Etsy Seller Bookkeeping 101
What You Need to Track
If you’re an Etsy seller trying to keep track of everything from sales to shipping costs in a notebook or a cluttered Google Sheet… you’re not alone.
Bookkeeping can feel intimidating — especially if you’re creative by nature and not into numbers. But trust me: once you know what to track (and have the right tools), it gets way easier.
Whether you’re brand new to Etsy or you’ve been selling for a while, here’s your no-fluff guide to what you actually need to track to keep your finances organized and your profits clear.
Etsy Sales (Your Gross Income)
Your total sales on Etsy include:
Product price
Shipping charges
Sales tax collected (by Etsy)
👉 Why it matters: This is your top-line revenue — but it’s not your profit. You’ll subtract expenses and fees from this later.
Tip: Record every sale, even refunds, in your spreadsheet so your monthly totals stay accurate.
Etsy Fees (They Add Up Fast)
Here are the most common fees Etsy deducts from your earnings:
$0.20 Listing fee (per product)
6.5% Transaction fee
3% + $0.25 Payment processing fee (varies by region)
Optional ad fees (if using Etsy Ads or Offsite Ads)
👉 Why it matters: These fees directly reduce your profit. If you’re not tracking them, you might think you’re earning more than you really are.
Cost of Goods Sold (COGS)
This includes everything it takes to create and deliver your product:
Materials & supplies
Packaging
Shipping labels
Labor (if applicable)
👉 Why it matters: Knowing your costs per product helps you price correctly and avoid undercharging.
Business Expenses
Aside from COGS, don’t forget about:
Software (Canva, email tools, etc.)
Subscriptions
Office supplies
Education or training
Equipment (printer, shipping scale, etc.)
Pro tip: Categorize these expenses in your spreadsheet — they may be tax-deductible!
Profit (AKA What You Keep)
Here’s the formula:
Profit = Sales – Etsy Fees – COGS – Expenses
Knowing your real profit helps you:
Price products with confidence
Set money aside for taxes
Plan your business growth
Make It Easy with One Tool
Feeling overwhelmed tracking all this manually?
That’s why I created the Etsy Seller Bookkeeping Bundle — an easy-to-use spreadsheet that auto-calculates Etsy fees, tracks your income and expenses, and gives you a monthly profit report.
👉 Get the Etsy Seller Bookkeeping Bundle here
It’s beginner-friendly, works with Google Sheets, and comes with a step-by-step tutorial to get you set up in minutes.
Bonus: Use the Etsy Profit Calculator to Price Smarter
Not sure if your current pricing is working? Use the Etsy Profit Calculator to see your real profit per sale — after fees and costs — so you can adjust your prices and keep more of what you earn.