How to Avoid Paying Marketplace Fees (Etsy, TPT, Fiverr, Upwork, and More)

Stop losing profit to marketplace fees! Learn how to sell your products without paying high Etsy, TPT, Upwork, or Fiverr fees using your own website and smart alternatives.

Introduction

Whether you’re selling crafts, digital lesson plans, or freelance services, marketplace fees can eat a huge chunk of your earnings. Etsy takes 6.5% + listing fees, Teachers Pay Teachers can take up to 45%, and Fiverr takes 20%. Even Amazon Handmade charges 15% per sale. For many sellers, this adds up to thousands of dollars in lost revenue each year.

The good news? You don’t have to accept these high fees. This guide will show you how to keep more of your hard-earned money while still selling successfully online.

The Real Cost of Marketplace Fees

Let’s break down typical fees for some popular platforms:

• Etsy: 6.5% transaction fee + $0.20 listing fee + 3–4% payment processing fee.
• Teachers Pay Teachers (TPT): 20–45% per sale + transaction fees.
• Fiverr: flat 20% cut from every gig.
• Amazon Handmade: ~15% referral fee.

Example: On $1,000 in sales:

• Etsy seller keeps ~$900.
• Fiverr freelancer keeps ~$800.
• TPT seller keeps ~$550–$800 depending on plan.

Why Marketplaces Charge So Much

• They provide exposure, but it comes at a cost.
• No control over your customer data — you can’t email past buyers directly.
• Algorithms change, affecting visibility.
• High competition — your product is next to hundreds or thousands of similar listings.
• Scaling is limited: as your sales grow, fees eat a bigger portion of your profits.

Alternatives to Marketplaces

1. Build Your Own Website (Best Long-Term Option)

Using WordPress + WooCommerce, you can sell digital or physical products for only ~2.9% + $0.30 per transaction via Stripe or PayPal. Shopify is another option (~2–3% fees + $29/month). Benefits include full branding control, direct email collection, and better long-term growth potential.

2. Use Low-Fee or Free Payment Platforms

• Gumroad – free plan 10% fee, good for small creators.
• Payhip – free plan 5% fee, or paid plan 2% fee.
• Direct invoices with PayPal, Stripe, or Wise.

3. Leverage Social Media + Direct Checkout Links

Use Instagram Shopping, TikTok Shop, or Facebook Shop to link directly to your payment processor or low-fee platform. This reduces dependency on marketplaces while still reaching customers.

Step-by-Step Guide to Selling Without Marketplace Fees

1. Buy a domain name (~$12/year).
2. Get hosting (~$5–10/month) with SSL.
3. Install WordPress (one-click installation via most hosts).
4. Install WooCommerce (free plugin for digital and physical products).
5. Add your products – include detailed descriptions, images, and SEO-friendly titles.
6. Connect Stripe or PayPal for secure payments.
7. Promote your store via Pinterest, Instagram, TikTok, and email marketing.

Downsides of Skipping Marketplaces (And How to Overcome Them)

• Less built-in traffic: You need to market your store — use Pinterest, SEO blogs, email campaigns.
• Initial setup takes time: WordPress + WooCommerce setup can take a few hours, but it’s a one-time effort.
• Trust factor: Overcome with professional design, secure checkout, and social proof (reviews, testimonials).

Case Study Examples

• Etsy seller selling $10,000/year in crafts: Etsy profit ~$9,000, WooCommerce profit ~$9,700.
• TPT seller making $20,000/year in lesson plans: TPT profit ~$11,000–16,000, WooCommerce profit ~$19,400.

By selling independently, you save thousands per year — money you can reinvest in marketing, product development, or scaling your business.

Conclusion

Marketplaces are a great starting point, but they cut deeply into your profits. By selling on your own website or using low-fee platforms, you retain more revenue, build your brand, and gain full control over your business.

If you want professional help setting up your own WooCommerce store — optimized for SEO, ready for digital downloads, and built to save you money — Polar Line Services can set it up for you.