SpySeller

Why is Etsy charging me for shipping labels if the buyer already paid shipping?

AAnonymous
1 answer

I sell physical items on Etsy, and I’m confused about how shipping charges and fees are being handled on a recent order.

The buyer paid a separate shipping amount at checkout, but when I try to purchase an Etsy shipping label, it looks like the label cost still comes out of my payment account (and there may be an additional label-related fee). On top of that, this order also has an Offsite Ads fee even though I didn’t intentionally run ads.

How does Etsy apply the buyer’s shipping payment, and what should I check in my settings or payment breakdown to confirm whether I’m being double-charged for shipping and why an Offsite Ads fee was added?

Answers

Hi! This is normal on Etsy: the buyer’s shipping payment is paid to you as part of the order total, and then when you buy an Etsy shipping label, that label is a separate expense Etsy deducts from your Etsy Payments balance—so it looks like you’re “paying again,” but you’re really just spending the shipping money you collected (plus any difference if the label costs more than what you charged).

What to check to confirm you’re not being double-charged for shipping

  • Order total breakdown: In the order details, confirm the buyer was charged Item price + Shipping + tax (if any).
  • Payment account → that specific order: You should typically see:
    • A credit for the order (including the shipping amount the buyer paid)
    • Fees (Etsy transaction fee and payment processing fee—these both apply to the order total and commonly include the shipping charge you collected)
    • A debit for Shipping label (the postage you purchased)
  • Compare “shipping charged” vs “label cost”:
    • If your label cost is higher than what you charged for shipping, the extra comes out of your funds (that’s not a double charge—your shipping price was just low).
    • If your label cost is lower, you effectively keep the difference (minus fees).

About the “extra label-related fee”
Etsy generally doesn’t add a separate “label fee” line beyond the label purchase itself, but you may see the label total change because of things like insurance/signature add-ons, package upgrades, label adjustments, or tax on the label in some locations. The key is whether there’s a separate line item in your payment account (not just a higher label total).

Why you got an Offsite Ads fee even though you didn’t run ads
Offsite Ads are Etsy-run ads (Google/social/partner sites). You can get charged an Offsite Ads fee when a shopper clicks one of those ads and then buys from your shop within Etsy’s attribution window (commonly up to 30 days). You don’t have to start a campaign for this to happen.

What to check:

  • Order details: Etsy usually flags the order as attributed to Offsite Ads.
  • Shop Manager → Settings → Offsite Ads: See whether you’re allowed to opt out.
    • If your shop has hit Etsy’s $10,000 USD threshold in a 12-month/365-day period, participation is typically required (so you can’t opt out).
    • If you’re under the threshold, you can usually choose to opt out (changes aren’t retroactive to orders already attributed).

If you want, paste the line items you see for that order in your Payment account (just the names and amounts—no personal info), and I’ll help you sanity-check whether anything is truly duplicated.

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