How to Price Your Products on Etsy
Monday, March 31, 2025
The most common and simplest formula would be: Materials + Labor + Overhead, then multiply the answer by two – that would be your wholesale price. For the retail price, it would be the wholesale price multiplied by two. If this formula works for you, then great. However, you also have to consider all those fees from Etsy just be sure that you’re getting enough profit from your products.
The Product Category Should be Included in Your Title
The product category is what buyers are likely to search for when they are looking for a specific product. For instance, you make pillowcases. Make sure you use “pillowcase” in the product title.
Use Long-tail Keywords
First, you have to set an hourly rate and pay yourself and your other team members a fair wage. Several professional crafters would go for $12 to $20 per hour.
Now that you have your hourly rate, you have to consider the time it takes for you to do your items – from designing to shopping for supplies, constructing the item, and taking photos of the item.
What Makes Up the Overhead?
Your overhead cost may include the following:
- Office supplies
- Tools used to make your items
- Packaging supplies
- Utilities (electricity, internet connection, etc.)
- PayPal Fees
- Etsy Fees
The cost for the overhead can be an estimate because it’s hard to calculate the exact cost.
To make things easier, you can calculate your overhead by coming up with an average rate for all of them. You also have to come up with an estimate of how many items are sold per month or year. Here’s an example:
Let’s estimate the monthly cost for the following:
- Office supplies – $20
- Tools – $20
- Packaging supplies – $30
- Utilities – $60
- PayPal fees – $50
- Etsy Fees – $50
The sum would be $230 per month.
Let’s say, you’re able to sell 50 pieces per month for one item.
That would be $230 divided by 50, which is $4.60.
That $4.60 would be your overhead cost for each piece.
Example Computation
- Materials – $3.50
- Labor – $5
- Overhead – $4.60
That would be ($3.50 + $5 + $4.60) x 2 = $26.20 for the wholesale price
Then $26.20 x 2 = $52.40 for the retail price.
About Charles Curry
Charles founded his Etsy shop Wall Decal Source in 2012. He opened his decal shop and decided to create a nursery decal for his sisters new baby. Funnily enough he published the decal as an item for sale on his Etsy shop and people really liked it. Well a few years later and his shop has been almost completely taken over by nursery wall decals. He must still be a kid at heart. As Charles tested and tried all sorts of methods to expand his shop he stumbled upon a few simple formulas for consistently growing Etsy sales and views.
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