Etsy listing fees for sellers can be categorized as advertising, commissions, or miscellaneous business expenses. You can choose the category that best reflects the nature of the fee, though there's no penalty for choosing incorrectly as long as you report your actual expenses.
Etsy transaction fees should be categorized as miscellaneous expenses or commissions. Some TurboTax users also suggest reporting them under "supplies" if they are specific to your business. It's recommended to choose the category that best describes the nature of the expense.
Etsy processing fees for sellers fall under the category of payment processing fees.