just about covering costs; it’s a reflection of your brand, your work, and the value you offer. Let's dive into how to price products on Etsy to maximize both profitability and customer appeal.

How to Price Products on Etsy

1. Calculate Your Costs

Materials: This is the basic cost of all the raw materials that go into making your product. For instance, if you are selling hand-made jewelry, this would include the cost of beads, wires, clasps, etc.

Labor: Determine how long it takes you to make the product and assign an hourly wage to your time. Be realistic and fair to yourself.

Overhead: This is a bit trickier. Overhead includes everything from the electricity you use, the tools you bought to make your product, rent for your workshop, etc. Try to estimate these costs on a per-item basis.

Etsy Fees: Remember, Etsy charges listing fees, transaction fees, and payment processing fees. Make sure you factor in these costs. The Etsy Fee Calculator makes it easy to estimate fees and properly price your products.

etsy fee calculator screen shot

2. Research Your Competition

Look at other sellers on Etsy who offer similar products. What are their price points? This will give you a ballpark figure of what customers are willing to pay. However, don't just copy their prices. Understand your own value proposition and how it stands out from the competition - there could be an opportunity to charge more than your competitors, assuming your product is more valuable.

3. Perceived Value

Some products can command higher prices because of their perceived value. Limited edition items, personalized items, or products with a compelling backstory might be perceived as more valuable by potential customers.

4. Target Audience

Understanding your audience is crucial. Are your products catered to budget-conscious consumers or those looking for luxury, one-of-a-kind pieces? Your target demographic plays a huge role in determining price points.

5. Psychological Pricing

Consider using strategies like charm pricing, which involves setting prices slightly below a round number (e.g., $19.99 instead of $20). Studies have shown that this can make products seem more attractive to buyers.

6. Consider Offering Discounts or Bundles

Especially when you're just starting out, offering promotional prices utilizing Etsy's discounting features can entice buyers to make a purchase. This can also encourage bulk purchases and increase your average order value. Check out our free Etsy SEO and Conversion Optimization Checklist which highlights 35+ ways to optimize your pricing and offers to make more sales on Etsy.

7. Regularly Review and Adjust

The market is always changing. What works now might not work in a few months or years. Periodically review your costs and the competitive landscape, and adjust your prices accordingly.

8. Offer Free Shipping

Shipping costs can be a deal-breaker for some buyers. Decide whether you want to include shipping in your product price (and advertise it as "free shipping") or if you want it separate. If you're charging separately for shipping, be transparent and fair with your rates. Our recommendation is to offer free shipping on all items. The Etsy Fee Calculator will help ensure you're factoring your shipping costs into your pricing.

Etsy even displays a "free shipping" badge to help you stand out from competition.

9. Profit Margin

Finally, after considering all the costs and potential discounts, ensure you have a healthy profit margin. This not only keeps your business sustainable but also gives you room for future growth and investment.


Pricing products on Etsy (or anywhere, really) is a blend of art and science. It's not just about covering costs but also understanding the market, your customers, and the value you provide. Regularly revisiting your pricing strategy will ensure you remain competitive while also maintaining a sustainable and profitable business. Happy selling!

If you haven't yet, check out the Etsy Fee Calculator here for help pricing your products.

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