What category is Etsy in bookkeeping?

What Etsy charges are

Etsy pays out your shop's sales to your bank after keeping its fees. Money you pay Etsy is either a fee it could not take from a payout, or a purchase from another shop.

How Even Margin categorizes Etsy

Sales Revenue. Money you pay Etsy: suggested as Merchant & Payment Processing Fees, for your review list.

• Even Margin recognizes Etsy on your bank transaction, using the merchant list its team curates.
• An Etsy payout into your bank is categorized as Sales Revenue at medium confidence and goes to your review list to confirm.
• Money you pay Etsy can be a fee or a purchase from one of its shops, so Even Margin suggests Merchant & Payment Processing Fees at medium confidence and puts it on your review list too.

When a different category fits

Whatever category you pick for an Etsy transaction stays: Even Margin never overwrites a choice you made.

• Supplies you buy on Etsy as a shopper arrive as Etsy too. On your review list, change them from fees to Inventory & Materials, and a rule on the amount or description keeps them there.
• Etsy Ads, if billed on their own, are Advertising & Promotion.
• Shipping labels bought on Etsy are Shipping, Fulfillment & Postage.

How do I see what I keep after Etsy's fees?

Etsy's payment account page lists the sales and fees behind each payout. For one product, put its price and what reached your bank into the free margin calculator to see what you keep on each sale.

Why is the payout less than my sales?

Etsy takes its fees before paying out. Your payment account on Etsy lists each fee, and the margin calculator shows what you keep on a sale.

About this page

Reviewed 2026-10-08 by the Even Margin team.

These are categories for your books; for how a cost is treated on your tax return, ask your accountant. Merchant names are trademarks of their owners, and Even Margin is not affiliated with them.