Etsy has announced a significant policy change affecting how sellers charge for shipping. Starting March 3, 2025, Etsy will remove the option for sellers to add separate handling or packaging fees to orders. This means that if you currently use Etsy’s calculated shipping settings and tack on an extra “handling” fee, that extra charge will no longer be applied at checkout after the policy takes effect.

The goal of this change is to simplify pricing and improve transparency for buyers. Shoppers will see more straightforward pricing on Etsy, with fewer surprise add-on fees during checkout. For sellers, it means you’ll need to adjust how you cover any packaging or handling costs. Etsy’s guidance is to fold those costs into your product’s price or the base shipping rate.

By incorporating what you would have charged as a handling fee into the item price, you can keep your overall earnings the same while providing a cleaner price presentation to customers. Etsy has stated that this should help “meet buyer expectations” by aligning the displayed prices with the final costs more closely, potentially reducing cart abandonment due to unexpected fees.

If you have shipping profiles with handling or packaging fees set up, Etsy will automatically remove those extra fees on March 3. It’s a good idea to review your shipping profiles and pricing strategy ahead of the change. Consider updating your listing prices or standard shipping charges to account for any materials or labor you usually cover with a handling fee. The total amount a buyer pays can remain unchanged; it will just be distributed differently so that the buyer sees it as part of the item price or shipping cost from the start.

This update is part of Etsy’s ongoing efforts to improve the buyer and seller experience on the platform. While it may require a bit of upfront work for sellers to adjust, the end result could be a more transparent marketplace. Clearer pricing can build trust with customers, which is good for business in the long run. Make sure to adjust your Etsy shop settings before the March deadline so your shop is fully compliant and optimized under the new no-handling-fee policy.