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Do Etsy Sellers Get Paid Before Shipping?

Do Etsy Sellers Get Paid Before Shipping?

Etsy is a popular online marketplace that allows sellers to showcase their handmade or vintage items to a global audience. One of the most commonly asked questions by sellers is whether they get paid before shipping their products. The answer is not straightforward, as it depends on various factors.

According to Etsy’s policy, sellers do not receive payments right away. Instead, payments are held until the transaction is complete, which means that the buyer has received the item and is satisfied with the purchase. However, there are ways to work around this policy, such as offering expedited shipping or using a different payment processor. In this article, we will explore the different payment options available to Etsy sellers and how they can ensure a smooth transaction process.

When Do Etsy Sellers Get Paid?

As an Etsy seller, you may wonder when you will receive payment for your sales. The answer is that it depends on the payment processing timeframe and the payment method you choose.

Payment Processing Timeframe

Once an order is placed in your Etsy shop, the payment processing timeframe begins. This timeframe can vary depending on the payment method used by the buyer.

If you use Etsy Payments, which is the primary way to get paid on Etsy, the processing time for credit card payments is typically 3-5 business days. For PayPal payments, the processing time is usually 1-2 business days.

It’s important to note that the processing time is separate from the shipping timeframe. You should not ship the item until you have received payment.

If you choose to offer direct checkout, the processing time can vary depending on the payment method used by the buyer. For example, credit card payments can take up to 7 business days to process.

Payment Methods

Etsy offers several payment methods for sellers to receive payment. These include:

  • Etsy Payments: This is the primary payment method for sellers on Etsy. It allows buyers to use most payment methods to purchase from your shop, and you receive direct deposits to your bank account.

  • PayPal: Some sellers choose to use PayPal to receive payment. If you choose this method, you will need to connect your PayPal account to your Etsy shop.

  • Direct Checkout: This payment method allows buyers to pay with credit cards, debit cards, and Etsy gift cards. You will need to set up a merchant account with your bank to use this payment method.

In conclusion, Etsy sellers can receive payment for their sales through Etsy Payments, PayPal, or Direct Checkout. The payment processing timeframe can vary depending on the payment method used by the buyer. It’s important to wait until payment has been received before shipping the item.

Shipping on Etsy

When it comes to shipping on Etsy, there are a few things to keep in mind. Let’s take a closer look at shipping costs and fees, as well as the shipping timeline.

Shipping Costs and Fees

As an Etsy seller, you have control over the shipping costs you charge your customers. You can choose to offer free shipping, charge a flat rate, or calculate shipping costs based on the weight and destination of the package.

It’s important to keep in mind that Etsy does charge a fee for shipping labels purchased through their platform. However, this fee is often lower than what you would pay if you were to purchase a label through a shipping carrier directly.

Shipping Timeline

Etsy does not require sellers to ship their items within a specific timeframe. However, it’s important to communicate with your customers about when they can expect their item to be shipped.

Once you receive an order, you should aim to ship it as soon as possible. This will help ensure that your customer receives their item in a timely manner, which can lead to positive reviews and repeat business.

It’s also important to keep in mind that Etsy does not release payment to sellers until after the item has been shipped. This means that you may need to cover the cost of shipping upfront, unless you have already received payment from the customer.

In summary, as an Etsy seller, you have control over the shipping costs you charge your customers, and it’s important to communicate with your customers about when they can expect their item to be shipped. Additionally, Etsy does not release payment to sellers until after the item has been shipped.

Etsy Payment Processing

Etsy Payments is the payment processing system used by Etsy sellers to receive payments from customers. It is a secure payment system that allows buyers to pay for their purchases using a variety of payment methods, including credit cards, debit cards, and PayPal.

How Etsy Processes Payments

When a buyer places an order on Etsy, the payment is processed through Etsy Payments. Etsy collects the payment from the buyer, deducts any fees, and then deposits the payment into the seller’s Etsy account. The payment is then transferred to the seller’s bank account or PayPal account, depending on the seller’s payment preferences.

Etsy Payments charges processing fees on each transaction, which are deducted from the total sale price of the item, including shipping fees and any applicable sales tax. These fees vary by location and can be found on the Etsy Fees page.

Payment Disputes and Refunds

In the event of a payment dispute or refund, Etsy Payments provides a dispute resolution process. If a buyer disputes a payment, Etsy will investigate the issue and work with the seller and buyer to resolve the dispute. If a refund is issued, Etsy will refund the buyer and deduct the refund amount from the seller’s Etsy account.

To prevent payment disputes and refunds, it is important for sellers to accurately describe their items and provide clear and detailed photos. Sellers should also communicate with buyers throughout the transaction to ensure that any questions or concerns are addressed in a timely manner.

In conclusion, Etsy Payments is a secure and reliable payment processing system that allows sellers to receive payments from buyers. By following best practices and communicating effectively with buyers, sellers can minimize payment disputes and refunds and ensure a positive transaction experience for all parties involved.


In conclusion, Etsy sellers do not always get paid before shipping. Etsy does not send payments to sellers right away, so sellers may find they haven’t received their payment before shipping the product. However, there are a few ways to get around this. Sellers can opt for daily deposits and reach their daily minimum, and their funds will be deposited into their bank account the following day, once payment processing is complete.

It’s important to note that payment processing fees are charged on each transaction that uses Etsy Payments. These processing fees appear in the seller’s payment account and are deducted prior to deposit. They are in addition to Etsy’s transaction fees. Sellers in India are charged India Payments fees for the processing of domestic sales.

Overall, it’s important for Etsy sellers to understand the payment process and their options for receiving payment before shipping their products. By choosing the right payment options and understanding the fees associated with each transaction, sellers can ensure they receive payment in a timely and efficient manner.