Etsy vs Payhip for Digital Downloads (2026): What You Keep From a $5, $10, or $20 Sale
Etsy brings buyers. Payhip keeps more of each sale. Here is the fee math, and the point where each one wins.
On a $10 digital download sold in the US, Etsy takes about $1.40 (listing, transaction, and payment processing) and you keep $8.60. On Payhip’s free plan you keep about $8.91. The real gap opens when Etsy charges its 15% Offsite Ads fee on a sale it brought in from an ad. Choose Etsy if you need its search traffic; choose Payhip if you send buyers yourself.
The fees, side by side
Scroll the table sideways to see every column.
| Fee | Etsy (US seller) | Payhip Free |
|---|---|---|
| Monthly fee | $0 | $0 |
| Listing fee | $0.20 per listing, renewed after each sale | $0 |
| Transaction fee | 6.5% of the item price | 5% |
| Payment processing | 3% + $0.25 | Stripe or PayPal standard rate (about 2.9% + $0.30 for a US card) |
| Advertising fee | 15% on Offsite Ads orders if your shop made under $10,000 in the last 365 days (you can opt out); 12% and mandatory above $10,000 | None |
| One-time setup | Shop setup fee, shown at signup where it applies | None |
Payhip also has paid plans: Plus ($29 a month, 2% fee) and Pro ($99 a month, 0% fee).
What you keep, by price
US buyer, card payment, no Offsite Ads unless noted.
Scroll the table sideways to see every column.
| Price | Etsy fees | You keep on Etsy | Etsy with Offsite Ads (15%) | You keep on Payhip Free |
|---|---|---|---|---|
| $5 | $0.93 | $4.08 | $3.33 | $4.30 |
| $10 | $1.40 | $8.60 | $7.10 | $8.91 |
| $20 | $2.35 | $17.65 | $14.65 | $18.12 |
Without ads, the gap is small: about 20 to 50 cents per sale. One Offsite Ads order costs as much as several normal sales’ worth of difference.
What the fees do not show
- Traffic. Etsy is a marketplace with its own search. Payhip has no marketplace; buyers come from your links, email list, or social posts. If nobody knows you yet, Etsy’s fee buys visibility.
- Customer ownership. On Payhip, buyers are your customers and you can email them. On Etsy, you sell inside Etsy’s rules.
- Listing count. Etsy charges $0.20 per listing even before it sells, and again after each sale. A 100-item template shop pays $20 just to list.
- Tax. Both say they handle certain taxes for you; Payhip says it collects and pays EU/UK VAT and US/Canadian sales tax on digital products. Check your own obligations before choosing on fees alone.
How Etsy’s fees add up on one sale
| Etsy fee | Amount | On a $10 sale |
|---|---|---|
| Listing fee | $0.20 per listing (renews every 4 months or when the item sells) | $0.20 |
| Transaction fee | 6.5% of the sale price | $0.65 |
| Payment processing (US) | 3% + $0.25 | $0.55 |
| Total | $1.40 — you keep $8.60 | |
| Offsite Ads (only on sales from Etsy’s ads) | 15% of the sale | +$1.50 — you keep $7.10 |
What you keep at every price
| Price | Etsy | Etsy, sale from Offsite Ads | Payhip Free |
|---|---|---|---|
| $5 | $4.03 | $3.28 | $4.31 |
| $10 | $8.60 | $7.10 | $8.91 |
| $20 | $17.65 | $14.65 | $18.12 |
| $50 | $44.80 | $37.30 | $45.75 |
The gap per sale is small until Offsite Ads applies. Etsy’s real value is buyers who find you through Etsy search; Payhip’s is a lower fee on buyers you bring yourself.
The setup most sellers end up with
- List on Etsy to be found by new buyers.
- Open a Payhip store for buyers who come from your own audience: email list, Pinterest, YouTube, Instagram.
- Send your own audience to Payhip, so Etsy’s fees and Offsite Ads only apply to buyers Etsy actually brought you.
Which one to choose
- No audience yet, product that people search for (planners, templates, printables) → start on Etsy, and opt out of Offsite Ads while you are under $10,000 a year if the 15% hurts.
- You already have followers or an email list → sell on Payhip and keep the customer. Compare Payhip plans (affiliate link).
- Both → list your best sellers on Etsy for discovery, and link to Payhip from your own channels.
Sources: Etsy Fees & Payments Policy, Etsy Payments Policy, Payhip pricing (affiliate link).
Selling on Etsy? See every Etsy fee for digital downloads, by country, and what you keep from each sale.
Run your own numbers: try the free Etsy fee calculator.
Related: Payhip Review · Sell Without a Website · Gumroad Fees Explained
FAQ
How much does Etsy take from a $10 digital download?
About $1.40 in the US: $0.20 listing fee, $0.65 transaction fee (6.5%) and $0.55 payment processing (3% + $0.25). You keep $8.60.
What is Etsy’s Offsite Ads fee?
15% of the sale price on orders that come from Etsy’s ads on other sites. On a $10 sale you would keep about $7.10.
Is Payhip cheaper than Etsy?
Yes, per sale. On a $10 sale you keep about $8.91 on Payhip Free vs $8.60 on Etsy, and much more if Etsy charges Offsite Ads.
Should I sell on Etsy or Payhip?
Use Etsy to be found by new buyers and Payhip for buyers you bring yourself. Many sellers run both.
Does Payhip have a marketplace like Etsy?
No search marketplace like Etsy’s. Payhip works best when you bring the buyers.
Not sure which platform fits your numbers? Put in your price and monthly sales and see what you keep on every platform at once. If you are just starting, a Payhip store costs $0 until you sell, so you can set it up first and decide later.
Compare my numbers →Start a free Payhip store