It could face higher advertising costs in the future as Google ( GOOG) discontinued its free product listing service effective in the fall of 2012, replacing it with a new fee-based listing service.

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Etsy makes money by charging a listing fee of 20 cents for each item and getting 3.5% of every sale.

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Etsy makes money by charging sellers a listing fee of 20 cents for each item and receiving a 3.5% commission on the price of each sale.

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If no buyer's agent is involved, the listing brokerage and agent get to keep the entire fee.

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