how to start an etsy shop business plan

How To Start An Etsy Shop: Ready To Sell In 9 Easy Steps

Updated: Apr 3, 2024, 9:56am

Table of Contents

Before getting started, 9 steps to set up an etsy shop, how to sell on etsy, bottom line, frequently asked questions (faqs).

If you’ve ever made artisan or handmade goods, you’ve probably heard “You should sell these on Etsy” a time or two. Learning how to set up an Etsy store is easy. Here are nine simple steps for you to have your shop ready to go in a single day. We’ll also delve into how to manage your store once it is up and running, so you can get the best results possible.

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Before even creating your Etsy account, be sure you have a unique design, high-quality photos to showcase your product, a business bank account and plenty of packing materials.

We’re going to assume you already have a viable product, but it’s worth mentioning that branding is everything when getting your first Etsy sale. If this isn’t your strong suit, hire a graphic designer to create your product labels or purchase a template from Etsy. You can then print these labels at home using a laser printer or order labels online.

You’ve worked so hard to create and label your product—make sure the photos showcase the effort you’ve put into it. You don’t necessarily need to hire a professional photographer to take product images. Instead, find a sunny window and use portrait mode on your phone to take images of your products on a white background (poster board works great for this). Alternatively, order a simple light box from Amazon.

To make it easier to file your business taxes, set up a separate bank account to handle all of your Etsy expenses and transactions. This way, you have every business-related expense in one place and not mingled with your personal money.

Packing Materials

Etsy buyers expect their packages to ship quickly, so be sure to have all of your packing material ahead of time. This includes boxes, biodegradable packing peanuts, packing tape and shipping labels. Once you’re regularly making sales, you may want to consider branded boxes and a thermal label printer.

Below are nine steps to get your Etsy shop up and running.

1. Create Your Etsy Account

To create a seller account, you must first have a consumer Etsy account. Navigate to “Sign In” in the top right corner and a dialogue box for credentials will open. Click on “Register” if you don’t already have an account. You will receive an email asking to confirm your account.

After signing in, next to the shopping cart in the top right corner is a gray circle with a silhouette on it. When you click on the circle, a drop-down menu gives you an option to click on “Sell on Etsy.”

After landing on the “Sell on Etsy” page, there’s a black “Open Your Etsy Shop” button below the banner.

2. Enter Your Shop Preferences

Here, enter your shop preferences, which include language, shop country, shop currency and whether your shop is your full-time income or not. When finished, click “Save and continue” in the bottom right corner.

3. Name Your Shop

You can name your shop in 20 characters or less, and it must be unique from other shops. Your name may only have numbers and unaccented Roman letters without spaces. Enter the proposed name you want and click “check availability.” If you’re not sure what to name your shop, Etsy has tips for choosing a shop name . Once set, you can only change your shop name once, so choose carefully. After deciding on a name, click “Save and continue.”

4. Create Your Listings

Now you will create your listings. Etsy recommends having a minimum of 10 different listings for a greater chance of visibility.

Your listing includes:

• Photos: At least one photo is required, and you can add up to 10 photos. In addition to product images, upload a picture of the product next to a ruler or a dollar bill (or similar) to help customers gauge the size of an item. Even though you will list measurements in the listing details, a visual of the size helps.
• Videos:  While not required, a video can set your product apart from your competition. Show the product in use and at all angles.
• Listing details: List the title of the product, who made it, when it was made, whether it’s a physical or digital product, a detailed description, materials used and tags. Here, you can also add a section to group similar products together.
• Inventory and pricing:  What is the price of your item? Make sure to factor in the cost of materials, labor, shipping cost (if offering free shipping, build it into your product price) and shipping materials. If you follow best manufacturing processes, this is where you also include a stock keeping unit (SKU).
• Product variations:  Does your product have multiple sizes or colors? List them here.
• Personalization: If you offer personalization on your products, select “on.” Otherwise, keep it “off.”
• Shipping: You can have Etsy calculate your shipping costs for you based on your origin ZIP code. Input your processing time, where you are willing to ship, shipping services offered, whether you include free domestic or international shipping and whether you want to build a handling fee into the shipping price. Item weight and size go here too.

You can preview each listing before you save it. Once you’ve added all of your listings, select “save and continue.”

5. Input Your Payment Settings

Etsy needs to know your tax filing status, so the first question it asks under the payment settings is whether you’re an individual or sole proprietorship or a registered legal entity. If you select “individual or sole proprietorship,” provide your country, full name, date of birth, address, phone number and last four digits of your Social Security number.

Incorporated businesses will enter the name of the legal entity, legal business address, state, business registration number and employer identification number (EIN). Additionally, Etsy needs a primary contact for the business, so it asks who the shop owner is. You’ll provide the full name, address, date of birth and the last four digits of their Social Security number.

After completing this section, your next section is the country where your bank is located. From there, input your routing number and checking or savings account number that you want your Etsy sales to go into.

6. Enter Your Credit Card Details

You need a credit card to pay for your Etsy fees. Input your credit card number, card code verification (CCV), expiration date and full name on the card. For peace of mind, sign up for auto-billing and Etsy will automatically bill your card on the first of the month or when you pass your fee threshold. Otherwise, you can pay any time from the first to the 15th of the month.

There are three main fees you’ll encounter as an Etsy seller:

• Listing fees
• Transaction fees
• Payment processing fees (if using Etsy Payments)

7. Open Your Shop

After you’ve entered your credit card details, the “open your shop” button will turn black and you can click on it. Congratulations—your shop is open. Now you can share your shop with your friends, family and followers.

Your shop URL comes in two different formats:

• https://www.etsy.com/shop/nameofyourshop
• https://nameofyourshop.etsy.com

8. Update Your Bio

By adding a brief bio and photo, you can show potential customers the artisan behind the shop. This is a place where sellers prefer to share their inspiration for what they do. For example, if you start your shop because you are raising money for a cause or to help finance a journey, such as In vitro fertilization (IVF) or adoption, say so.

9. Set Up Your Shop Policies

This is one of the most critical steps in becoming an Etsy seller. You want to anticipate any questions a buyer might have to help eliminate any back-and-forth questions via chat. A policy section will also help in the event of any disputes.

Essential elements of your shop policies include:

• Processing time
• Shipping policies, such as if you only ship via United States Postal Service (USPS) Priority to take advantage of free insurance
• Payment options
• Returns and exchanges policy

Once you have established your Etsy store, you’ll want to home in on solid business practices that help you sell more products. As with any business, selling on Etsy is difficult and requires a game plan that you execute.

Set Realistic Goals

When you are starting out on Etsy, understand that you need to establish yourself. You won’t have a lot of traffic to start with, and consumers will be weary of buying from someone who doesn’t have a lot of sales recorded. Your initial goals should be tied to making the first sales and expanding.

Announce Your Store

Go on your social media and announce your store. Drive all the traffic that you can to the store. This may start with friends and family, and you may take sales you would otherwise have done in person, but this helps to get you the much-needed metrics of sales under your belt, showing other consumers that you are a good Etsy seller.

Deliver Excellent Products and Services

You want your buyers to leave you good feedback. This means that you should be prompt in responding to messages. Send items out as quickly as possible. Do everything that you can to make the transaction simple. When other consumers see positive feedback, they’ll be more likely to trust your shop and buy from you—even if you don’t have a lot of sales. Make each sale count.

Make Sure Keywords and Tags Are Optimized

You want consumers to find you, not just from your social media posts. You can do this by making sure that your listings have optimized descriptions and tags. Use keywords that describe your items so that people can find you on Google or in the Etsy search bar.

Upgrade Photos Where You Can

Make sure all photos are clear and show the product from various angles. You want high-quality photos that are optimized for the website. Take images farther from the product than you think you need to, and then crop the photo with the Etsy tool. Don’t use square crops; instead, make rectangular crops that are more visually appealing and use an aspect ratio of 4:3.

Add More Products Regularly

Consumers like choices, and they appreciate seeing new products on sale in your store. Think about incorporating seasonal items into your store that fit your theme. Share new products on social media to start the buzz about the new items.

You’ve heard it before—Etsy is the perfect place for makers to sell handmade goods. It’s where people go to find unique, one-of-a-kind items that they can’t find in other places. Luckily, it takes very little time to set up an Etsy shop, and it has a low barrier to entry. However, opening the shop is only half of the story; you want to make sure to manage it properly to ensure its success. While it’s free to create an account, you just pay a small fee for listing your item and a fee when it sells.

Forbes Advisor small business expert Kimberlee Leonard contributed to this article.

Does Etsy report my shop income to the IRS?

Yes, Etsy is required by law to report your income to the IRS if you have more than $20,000 in sales and more than 200 transactions. You will receive a 1099-K to file your taxes.

How much are the seller fees on Etsy?

There are three types of seller fees that you will encounter when using Etsy to sell your products: listing fees, transaction fees and payment processing fees (if you are using Etsy Payments to process your payments). Listing fees are low at 20 cents per listing and transaction fees are 6.5% of each sale, which is both the item’s price and the cost to ship it. The Etsy Payments processing fee is 3% of each sale plus 25 cents.

Can I buy shipping labels through Etsy?

By purchasing your shipping labels through Etsy, you can save up to 30% compared to USPS retail rates. You can also use a provider, such as Pirate Ship or Shippo.

How do I choose a product to sell?

Even if you’re not a designer, there are tons of ways to make and sell products online. You can hire your own designer, install a dropshipping application or take up a new crafting skill.

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How to Open an Etsy Shop in 8 Steps: Etsy Fees and More

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Etsy is an online marketplace for handmade goods and artwork. Opening an Etsy shop is free and relatively easy, and it can provide a home for your products — however niche — without having to build your own e-commerce website .

Here’s how to start an Etsy shop in eight steps, plus information on Etsy seller fees and tips for success on the platform.

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1. Create an Etsy account

You can set up an account with Etsy by visiting Etsy.com/Sell, then selecting “Get Started.” You can create an account with your email address or an existing Google, Facebook or Apple account.

If you’ve shopped on Etsy before and have an existing account, you can log in with your credentials and then select "Open Your Etsy Shop" to start creating your own store.

2. Set your shop preferences

Next, you’ll be prompted to share some information about your business, like how long you’ve been selling goods. You have the option to skip these questions if you’d prefer not to answer.

Then, you’ll be directed to the "shop preferences" screen where you'll designate the basic settings for your store — your default language, the country where you’re based and what currency you plan to use.

If you list products using a different currency than the one in your Etsy Payments account, you’ll have to pay a 2.5% currency conversion fee on each sale.

3. Name your Etsy shop

Here’s where you can start to get creative: coming up with your Etsy shop name. Your store name can be anything you’d like, as long as it falls within Etsy’s guidelines:

Four to 20 characters long.

No spaces or special characters.

Not a name that’s already in use by another Etsy seller.

No trademark infringements.

No profanities.

You can change your shop name up to five times. After that, you can still request a name change, but it’ll have to be reviewed and approved by Etsy Support.

If you try to enter a name that's already in use, Etsy will suggest some similar names that are available:

To get the ball rolling, consider the following name suggestions:

Try suggestive, descriptive names: You can use words or phrases that evoke the feeling of your brand or describe what you're selling. 

Try abstract names: Abstract names can set your store apart and make it easier for customers to find your store when searching online. 

Use your name: Your own name can be a quick and simple option — and allows you to easily change or adapt the products you sell. Consider adding a modifier like "Studio," "Inc," or "Workshop." 

If you think you might eventually expand your Etsy shop into a larger e-commerce business , do some additional research to ensure that you can acquire things like a business domain name or DBA (doing business as) that match your shop's name.

4. Add items to your shop

Listing physical and digital items (think printable stationery, patterns, stickers, gift tags) in your Etsy shop involves separate processes. We’ll show you the basics of how to list a tangible item; you can consult Etsy’s guide if you’re listing a digital item .

Add photos and videos

You can include up to 10 product photos per item. Etsy recommends shooting in natural light, showing items in use and including other objects to show scale.

You can also include one video lasting five to 15 seconds.

Complete your listing details

Give your item a title that describes the product in as much detail as possible, but keep in mind there’s a 140-character limit. You’ll also have the opportunity to provide an in-depth description, a bulleted overview of the product, and additional details like the product’s category and type.

As you start to fill in product details, Etsy will prompt you for additional information specific to that type of product — like whether a piece of art comes framed, whether it’s designed for a certain holiday or occasion, or whether it belongs in a particular room in the home.

Pay attention to the section called "renewal options." If you select "Automatic," your listing will automatically renew after it expires every four months. Each time the listing renews, you'll be charged a 20-cent fee.

If someone else helps you produce your goods, you may need to add information about them too. Etsy defines these “production partners” as any person who’s not part of your shop’s staff or any outside company that helps produce your goods. This might mean they have some skills or equipment you don’t have or that you’re contracting out some work in order to keep up with orders.

Finally, take advantage of all 13 tags available per item. Shoppers find your item by searching for keywords in the search bar, so work backward and think about what a customer might type into search to discover your item and use those words as your tags.

Complete your inventory and pricing

In this section, you'll enter your product’s price, sales tax (if applicable), quantity (if you have more than one in stock) and SKU number (if you have one).

You can also add variations — like sizes, materials and colors — and link photos to those variations.

Don’t short-sell yourself; price your products so that you can cover your material, labor and production costs, plus Etsy’s fees. But keep in mind that one of Etsy’s major draws is the prospect of buying unique items at prices that won’t break the bank. Try to strike a balance between the two.

Set your shipping prices

Here, you’ll include all the details needed for shipping, like the shipping services you use, costs, country of origin, processing time, and item weight and size.

You can opt for Etsy to calculate your shipping prices for you. In this case, you'll be required to fill in item weight and size when packed. Then, based on that information, you'll be able to preview the buyer’s shipping price.

If you ship to the European Union, you may need to enter a tariff number for your items. A tariff number is a code that specifies the product type.

Create your return and exchange policy

Etsy offers sellers a templated returns and exchanges policy. This policy allows buyers to return or exchange items within 30 days of receiving them, but requires buyers to cover return shipping costs. If you prefer, you can create your own custom return policy, including policies for specific items or types of items.

Publish your listing

You can preview your listing to see how it’ll look to customers before it goes live.

5. Choose your payment preferences

Once you've added an item to your store, you'll need to set up your Etsy payment preferences.

Etsy generally requires sellers to use Etsy Payments, which allows you to accept credit cards, debit cards, Apple and Google Pay, Etsy gift cards and store credit, Klarna and more.

Etsy Payments charges a payment processing fee of 3% plus 25 cents per transaction in the U.S.

6. Set up billing

You’ll need a credit or debit card on file so that Etsy can charge you for selling fees. This cannot be a non-reloadable prepaid debit card.

If you're a U.S. seller, you have the option to enroll in auto-billing, in which case Etsy will automatically charge your credit card on file for the selling fees you incur. Etsy will either charge you at the time that your last month’s statement is due or when you cross your fee threshold — either $25 in fees if you’re a new seller, or the highest of your last three monthly statements.

Even if you're starting an Etsy shop as a side hustle, strive to keep your business and personal finances separate. The easiest way to adopt this best practice is to open a business checking account dedicated to your Etsy store’s revenue and expenses.

Etsy fees for sellers

Like most e-commerce website builders , Etsy charges its merchants fees associated with listing and selling products. Although joining and starting an Etsy shop is free — unless you opt for a paid subscription plan — you'll need to pay listing and transaction fees for each item you sell.

If you're using Etsy Payments, these fees will be deducted automatically from your sales funds. If you still owe additional fees at the end of the month, Etsy will automatically charge the credit card you have on file, or you'll have to make payments yourself.

Here are the fees Etsy charges.

Etsy listing fees

Etsy charges 20 cents per listing at the time each item is listed.

You have to pay this Etsy fee for each product, regardless of whether or not the product sells. Listings expire after four months; if you want to keep them active for an additional four months, you’ll have to pay the fee again.

Etsy transaction fees

Etsy charges 6.5% of the total order amount, including shipping and gift wrapping costs.

Etsy payment processing fees

Etsy charges 3% + $0.25 per transaction in payment processing fees .

Additional Etsy seller fees

Etsy may also charge other fees, including:

Shipping label fees : If you ship with FedEx, USPS, Canada Post or several other carriers, you can buy and print your shipping labels directly through Etsy. Shipping label fees vary for each purchase.

Square fees : If you sell items from your Etsy store in person using Square POS and don’t sync them with your Etsy shop inventory, Etsy will charge a 20-cent fee. 

Etsy ads : Fees vary, but you can set your daily maximum spend.

Offsite ads : You’ll be charged 15% or 12% of any order made as a result of an offsite ad, depending on how much revenue your shop generated the previous year, up to $100.

7. Open your Etsy shop

Once you click "Open Your Shop," your store will be live. Etsy shoppers will be able to see and purchase your listings.

The URL for your shop will be in one of two formats:

https://www.etsy.com/shop/yourshopname.

https://yourshopname.etsy.com.

8. Customize your shop

Now that you've actually opened your Etsy shop, it's time to start selling online. Just like a brick-and-mortar store, your digital store should be easy to find, well curated, intuitively organized and regularly updated.

Here are a few sections you can fill out to ensure that your Etsy shop opens (and runs) successfully:

Add a personal bio and photo

Your public profile is how visitors to the site can learn more about you, both as a business owner and as a person outside of your work.

You can add four different images to customize your Etsy shop:

A shop banner, which appears at the top of your shop on desktop and mobile.

An order receipt banner, which shows up at the top of customers’ receipts.

A shop icon, which is a small image that conveys your shop’s brand.

A shop owner photo, which is a photo of you that appears in your Etsy Conversations threads.

Rearrange your items

Feel free to move your items around on the page. You can also "feature" up to four items, which will show up high on your shop’s homepage.

Add sections

Group your items into up to 20 categories so that buyers can more easily sift through your products. Sections will appear on the left side of your homepage and include the number of products within each category.

Add your shop’s "about" section

Just like your personal "about" section, your store deserves its own bio, too. You have 5,000 characters to tell customers your business’s origin story. Keep in mind that Etsy (and customers) value transparency and openness, so don’t worry too much about writing traditional marketing copy — just be genuine.

You can also provide photos or a video of your studio space or creative process and add links to your store’s social media profiles.

And you have to list anyone you employ to help you make and sell products.

Add a shop announcement

This text appears on your shop’s homepage, under your listings. It should broadly summarize what your shop is about and include any time-sensitive information, like whether you’re on leave or vacation and when you’ll return.

A version of this article initially appeared on Fundera, a subsidiary of NerdWallet.

While it's free to create your Etsy shop, Etsy charges 20 cents per listing and 6.5% per transaction for U.S. sellers. You'll also pay 3% plus 25 cents per transaction in payment processing fees.

You’ll most likely have to process your customers’ online payments through Etsy Payments. Customers can use credit or debit cards, Apple or Google Pay, Klarna, Etsy gift cards, store credit and more. Etsy Payments takes a payment processing fee of 3% plus 25 cents per transaction in addition to Etsy’s transaction fee of 6.5%.

Sellers are responsible for shipping sold items to buyers. If you're using a shipping or fulfillment service, the seller is still ultimately responsible for getting the items to the buyer. However, you can pass the cost of shipping on to your customers.

You can choose to receive deposits daily, weekly, biweekly or monthly, as long as you don’t owe more in Etsy fees than you’ve made in sales.

Small Business Trends

How to start an etsy shop.

Since its launch in 2005, Etsy has opened doors for millions of entrepreneurs to launch their own handmade businesses. The online platform allows any small business owner to easily open their own ecommerce store and reach customers around the world. In fact, the platform boasts over 60 million active buyers according to Etsy. So it’s one of the top destinations for online shoppers — especially those interested in unique or one-of-a-kind items.

How to Start an Etsy Shop in 14 Steps

1. set up an etsy account.

Before learning how to start an Etsy shop, you need a basic account. Even those who shop on Etsy must have one. So it’s possible you’ve already covered this step. If not, just sign up with your email address and password.

2. Choose a Shop Name

Once you have an account, click “Open Your Etsy Shop” to start adding shop details. Then begin to set up your shop preferences.

3. Create Shop Settings

Before you officially open your Etsy shop, you need to select a few basic settings. These include things like your language, currency, and location. Etsy will walk you through the steps. And each option is pretty straightforward. So simply choose the option that is most applicable to your business.

4. Load Products to Your Shop

5. establish prices.

However, don’t feel pressured to have the lowest price. Stick to what you consider a sufficient profit margin. It’s more important to set your inventory apart in other ways, like through quality materials or customization options.

6. Select Payment and Billing Settings

Etsy Payments make it easy for people to pay with a credit card or other options. Etsy Payments is the only way to accept Etsy gift cards as a payment method.

7. Customize and Open your Shop

8. optimize for etsy seo, 9. engage with your customers.

Building a strong relationship with customers is key to the success of your Etsy shop. Engagement not only fosters trust but also encourages repeat business.

10. Utilize Social Media for Promotion

11. explore etsy advertising and promotions, 12. continuously monitor and adapt your strategy, 13. expand your product range, 14. network with other etsy sellers, fees for etsy sellers, listing fee, transaction fee.

Each time you sell a product, you’ll also need to pay a transaction fee. Etsy takes 5 percent from the sale price of each item. This includes the shipping price. You don’t need to worry about fees for products that don’t end up selling.

Payment Processing Fees

How to manage your etsy shop.

Once you’ve learned the basics of how to start an Etsy shop, the work isn’t over. you have to constantly update and improve your Etsy shop if you want it to be successful. Here’s a look at the ongoing tasks that are required as you maintain your online store.

Updating Your Listing

Adding product photos.

You get up to ten images. So you can also add photos that show the scale of your item or showcase how it looks in use. For example, when photographing a ring, you might include one photo of it on your hand and another of it next to a coin. If your item includes different variations, like color options, include at least one photo that shows the options.

Following Etsy Policies

Organizing your etsy store, getting paid from etsy.

Etsy allows sellers to collect payments through Etsy Payments and/or PayPal. Customers can even pay you via money order. With Etsy Payments, you connect your bank account and get paid automatically through direct deposit. With PayPal, you connect your PayPal account and collect sales automatically through that. Within your Shop Manager dashboard, click Finances and then Payment Settings to control these features. Etsy Payments is not available in every country. So PayPal is necessary for some sellers.

Marketing Your Etsy Business

Do etsy seo.

Don’t get too cutesy with your listing names. Be straight forward in the name but do allow your creativity to also show through in the description. For example, if you sell handmade ceramic mugs, your listing should probably include something basic like “ceramic mug.” If you use an odd term like “pottery chalice”, searchers may not find your mugs.

Use Social Media

Get traffic to your etsy shop.

A popular way of bringing traffic to an Etsy shop is through an email list. Sign up with an email marketing provider like Mailchimp or Constant Contact and let customers sign up on your website or social media accounts. You can also start your own blog to give customers a behind the scenes look at your business and include relevant search terms so those who are looking for shops like yours on Google will be more likely to come across your brand.

10 Tips for Selling on Etsy

1. establish a unique niche.

Find what sets your products apart. Today Etsy has 3.1 million active sellers. With this much competition, you need to find something to stand out. You don’t need to invent something totally new. But you should have some idea of how to position your products against others. For example, you might use higher quality materials or include more colorful options. Your niche should be evident to anyone who looks at your shop. You can include multiple products, but they should all fit into a category that is clear to your customers.

2. Brand Your Shop

3. think like a customer.

If you are not sure what is popular or currently selling, check the Most Popular section on Etsy. It’s sure to trigger plenty of ideas.

4. Take Eye-Catching Photos

5. be consistent on pricing.

Check out the competition — see what other shops are selling similar products for. But don’t sell yourself short. Etsy shoppers aren’t as price-conscious as those on Amazon or other marketplace sites. If your products are a bit more expensive than others, you can always make up for it with quality materials or exceptional customer service.

6. Answer Obvious Questions in Your Descriptions

7. create honest policies.

It’s also a good idea to offer some opportunities for refunds or exchanges. Just outline in what situations you’ll accept these. For example, you might require proof that an item arrived damaged or never got to its destination. Or you could offer refunds for anyone who contacts you within a specific amount of time. Just be sure to provide clear information and then stay consistent.

8. Respond to Customers Fast

9. create processes for managing inventory and shipping.

You also need supplies to ship your inventory to customers. Find some wholesale boxes or other packages that fit the size of your products. And then invest in some supplementary supplies like box filler and printable shipping labels. Keep track of these items as you do with your shop inventory so you can invest in new supplies as needed. You can also check out these must-haves when shipping products from home .

10. Ask for Reviews

How Much Does it Cost to Start an Etsy Shop?

It costs nothing to sign up for Etsy and create your shop. Once you start listing items, you’ll pay a $0.20 listing fee for each one. Then you’ll pay 3 percent for each item sold, along with another 3% plus $0.25 for items sold using Etsy Payments. Etsy sellers should work these fees into their prices to cover the costs and still turn a profit.

What are Some Etsy Shop Examples?

Is it worth it to sell on etsy.

Some sellers view Etsy as an additional marketing channel to increase their existing customer base and sell products on their own websites, as well. This may be best for those who have already built a significant following on social networking sites or their email list. So while we think it useful to learn how to start an Etsy shop, it doesn’t need to be your sole marketing channel.

Do You Need a License to Sell on Etsy?

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How to Start an Etsy Shop: Your Ultimate, No-Stress Guide to Selling on Etsy

Will your business idea succeed? Take our quiz - completely confidential and free!

You’re creative. And you love to craft!

Not to mention, you’ve gotten pretty darn good at it.

Or, you have an amazing eye for vintage finds, but your closets are overflowing.

“You should start an Etsy shop!” your friends say. And you’ve secretly shared that very same thought.

Etsy is a booming online marketplace full of amazing handmade items and vintage goods. The platform brought in revenues of $2.47 billion, an 11.07% increase year-over-year. Who wouldn’t want to be a part of such a successful venture?

Here are the important stats you should know about Etsy shops:

• More than 2.1 million sellers offer over 60 million items on Etsy.
• 86% of Etsy sellers are women, and nearly 95% of Etsy sellers run their shops from their homes
• There are40+ Etsy product categories on the platform.

But you haven’t started that Etsy shop yet. And I’m guessing it’s because getting started can seem so daunting.

People often ask:

• How much does it cost to set up an Etsy shop?
• Do you have to have a business license to sell on Etsy?
• How do I sell successfully on Etsy?
• Is it worth selling on Etsy?

Don’t worry – you’ve got this! And we’re here to help.

Over the past fifteen years, crowdspring has helped thousands of Etsy businesses get started. We’ve developed many insights and tips on starting and running an Etsy business. And I have multiple years of experience designing and developing clothing and decor items and teaching people how to create crafts that can be sold on Etsy.

We’ve created a comprehensive guide to help de-mystify and de-stress the process of starting an Etsy shop.

In the sections below, we’ll discuss branding basics, how to create listings, product pricing, financial and legal details – even marketing and long-term strategy – everything you need to know to succeed as an Etsy entrepreneur.

How to Start an Etsy Shop:

• Set Up Your Account
• Brand Your Etsy Shop
• Crunch the Numbers
• Create Your Product Listings
• Fill in the Business Blanks
• Make a Stocking Strategy
• Plan for Shipping
• Spread the Word
• Build a Web Presence Outside of Etsy

1. Set up your account

Okay, let’s take a deep breath and dive right in.

We’re marching straight to Etsy and opening up that shop. But there’s no need for panic.

Setting up the shop is super simple. And once you get past this mental barrier, you’ll be free to build your Etsy business.

So, shall we?

The very first step is to register your account.

Once you’re registered, you can start setting up your shop. You’ll be asked to specify a few basic preferences – like language and currency.

See? I told you this was easy.

Then they’ll ask you to do the scariest step of setting up your shop – choosing a name.

But I’m here to tell you – don’t sweat your shop name just yet.

You’re right that you should take some time to think of a great name (more on that in the next section – Section 2: Brand Your Etsy Shop). But the name you enter here can change until you  open your shop . So, don’t let having the perfect shop name stop you from completing the rest of the process.

You can even change your shop name once after opening. So… breathe . You’re okay.

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Once you’ve entered a name, you can stock your shop, and set up payment and billing. Etsy does a great job of guiding you through the process – just follow along, and you’ll be fine.

While Etsy walks you through the mechanics of posting a listing, we’ll cover how to create awesome listings that sell in Section 4: Create Your Product Listings.

Before opening your shop, fill in your bio and add a personal photo. Writing your bio is a great way to start thinking about who you are, why you’re opening a shop, and what you’re passionate about. All of these things will be incredibly helpful to remember when you start thinking about the next step – branding.

We suggest you read Section 2: Brand Your Etsy Shop and think about your branding before deciding on your final shop name. So, without any further ado – let’s talk about branding…

Also, remember that most states require you to register your business if the trade name under which you operate your business differs from your business’s legal name.

For example, if your registered company as an LLC and is named Three Brothers, LLC, you cannot operate that business lawfully in most states if you’re selling products under the trade name Three Tigers. That’s because the registered name, and your trade name, are different.

Fortunately, this is not a difficult problem to overcome. You can simply register your actual trade name with your state (and or local government) by filing a “doing business as” (DBA) certificate. DBAs are also commonly called “assumed name,” “fictitious business name,” or “trade name.” Here’s a terrific resource that explains what a DBA is, the DBA state requirements, and how to file a DBA  for your business in all 50 states and U.S. territories.

2. Brand your Etsy shop

That’s because no other shop has you at the helm and sells your specific line of goods.

Your brand and  visual brand identity should also be unique.

You may think, “I’m just opening an Etsy shop. It’s a side hustle. I don’t need to worry about  branding! ”

But your brand identity is how your customers and potential customers perceive your shop. That means you have a brand whether you choose to or not. And you’ll be better served by making conscious branding choices instead of leaving it to chance .

Your brand identity’s importance cannot be understated – especially in the authenticity-driven world of Etsy.

Shoppers seek out Etsy for the personal connection they can forge with the shopkeepers there. Consumers can buy most necessities at Target, Amazon, or their local grocery store. But Etsy is known for its special, one-of-a-kind goods with authentic backstories.

So, if you want to make sales, you must create a brand identity that communicates the essence of what your shop is about and builds confidence in your visitors.

So, before you post your first listing, ask yourself these important questions:

• What makes my merchandise unique?
• Who will want to buy my products?
• What can customers get from my Etsy shop that they can’t get anywhere else?
• What are my brand values?
• What is the most important part of my customer’s experience?
• What identity/personality do I want my Etsy shop to project?

Your answers to these questions (and others like them) will build the core of your shop’s brand.  Your business name , your company logo , your shop banner or cover photo, and the items you list should all be informed by these core brand ideas.

Etsy Branding Basics

Your shop has three major branded elements that you should be aware of:

• your shop name
• your avatar (usually a logo)
• the shop banner or cover photo

These are the primary tools you can use to communicate your brand in your Etsy shop. So, you’ll want to give them some real thought.

All business names should be brand-specific, memorable, and unique – this helps to set you apart from your competitors. But Etsy adds a few additional requirements for shop names. Shop names can’t include spaces, punctuation, or more than 20 characters. And each shop must have a unique name.

Luckily, these requirements will work for you! They’ll force you to think of a short, interesting name. Those are generally the easiest to remember.

Since punctuation and spaces are forbidden, use capitalization to ensure your name is understood. For example, “MyEtsyShop” is easier to read than “Myetsyshop.”

Your logo should go in the shop avatar (your personal photo should already be featured under your shop owner profile).

Like your shop name, your business brand should directly inform your logo.

Whether your brand is high-end or casual will determine your choice of imagery and fonts. If your hand-made items are complex, consider a complex logo. Likewise, if your style is simple and minimalist, a simple and minimalist logo would be the better choice. You get the idea.

In addition to ensuring your logo represents your brand, remember that Etsy provides a square field for your avatar. So, avoid long horizontal designs and choose a logo that will fit well inside a square.

For a great example, check out ClaraLoo’s logo above.  It has a simple, child-like, rustic charm perfectly reflects her playful, homey nursery decor. It’s also proportioned ideally to fit in the square avatar field.

Need help creating your best logo? Let crowdspring help! Our creatives are standing by to design a unique and memorable, custom-branded logo for your Etsy shop .

Shop Banner or Cover Photo:

The top of your Etsy shop is valuable real estate. This is where your banner or cover photo will go. This area sets the visual tone for your shop. And when used effectively, it will memorably differentiate your shop from your competitors.

Etsy allows you to select a small banner (760px X 100px) or a larger cover photo (3360px X 840px) to fill that space.

Functionally, a cover photo has a distinct advantage over a small banner. Cover photos (as shown above) are visible when your shop is viewed by computer and smartphone. Small banners only appear when your shop is viewed on a computer. For that reason, we recommend choosing a cover photo over a banner.

Having a well-designed banner or cover photo is important. It makes your shop more attractive, yes. But, more importantly, it creates a professional impression and makes your shop seem trustworthy and credible.

Top Etsy shop ModParty uses its cover photo to advertise its shop name and show off some truly excellent product photos.

A final word on branding…

Your shop name, avatar, and banner or cover photo are specific branding tools. But that’s not where branding ends in your Etsy shop.

Kevin Jones of Debt Free Happens (an Etsy entrepreneur, personal finance expert, and blogger)  explains :

If you sell cute stickers it may not make sense to also sell customized beer mugs in the same shop. Both are great products but you are trying to create an environment that the buyer feels comfortable in.

Every item you post should reinforce your brand. Customers should feel that all of your listings belong in your shop. And every listing description you write should continue and underscore that feeling. This makes your customers feel like they understand you and what your shop is about. And that makes it feel like a safe, pleasant place to be.

Your bio and personal photo are also part of your brand. This personal information (and the voice you use to communicate) creates a deeper connection with your customers.

So, be thoughtful when deciding what items to list and what info to include in your bio. Use a consistent voice when writing your listing descriptions and any other customer-facing copy like your bio and store policies.

You can learn more about the nuts and bolts of establishing and maintaining a consistent brand identity in  Grow Your Small Business with Consistent Branding .

3. Crunch the numbers

When starting any new business, it’s important to understand “the numbers.” You would typically discuss this in your business plan .

But you don’t need to write a formal business plan if you’re not seeking outside funding. You just need to assess what numbers are important when starting an Etsy business.

Etsy entrepreneurs will want to track sales and profits, but you’ll also need to monitor your start-up costs. You should build these initial costs into your pricing to repay your investment.

Luckily, start-up costs for Etsy businesses are minimal compared to virtually any other type of business.

Start-up costs for an Etsy shop are likely to include the following:

• your brand design (logo and banner/cover photo design)
• any license or permit fees (check with the SBA )
• basic infrastructural costs like internet service and Etsy listing fees (only $0.20 per listing!)
• any crafting tools you need to acquire to make products
• materials for your first products

Running smart calculations to determine how much it will truly cost to get your shop up and running will allow you to plan and avoid expensive surprises.

And cosndier your total addressable market (TAM) to help you understand the opportunity better.

Setting your prices

Setting the right prices can make or break your shop.

To create an effective pricing strategy, you must start by knowing how much it costs to produce or acquire your products.

This includes material costs and the value of your time. And, you’ve got to bake the cost of running your business (and some profit!) into your prices as well. Otherwise, it will be difficult to sustain your business over time.

Taylor Combs, a writer and editor for Etsy’s Seller Handbook explains ;

First and foremost, your price should account for the cost of the materials that went into making the item and your time. If you’re unsure, try searching for similar items on Etsy to see what the average price point is.

Once you’ve done the math, it’s time to consider the less tangible aspects – competitor pricing and perceived value.

Your potential customers are shopping for more than just your goods. They’re shopping with your competitors, too.

And they know how much those items cost. Consciously or not, they gather data about what they think a product like yours should cost.

That means you must also be aware of what your competitors are charging.

You might feel your products are worth more or want to charge less than your competitors. And that’s okay.

But, if you’re completely unaware of what your competitors charge, you may miss the mark – either costing you profit if you charge too little or sales if you charge too much.

Perceived value is the amount that a customer thinks a product is worth.  And your competitor’s prices are a part of that perception. But not the whole picture.

How your products look plays a role. A cheaply-made necklace that looks fancy may have a higher perceived value than a beautifully made simple necklace. Most customers have no idea how much time, money, or effort goes into making a particular item.

Your branding can influence how your product is perceived, as well.

A classy logo and high-end brand positioning will produce a higher perceived value than an amateur logo and shop banner.

So, remember to consider your brand and your competitor’s pricing when creating your pricing strategy.

For more pricing information, check out this guide from the helpful folks at Etsy.

4. Create your product listings

Listings and art by Antoaneta Ivanova of PebbleArtDream

Your listings are the lifeblood of your Etsy shop.

Creating compelling product listings can help your sales skyrocket – while lackluster listings will stagnate.

So, what does a compelling Etsy listing look like?

Well, the best and the worst Etsy listings all include the same three components – product titles, descriptions, and photographs. It’s how you execute them that makes the difference.

Master these three components; you’ll have rock-star listings that leap into shopper’s carts.

Listing titles

Your listing titles identify your products to your potential customers.

Etsy’s Taylor Combs advises :

Think like a shopper and use words and phrases that buyers might use when searching for your item.

It helps to be descriptive. You could name a listing “Wool Blanket.” Or you could name that same listing “Hand-Braided 100% Merino Wool Blanket.”

Providing more information increases the likelihood that your listing will be found. For instance, shoppers searching for “merino wool blankets”  and “hand-braided blankets” are both likely to find the second listing.

The more descriptive your listing title is, the more the customer can learn about your product at a glance. You can showcase what makes your product special and why customers can’t live without it before they’ve even clicked through.

Use evocative, descriptive words to highlight your products’ best qualities, and your listing titles will shine.

Product photos

Image courtesy of LaurenAstonDesigns

Strong product photography is your best sales tool.

Shopping on the internet involves more uncertainty than shopping in person. In a store, you can handle and examine an item with your own two hands. Customers can’t touch the products they want to purchase on Etsy.

But great product photos help to allay some of that uncertainty. And well-styled photos that showcase the product in a way that resonates with your target audience help shoppers to envision that item in their lives.

Taylor Combs recommends including five photos on every listing.  She suggests that you take the following:

A well lit, clear photo of the item you plan to sell

A photo that shows alternate angles of the product so shoppers can make an informed purchase

A photo showing any unique details of the product. Try to answer any questions a shopper might have about texture, color or the techniques used.

A photo that shows the scale of the item. Styling a photo with other recognizable props or by having volunteer models hold it in their hands can help.

Take as many photos as needed to give your customers a complete understanding of the product. And, of course, show it off to its best advantage.

Take photos with natural light (instead of camera flash) – this makes a difference. Play around to find out what time of day yields the best lighting for you.

And remember that these pictures must appeal to your target customer. So, keep those customers in mind and style the photos accordingly.

But most importantly, ensure your products are the stars of the photos – simplicity is key.

For the full skinny on how to create the best product photos, check out Etsy’s “ Ultimate Guide to Product Photography .” And consider product retouching services if your photos need some professional help.

Product description

Writing an awesome project description is the final step to creating a stellar listing.

This is your opportunity to tell the story of your product. Include all of the unique details that make your item special. If you made the product, talk briefly about your process.

Help your potential customers envision how the product might fit into and improve their lives. People make buying decisions with their hearts more often than their heads. So, paint an appealing picture, and you’ll attract better results than simply listing features.

Finally, take a look at the descriptions your top competitors write. Never plagiarize their carefully written copy. But you may get inspiration on what information to cover or format.

For even more great tips about writing awesome product descriptions, click here .

5. Fill in the business blanks

Starting an Etsy business is a user-friendly way to start a business.

But, it is a business.

This means you must follow your state’s legal requirements for any other business.

First, you must choose a legal structure for your new Etsy business.

Hire an expert to form your company and save time. Our trusted partners can help: Northwest ($39 + state fee) or Bizee ($199 + state fee) . We recommend Northwest. After evaluating the leading registration companies, Northwest stands out as our top choice due to its competitive pricing, exceptional customer support, and commitment to privacy. Pay just $39 + state fees and you'll get a free year of registered agent service, articles of organization, privacy, and client support from local experts.

After you choose your business structure, you’ll need to file any necessary paperwork. The U.S. Small Business Administration says a license or permit is necessary for every business type.

Their website has all the info you need to find out what sort of license or permit you’ll need for your Etsy shop in your state.

For more details about legal considerations for your Etsy shop, read this article from legal compliance experts Wolters Kluwer.

And be sure to get familiar with Etsy’s legal policy for sellers.

Taking care of these admittedly unexciting but essential chores will ensure you don’t get bitten in the backside later.

6. Make a stocking strategy

Opening a shop is a great first step.

But, if you hope to run a successful business, you must plan for what comes after you open.

Maintaining your shop properly is key to your success. And well-stocked shops perform best.

So, Etsy hobbyists may get away with stocking their shops as they find items or when they feel like it, but, Etsy entrepreneurs need to be more proactive. Plan now to ensure you’re not overwhelmed later.

Etsy allows three types of shops: hand-made goods, vintage items, and crafting supplies.  Each of these three categories will have different requirements for maintaining your stock.

Crafting supplies

Depending on how prolific a crafter you are, you may already have a substantial stock of crafting supplies if that’s the case – good on you! You’re set for a while.

If you’re not already sitting on a large stockpile of craft supplies you can sell, you may want to develop buying relationships with wholesalers to increase your profit margin on the items you sell.

Or, if you want to sell a combination of your products and third-party products, there is an option to dropship on Etsy .

But you will need to jump through a few minor hoops before you can do so. You’ll need an EIN, a tax license, and a registered business name. Check out this article from Chron to learn all the details if wholesale purchasing seems the right fit for you.

Vintage items

If you’ve chosen to sell vintage goods, you probably already have a collection of vintage items waiting to be sold. And that’s great – but what happens after this stock runs out?

That’s right! Shopping! And, while that may sound fun now, shopping for stock can be hard work. And it means that you need cash upfront to invest.

You may benefit from setting a regular shopping schedule to keep you on track. You should acquire new items consistently – an empty shop is bad for business. And finding quality vintage items can be hit and miss. Shopping regularly will ensure you don’t find yourself in a merchandise drought.

Planning a regular shopping schedule also allows you to plan your purchase expenses over time, ensuring you can cover the investment.

Hand-made goods

If you plan to make the items you sell, you have a lot to think about.

• Will all of your items be made one-of-a-kind?
• Or will you offer products that you can create in an assembly-line style?
• Will you sell downloadable digital goods (like prints or crafting patterns)?
• Or will you handcraft physical items?
• Will you offer customized items on request?

Remember that one-of-a-kind hand-crafted items may bring you joy to make, but they’ll also be the most challenging to keep stocked. Supplement these more time-intensive items with staple products that are quick and easy to make.

You can also build out your shop with custom listings made on request. Custom listings are great because you know you’ll be paid for the item and don’t have to invest time and effort until the order arrives.

Setting your production goals is a good idea – like making X weekly items to keep your shop well-stocked. What is a realistic production goal for you?

Whatever type of shop you plan to run, don’t leave your success to chance. Planning for how you’ll stay stocked will increase your odds of success.

7. Plan for shipping

Shipping is part and parcel (ha!) of running an Etsy business.

Don’t wait until you’ve made your first sale to determine how you will fulfill the customer’s order. People have come to expect speedy shipping and top-notch communication. So plan to figure out your shipping logistics so you don’t ever keep customers waiting.

Luckily, Etsy knows that shipping is important, and they have a system to help their vendors ship more easily. You can print shipping labels, calculate shipping charges, and track packages from your Etsy shop. You can sign up here .

But, you need to think beyond just the logistics. Etsy shoppers are looking for a personalized shopping experience. And how their item is packaged is an important part of that experience.

Consider including a short personal note. Think about what materials you’ll use to protect the item in transit and create a beautiful unboxing experience.

Will you include coupons or a small gift?

Whatever you choose, be true to yourself and your shop’s brand.

8. Spread the Word

Opening an Etsy shop does not necessarily equate to immediate sales and success. It takes time to build a presence and a customer base. But there are certain steps you can take to help your shop grow faster!

As you start, look to your friends and family to make your first sales.

Online shoppers rely on positive reviews to feel safe about making a purchase. But your brand spanking new Etsy shop has no reviews yet.

So, contact friends and family – they want to support your endeavor. Encourage them to make a purchase and leave a positive, honest review. It also never hurts to ask them to talk up your shop to their friends!

Those reviews and sales will “seed” your shop for future sales.

You may also want to initiate a refer-a-friend campaign . All types of businesses strive for strong word-of-mouth marketing. You can encourage this by providing small printed discount coupons.

Indicate on the coupon that it’s for a friend and is only good for their first purchase. Then place these coupons in all of the packages you ship. And, to sweeten the deal – offer the original customer a discount on their next order if their friend makes a purchase.

SEO stands for search engine optimization. This means setting up your shop and listings to make them easy to find online.

SEO is too big a topic to do justice here. But here are a few tips to get you started…

• Utilize tags in your Etsy listings. Tags allow you to “tag” a listing with certain keywords to make it easier for shoppers to find.
• Use popular keywords in your listing title and product descriptions.
• Use Etsy categories to make your items easier to find.

And, for oodles more information about Etsy Search and SEO, check out these articles .

Social media

As a new, up-and-coming business owner, you’ll also want to take full advantage of the inexpensive and easy exposure that social media marketing offers you. As we  previously explained ,

Social media gives you the ability to easily keep customers up-to-date on new products, store policies or sales. It also enables you to build a social rapport with current customers, while building low-pressure relationships with future buyers.

Maintaining (at a minimum) a Twitter and Facebook presence will help you build an audience of devotees.

Make it easy for visitors to see what your shop is all about by featuring those fabulous photos of your products  in a Facebook album .

Social media is also the perfect platform to help future customers get to know you and your shop.

Customers buy from Etsy instead of a major retailer because they connect to that business’s story. So, use your Facebook and Twitter to share that story – for free!

9. Build a web presence outside of Etsy

You have an Etsy shop. So, a website would be redundant, right?

While you don’t need a website to open an Etsy shop, it’s an excellent tool for growing your business. Here’s why.

A website gives any business more credibility. In our digital culture, people expect businesses to have a website.

As we explained  previously :

A  recent study  shows that 97% of consumers research their purchases online before they buy something.

Now, shoppers aren’t consciously seeking out Etsy vendors with websites, but almost anyone can open an Etsy shop. And if a customer is trying to decide between two similar Etsy shops, and one has a professionally designed website while the other does not…

Well, I know who I’d buy from. And it’s not the shop with no website.

A stand-alone website adds credibility and is another touchpoint for customers to find your goods. It increases the chances of finding customers who don’t shop on Etsy, widening your potential customer pool. If you’re wondering where to begin, you can create a Shopify store as a starting point for your online presence.

A simple, well-executed website is enough to accomplish all of these benefits. Your website doesn’t need e-commerce capabilities—simply link customers directly to your Etsy shop.

Follow these guidelines to get the most from your website:

Start by ensuring that your website design is a clear extension of the brand you’ve established in your Etsy shop. Visitors should be able to recognize that it’s the same business immediately.

Create consistency by…

• Prominently featuring your Etsy shop logo and name
• Using the same brand colors from your logo and Etsy banner on your website
• Sharing all of your product photos on your website with the same listing descriptions
• Match the same authentic writing voice on the website copy that you use in your Etsy shop
• Include an “About” section that shares the story you’ve shared on Etsy
• Link customers to your Etsy store to make purchases

Finally, a strong website design will lend credibility and legitimacy to your business. To learn more about great website design, check out Grow Your Small Business With These 7 Website Design Best Practices and 11 biggest web design trends for 2022 .

You made it!

If you’ve followed all of the advice in this article, you are well on your way to a successful Etsy business.

But you may still have questions. You probably do. And that’s okay.

Etsy is one of the most supportive online communities in the world. You can seek out help from your peers on the Etsy Forums . Etsy even has a deeply informative Seller Handbook with articles covering every topic you need to know about. So, you’re never alone.

You’ve got this. Keep listing and learning – and your Etsy business will thrive before long.

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Key takeaways

• To start an Etsy shop, you'll need to create an account, set up your storefront, add items to your shop and set up payments
• You don't need a business license to sell on Etsy but you do need to be aware of local rules and regulations
• To attract buyers to your shop, make sure you have accurate and engaging product descriptions and well-lit, clear product photography

Not so long ago, if you wanted to sell your handmade or vintage item, you needed to find a way to do so in person. But thanks to the rise of e-commerce, your options have exploded. While you can list products on sites like Amazon and eBay, you might have the most luck getting in front of more than 96 million buyers actively looking for vintage and handmade goods.

Enter: Etsy.

Over 9 million people have leveraged Etsy to sell handmade and vintage goods to people all across the globe. And if you’re considering joining them, you’ll need to figure out how to start an Etsy business. Fortunately, we’ve gathered all the steps you need to take here.

1. Create an Etsy account

You’ll first need to set up an Etsy account. The platform makes this relatively easy: Just head to Etsy and click “Sign In” in the top-left corner (This is the easiest way to get started).

In the sign-in popup that opens, choose “Register” from the top-left corner. You can fill out the form to establish your account or use Google, Facebook or Apple logins.

You’ll get an email from Etsy to confirm your contact info. Follow the steps to get your account set up.

• There are over 9 million active sellers on Etsy ( Etsy key figures )
• There are over 96 million active buyers on Etsy (Etsy key figures)
• Annual gross merchandise sales in 2023 were $13.16 billion (Etsy key figures)
• 86% of Etsy sellers are female entrepreneurs ( Etsy study ) The majority of Etsy shops are sole proprietorships ( Etsy Seller Handbook )
• 7.72 million people are estimated to be repeat buyers, averaging six purchases in 2023 ( Capital One )

2. Set up your storefront

Creating your account is the first step as you learn how to start a small business on Etsy, but you can’t stop there. You also need to establish yourself as an Etsy seller. That means heading to the Seller page while you’re logged into your account and clicking “Get Started.”

You’ll need to answer a few questions to set up your Etsy shop, like where your business is located and which language and currency you want to use. As part of that process, you can also get resources from the company, like selling internationally and branding your shop.

Note that you don’t technically need a business license to sell on Etsy, but local rules still govern you. Check whatever legislation applies in your jurisdiction to find out if you need to get licensed before you can start selling.

While you don’t always need a license, you do need to be ready to choose your shop name. It has to be between 4 and 20 characters with no spaces, special characters or accented letters. (Don’t stress too much here — you can change your shop name later.)

3. Add items to your shop

You’ll need to stock your shop as you continue through the Etsy seller setup process. This can be one of the biggest hurdles as you figure out how to start an Etsy business because you can’t establish your shop without this piece. In other words, if you’re not ready to upload pictures of your products, write descriptions, and decide on pricing, you won’t be able to set up your Etsy shop.

In addition to listing the products themselves, you also need to make some shipping decisions. Fortunately, this is one of the areas where it can be easier to start a business on Etsy than on other sites. Etsy can calculate shipping costs for you and allows you to buy your shipping labels directly through the platform.

For help listing an item, Etsy has a guide .

4. Set up payment and billing details

After you click “Save and Continue” on the “Stock your shop” page, you’ll get taken to a page focused on getting you paid — and paying Etsy.

Here, you’ll need to connect a business bank account so Etsy can pay you, and you’ll need to add a credit or debit card to pay the company.

If you have a U.S.-based bank account, connect it to your Etsy shop through Plaid , which has several tools to keep your data safe. Etsy requires sellers to set up two-factor authentication to further safeguard your info. Once you do that, you’ll be able to get your shop established.

5. Open your Etsy shop

Congrats! Once you reach this step, you’ve officially figured out how to start a small business on Etsy.

At this point, you’ll have the link to your shop to share with friends, family, your social media network and anyone else you want. You can officially start advertising too, whether buying an ad on Facebook or a spot in a local paper.

How to personalize your Etsy shop

While your shop is technically open, meaning you’ve mastered how to start a small business on Etsy, there’s a lot more to explore when it comes to actually running it.

You’ll want to personalize your shop to stand apart from your competition. You can do that through your:

• Shop icon (essentially, your logo on Etsy)
• Welcome message

You can customize those through your Shop Manager . Ideally, you want your icon and banner to accurately reflect your shop and flow well with the imagery you’ve chosen for your product listings.

Apply that personal touch as you interact with customers, too. Stay responsive as people buy your products or message you through your shop. If you consistently provide good customer service, you could be eligible to become an Etsy star seller .

How much does it cost to sell on Etsy?

Before you start a business on Etsy, you want to make sure it’s going to be profitable. As you’re crunching the numbers — from totaling up the cost of materials to budgeting for shipping costs — don’t forget to factor in Etsy’s fees.

The platform charges sellers in three different ways:

• Listing fees. Etsy charges a flat rate of $0.20 per listing. That fee applies whether or not the item sells. This cost can go up if you decide to add options like auto-renewal, which means the item gets automatically relisted on your page after it sells.
• Transaction fees. When one of your products sells, Etsy collects 6.5 percent of the order total (including shipping, gift wrap costs, etc.).
• Payment processing fees. These vary by location , but in the U.S., sellers pay 3 percent plus a $0.25 flat rate per payment that is processed through Etsy.

How to finance your Etsy business

Starting an Etsy shop may include costs like buying materials to make your products and keeping inventory on hand. While some Etsy owners might take these costs out of pocket, you can also finance your Etsy business in a number of ways, including:

Small business loans

Small business loans can be a great way to finance your Etsy business if you have some market experience under your belt. Lenders often want to see that you’ve been in business for a few years and generate a steady flow of income when approving you. You’ll need to provide business bank and financial statements to show that you can pay for the loan. That said, you can find lenders that offer startup financing , lowering the barrier to eligibility.

Crowdfunding

Crowdfunding allows you to raise money for financing your business, usually through an online platform like Kickstarter or Kiva . You can gather financing from a large group of people interested in investing in your business. Depending on the type of crowdfunding you use, you may not pay interest or may not even need to pay the investors back. Types of crowdfunding include:

• Donation crowdfunding raises money through donations that you do not have to repay
• Reward crowdfunding offers individuals a reward like swag or the product you’re creating in exchange for funding
• Debt crowdfunding allows you to borrow money that you will repay with interest, like a business loan offered through a large group of individuals
• Equity crowdfunding gives investors ownership of your business in exchange for financing

Small business grants

Small business grants are a form of funding that your business will not have to repay. You can find small business grants from federal, state or local governments, and some corporations fund their own private grants. The amount of funding varies with the grant, but even a low grant, like $5,000, might be enough to get your Etsy business started.

Because grants provide free access to money, they tend to be competitive. You will need to meet the qualifications outlined for the grant application. You’ll also need to be patient about hearing back from the grant organization since they can take weeks or months to announce the winners.

Small business credit cards

Small business credit cards are an ideal way to finance short-term costs, and many come with rewards like cash back or travel points. They may require strong personal credit like a personal credit score of 670 or higher, though you can find business credit cards for bad credit . Otherwise, credit card companies don’t look as closely at your business’s time in business or financial statements the way a business loan does.

To avoid paying interest, you’ll want to pay the balance in full each month. Doing so will mean that you’ll receive a grace period of at least 21 days from your next statement to the time the credit card payment is due.

Whether or not you make payments in full, your business credit card can help you build positive business credit as long as you make payments on time.

Bottom line

Now you know the steps you need to follow to figure out how to start an Etsy business. Fortunately, the platform makes it relatively easy. Really, the hardest part is getting your product pricing and photos set up so you can load them in as you establish your shop. As you figure out that pricing, make sure you account for the fees Etsy charges its sellers.

Frequently asked questions

How do i attract buyers on etsy, do you need an llc to sell on etsy, does etsy report my shop income to the irs.

Article sources

We use primary sources to support our work. Bankrate’s authors, reporters and editors are subject-matter experts who thoroughly fact-check editorial content to ensure the information you’re reading is accurate, timely and relevant.

Key figures . Etsy. Accessed on October 25, 2023.

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How to Start an Etsy Shop (and Make $60K/Month)

Cash is not king. Creativity is. Have you ever wanted to start your own Etsy shop? Vlad Kuksenko started TagPup and in 18 months became the top pet product seller. You can do it, too!

We sat down with Vlad and learned how he loved art but earning a living as an artist wasn’t an option until graphic design became a major field. Today, he creates personalized dog collars, leashes, and bandanas that fill the number one pet products shop on Etsy.

What is Etsy?

What to do before opening an etsy shop, how to start an etsy shop, selling on etsy faq, learn more about etsy businesses, start your own etsy shop.

Get ready to become your own Etsy shop manager.

Etsy is an online marketplace where shop owners can sell products to Etsy’s 82 million buyers looking for handmade and vintage products. Etsy listings fall into eight major categories:

• Jewelry & Accessories
• Clothing & Shoes
• Home & Living
• Wedding & Party
• Toys & Entertainment
• Art & Collectibles
• Craft Supplies
• Seasonal Offerings (think Valentine’s Day, Veterans, Memorial, and Labor Days, 4th of July, Halloween, Thanksgiving, and Christmas)

Keep reading for things to sell on Etsy.

Before you sell items on Etsy, there are a few things you should do, including answering:

What to sell on Etsy?

What is the industry outlook.

• Who are the major players on Etsy?
• What will my Etsy business plan be?

If you’re wondering what sells best on Etsy, check out the Etsy best sellers list . The best-performing segments according to Etsy’s 3rd Quarter 2021 Earnings Presentation are:

1. Homewares & Home Furnishings: $4.2 billion 2. Jewelry and Personal Accessories: $2.1 billion 3. Craft Supplies: $1.4 billion 4. Apparel: $1.4 billion 5. Paper & Party Supplies: $600 million 6. Beauty & Personal Care : $300 million

Many of these are vintage items, handmade goods, or personalized items that do particularly well with Etsy shoppers. Vintage items are classified as over 20 years old, while handmade means that each is unique.

Vlad spent a lot of time talking about the decision-making process of what to sell in an Etsy shop. He explained:

Etsy is a want-based business. If you can personalize it, you can sell it.

He went on to explain:

You need a keyword to be able to sell it. If there is no keyword people are searching, you can’t sell it.

He suggests using eRank to help with your search engine optimization (SEO). eRank has various tools to help small business owners come up with product ideas, optimize their listings, and track their shop page against the best Etsy shops.

Vlad described his product development process as:

• Research what has a high search volume using eRank.
• Input the term you are targeting into the Etsy search bar.
• Look for products with at least one review per day because that means they are selling at least 5 to 10 per day.
• What is frequently favorited?
• What do the favorited items have in common?
• Design your offerings based on this search.

Vlad gave two additional pieces of advice that small business owners should follow when wondering how to start an Etsy shop:

• “You need multiple products that work well together. Carrying a single product doesn’t do as well.”
• Be aware of seasonality. For instance, items like planners, weight loss tools, and wall hangings tend to do better at the beginning of the year.

Now that you understand how to decide what to sell on Etsy, you’ll want to know the differences between Etsy and other major players in the industry. Let’s take a look.

According to eMarketer , U.S. eCommerce sales are expected to grow by 10 to 15% per year and total over $1.6 trillion by 2025. Most of the earnings will be from top players like Amazon and Walmart.

Etsy had an industry-leading 107% increase in Gross Merchandise Sales, which means if you meet the requirements to start an Etsy shop, it is the place to be.

Now that you know where the industry is going, keep reading to learn how to start an Etsy shop.

Who are the major Etsy sellers?

Etsy doesn’t share each company’s revenue, but they share the number of transactions for each Etsy shop and the number of followers. Some of the most prominent players are:

• Planner Kate : An organization shop with 1.8 million transactions and 60K followers
• Bead Boat : Craft supply shop with 1.4 million transactions and 57K followers
• ModParty : A bridal shop with over 1.22 million transactions and 113K followers
• Peggy Sue Leather : Leather supply shop with almost 790K transactions and 25K followers

Pro Tip: See more top sellers on Practical eCommerce’s blog 20 Top Selling Shops on Etsy.

Etsy offers plenty of opportunities for shop owners to make a great living. Here are a few business owners that we’ve interviewed who run businesses similar to Etsy sellers:

• Urbanity : $102K per month in revenue selling clothes
• Check out our interview with Marcus .
• Blk Sunflower : $180K per year selling homemade candles.
• TagPup : The Etsy seller we’re featuring in this article. Check out our first of two videos with him below.

Write an Etsy business plan

You don’t need a business plan for an Etsy shop, but it will be much easier to start an Etsy shop if you start by writing a business plan. A business plan is something we recommend for every new business.

Your Etsy business plan should include:

• Your business name, idea, and goals
• Market research
• Size of market
• Gaps in market
• Whether Etsy is the best place to reach your market
• Are there gaps between the money you have and the money you need? How will you solve them?
• Marketing goals and processes.
• The path to achieving your set goals

Check out our interview with Mike Andes on how to write a business plan.

We’ve gathered some templates and resources for you to make creating a business plan for an Etsy shop easier. Check them out below.

Etsy Business Plan Templates

We’ve gathered templates to help you develop your business plan. Here are some of the best:

• UpFlip business plan template
• One-page business plan
• U.S. Small Business Administration (SBA) Business Guide
• Get help writing a business plan.

EXCITING ANNOUNCEMENT: Stop wasting countless hours and dollars trying to figure out how to succeed on Etsy. Unlock the proven strategies of Vlad, who built a $3.2M Etsy business from scratch. Learn his secrets and start transforming your Etsy shop today with UpFlip Academy .

Starting an Etsy shop can be a great way to sell handmade, vintage, or unique items. Here are step-by-step instructions on how to get started:

Sign up or log in to Etsy

Open your shop, choose your shop preferences, name your shop, stock your shop, add clear photos, set your prices, choose your payment methods, establish shop policies, calculate shipping costs, promote your shop, fulfill orders promptly, provide excellent customer service, monitor your shop.

• Consider Etsy advertising

Stay compliant with Etsy policies

Reinvest in your business.

Let’s start by opening getting an Etsy account.

If you don’t already have an Etsy account, you’ll need to create one. If you do, log in.

Click on “Sell on Etsy” in the top right corner of the Etsy homepage.

To create an Etsy shop, you’ll need to go to the Etsy official site and create an account. You can use Etsy sign-in through Google or Facebook to make it easy. After you have created an Etsy account, you’ll want to go to etsy.com/sell . Review everything and click “Open your Etsy Shop.”

It will take you to a “shop preferences” page that asks for your shop language, shop country, and shop currency. You can change these with the drop-down menu.

It also asks, “Which of these best describes you?” and gives the following options:

• Selling is my full-time job.
• I sell part-time but hope to sell full-time.
• I sell part-time, and that’s how I like it.

All the answers on the shop preferences page have default answers already added. If you wish to change the answers, do so, then click “Save and Continue.”

In this step, you’ll choose a unique shop name for your new Etsy shop. The shop name needs to meet the following guidelines:

• Shop Name Length: Include a maximum of 20 characters, only Roman letters and numbers, no spaces or punctuation.
• Shop Name Availability: Push “Check availability” to verify whether the name is available.
• Descriptive: Does it describe what you sell?
• Memorable: Is it easy to remember?
• Use our business name generator to verify the name is available as a domain.
• Search “[your location] business license search” to check availability in your location.
• Use uspto.gov to check trademark availability.

Once you’ve settled on a great name, enter it then click “Save and continue” to proceed to the next page, where you will create listings.

Want to hear more about Vlad’s TagPup success? Listen to his podcast episode below.

On this page, you’ll want to add all your listings. You’ll click the blue box that says “+ Add Listing,” which will take you to the “Add a new listing” page. This page is relatively long, so we’ve broken it into sections to make it easier to follow.

• Listing Details
• Inventory and Pricing
• Personalizations

What should I include in my Etsy listing details?

You’ll want to include the following information in the listing details:

• Example from one of my hoodies: “Unisex Shaded Hands Heart Hoodie- Artwork by Daisy Gray”
• Who made it? Me, member of my shop, or another company or person
• What is it? Finished product or supplies and tools
• When was it made? Made to order (use this for print-on-demand), Recent (choose dates between 2003 and today), Vintage (Pre-2003)
• Category: Search for and select your product type
• Sizes and Colors: Select the option that describes it best, or select “multiple” to create variations.
• There are a lot of attributes, and they change based on the category. Review them and select whatever fits best as they can help with search results.
• Optional for clothing: Sleeve length, closure, and clothing style
• Renewal: Auto or manual
• Type of Product: Physical or digital
• Read Etsy’s tips on product descriptions .
• Preview the description on Google straight from the listing page.

Vlad told us:

Read your competitors’ descriptions. Use graphics as opposed to descriptions when possible. For instance, take the dog collars and a ruler to show the different sizes.

• Partner name
• Additional information
• Why you work with them, your role, and their role
• Tags: Keywords you want your product to show up for, maximum of 13 tags
• Materials: Type of raw materials. For instance, cotton and polyester.

The tags are the key to getting your shop name in front of your target audience. Don’t forget to use eRank to help with the tag selection.

We asked Vlad, “What Etsy tags should I use?”

When creating tags, think about ‘Where should I show this product?’

If you’re creating t-shirts, you don’t need the word ‘t-shirt’ in each one. Just include it in the first three, and use other tags that will put it in front of other people.

To do this section right, expect to spend an hour per product or more.

Example of tags

Given Vlad’s suggestion, you may want to use the following tags if you have a Taylor Swift shirt (which is one of the trending topics for t-shirts this year):

• Taylor Swift tour shirt
• Taylor Swift Eras shirt
• Eras tour shirt
• Taylor Swift tour
• Taylor Swift Eras
• Taylor Swift outfit
• Taylor Swift merch
• Red Taylor Swift
• Lover shirt
• 1989 Taylor Swift

How to set up an Etsy shop video

Etsy recommends creating a product video. They give you instructions on how to take listing videos in the Etsy Seller Handbook. If you add product videos, they should meet the following qualifications:

• 1080p or higher resolution
• 5-15 seconds long
• Less than 100 MB file size
• 30 frames per second
• Don’t edit the video before loading it into Etsy. (If you edit the video from standard video sizing to a 1:1 height-to-width ratio, you may have issues uploading from an iPhone.)

You can make a video with a 1:1 ratio after adding the video to Etsy by using the editing tools on their site.

Now that you know how to add a video to your Etsy listing page, let’s look at the other information covered in Etsy listing details.

High-quality images are crucial to start selling. Take well-lit, clear photos that accurately represent your items.

Etsy allows you to add up to ten photos on the website. Want some tips on how to create great product images? Check out the list below.

• Use natural light and no flash. Late afternoon is the best time to photograph.
• Include a common object for scale, or use a ruler if needed.
• Show the item being held, worn, or used.
• Shoot against a clean, simple background. Most platforms require white backgrounds for the primary photo, so it’s best to have at least one that shows the image on a pure white background because you’ll probably sell on other platforms too.
• Add photos of your variations so buyers can see all their options.
• Set the pixels per inch to 72 and 2000 x 2000 pixels.
• Verify that the combined photo image sizing is no larger than 1 MB total. Otherwise, it slows pages on mobile devices not connected to WiFi.

After you add photos, remember to edit the meta description to help with search engines by hovering over the image and clicking on the pencil. You can also crop or delete the image in the hover menu. If you click and hold onto an image, you can change its placement.

Consider the cost of materials, time, and any fees when setting your prices. Be competitive but also make sure you’ll make a profit. The pricing should be high enough to cover the following:

• The cost of the goods
• Etsy’s $.20 listing fee
• Etsy transaction fees of 5% of the product price plus shipping price
• The Etsy payment processing fee of 3% + $.25 in the U.S. (varies by country)
• Etsy’s 15% off-site marketing fee, which is charged every time Etsy randomly places your product in an off-site ad that results in a purchase
• Cost of shipping labels ($6.99 at the time of writing; learn more about shipping labels in Etsy’s Seller Handbook)
• Any other costs associated with your Etsy shop

How to start an Etsy shop with no money

You can open an Etsy shop without money, but the Etsy platform requires a $.20 per item listing fee that you’ll have to pay when the product sells. If your items are not made-to-order, Etsy shop owners can get started for free. This is especially true if you can start selling vintage goods you already own as you won’t have to buy new materials.

Now that you know how to start an Etsy shop, let’s look at Etsy payments.

Set up your preferred payment method. Etsy Payments is a commonly used option that allows buyers to pay for a physical or digital product assuming your payment account settings allow each of the options as Etsy payments :

• Credit cards
• Debit/bank cards
• Etsy Gift Cards and Etsy Credits
• Klarna Financing (U.S. only)
• Klarna installment payments (Australia, Canada, Spain, UK, U.S.)

Define your shop policies regarding shipping, returns, and exchanges. This helps set clear expectations for your customers. You’ll have to follow Etsy’s policies, but as a shop owner, you can also define your own about subjects like returns, exchanges, and cancellations. Printify goes into more detail about Etsy store policies .

Etsy offers a free shipping option, and I highly recommend using it. While Vlad didn’t specifically mention offering free shipping, he offers it on many of his products, and considering how much we love free shipping, we assume that’s part of TagPup’s success! He made some comments that suggest including the shipping in the price of the goods:

Be very clear in what they are buying to get better reviews.

Don’t trick people.

Additional shipping charges can be tricky at times, so I (the author) suggest using the free shipping feature. It is straightforward; they’ll ask you a couple of questions, including:

• Origin zip code: Where it’s mailed from • Processing time: How long it takes from when the customer orders until when it ships • Where I’ll ship: Continents or specific countries • Shipping services: Your offerings for shipping • Free shipping: Domestic or international (I would discourage offering free international shipping unless you are well-versed in shipping and pricing costs)

Then you’ll have an option to add shipping to the price of the product. Review Etsy pricing strategies to include free shipping and learn how to include the pricing in the product cost.

In addition to specifying shipping options, remember to establish and post a very clear return policy that details:

• When you accept returns (standardized product, within 90 days, not-made-to-order, manufacturer error)
• When you will not accept returns (damaged after shipping, custom made, after 90 days)
• Time frame to return the product
• Who pays for return shipping

Marketing is the trick to growing any business. You have to get your business and products in front of people to sell them. Fortunately, Etsy makes it pretty easy for a small business to sell on its marketplace.

If you don’t have much experience with marketing, it starts with market research . Mike Andes goes into great detail about market research, including identifying potential customers, target markets, and demographics. Check out our interview with him below:

Vlad had a lot of input on how to sell on Etsy. He emphasized the importance of product design:

Art ought to communicate to [potential customers]. If it doesn’t communicate, it’s not art and won’t sell.

He also told us you should “price your products based on the middle of the pack” because Etsy customers aren’t looking for items they need but that they want. They will go for the one that meets their desires the best.

He also shared this advice:

Don’t race to the bottom and satisfy the keyword.

His strategies for becoming one of the best Etsy shops for pet products are also used by retail giants, and you can leverage them, too. As you start marketing your Etsy shop:

• Vlad told us: Underbid, rank, then raise the price.
• Use Etsy promotional pricing.
• Utilize Etsy free shipping: Everyone loves something free. With the success of Amazon Prime, online shoppers expect every online marketplace to offer free shipping.
• Gather data and improve: While underbidding, he’s able to gather data.

He told us:

I’ll take a loss to gather data and improve my knowledge about whether it performs, then introduce new keywords.

Vlad also suggested:

Use the sales and coupons. I’ll set the product to the original price, then discount it heavily. I also match products together to create packages people love. Always create sales for holidays.

He also said that he throws in a small gift for repeat customers occasionally, but he doesn’t do it all the time.

For more on TagPup’s winning formula, watch our second video with Vlad here.

Helpful marketing tools

There are some useful marketing tools that small business owners use to market their companies:

• Canva: Simplify graphic design with Canva . Get access to thousands of templates for websites and social media for as low as $4.99 per month.
• SurferSEO: Write blog content faster and rank higher on search engines with SurferSEO .
• MailChimp: Email and SMS marketing automation is one of the keys to success that many small business owners mention. Get started with Mailchimp .

Ship orders as soon as possible after they’re placed. This will help you provide excellent customer service. You can use Etsy shipping labels to save up to 30% on your shipping cost. Learn more about shipping label fees on Etsy .

You can also provide tracking information by using Etsy tracking labels or providing the tracking codes to the customer by other means. You’ll need to check Etsy and your preferred shipping provider to figure out the best way to handle shipping.

Respond to customer inquiries and concerns in a timely and friendly manner. The service you provide both before and after a purchase will impact customer satisfaction, whether they return to your shop, and whether they review and suggest your shop to other people.

According to inc.com , it takes 40 positive reviews to fix the damage done by a single negative review. When someone is upset, take the time to solve their problem politely. Vlad told us:

I work with customers on returns as long as they are less than 90 days. After that, we don’t. I just try to make them happy.

The process I (the author) have found works wonders for dealing with unsatisfied customers is:

• Apologize for the inconvenience they are experiencing.
• Ask what you can do to fix it.
• Listen to their answer.
• Gather information about whether it was your error or theirs.
• Do exactly what they asked unless it is unachievable.

This can be a challenge because it may result in a single order resulting in a loss, but it’s far less costly than a bad review.

Vlad discusses his workflow at the 35-minute mark of UpFlip podcast episode 10. If you haven’t already listened to it, check it out now.

Review your store and each item for week-over-week growth. If that section of the pie doesn’t grow, stop. If the reviews for it aren’t good, consider discontinuing the product.

Consider Etsy ads

Etsy has a built-in ad feature where you can specify your daily ad spend limit, and they promote your products accordingly. The Etsy Seller Handbook answers how Etsy Ads work in more detail, but you basically create a budget of between $1 and $1,000 a day.

I typically spend between $300 and $1,000 per day on ads. Etsy really creates a level playing field, so going higher doesn’t mean it all gets spent.

He went on to tell us the best way to use ads is to utilize keyword research.

Find the most creative way to make the ad as quick as possible to make it where the ad budget goes as far as possible.

Familiarize yourself with Etsy’s policies to ensure you’re abiding by their rules and regulations.

You’ll want to reinvest in your business to help it grow and get more customers. Vlad told us:

Margins are 50-60% if you don’t reinvest in the business, but we tend to reinvest in machinery.

In addition to adding machinery, you can create new products or increase marketing to expand your business. Once you earn more income consider opening a retail location or hiring more employees to help.

Where to buy materials and equipment for an Etsy store

You can purchase materials from a variety of places. Some of the places to buy when you first start are:

• A brick-and-mortar store: JOANN Fabric and Michaels are two that offer lots of selections for craft businesses.
• Etsy Craft Supplies : Find craft supplies you know are selling well on Etsy.
• Amazon : Craft supplies and tools can come directly to your home from the number one online retailer.
• Alibaba: Get bulk orders from overseas (allow weeks to months for shipping).

If you’re looking for equipment, Amazon and Alibaba might have it, but you can also check places like:

• Global Industry
• Northern Tool

You can spend 200 bucks at JOANN and customize mugs with vinyl. The materials and equipment costs depend on what you’re making and what machines you need.

He also told us:

Inventory is such a big issue. Sometimes I spend $5,000 on shipping to get $10,000 of product. One of the ways to fix that is to pay half up front and half on delivery.

Do I need a business license to sell on Etsy?

Etsy does not require a business license to start listing physical or digital product, but the government might if you make more than $600 from your Etsy shop. In addition, a business bank account, reseller’s license, and business credit card will all require a business license.

Each city, state, and country have different licenses, permits, and tax forms required. Refer to the SBA License and Permits page to identify what your Etsy shop needs.

Vlad suggested reading the book E-Myth Revisited: Why Most Small Businesses Don’t Work and What to Do About It . You can get it through our Amazon shop .

• Check out Vlad’s YouTube, TalkShop .
• Save 30% on Vlad’s course .
• Etsy Success
• Nancy Badillo , a highly successful Etsy seller, has almost as many followers as Etsy’s channels combined.

We’ve explained the market outlook for eCommerce, how to start an Etsy shop, licensing requirements in case you want to make your shop a formal business, and marketing strategies to improve your business results.

If you’d like to consider other business ideas, check out our blog about the 30 best businesses to start for under $10,000.

Etsy can be an extremely satisfying way to earn a living. What kind of products are you thinking about listing on Etsy?

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How to Start an Etsy Shop for Beginners: Step by Step Guide

posted on May 4, 2024

Etsy has become a hub for independent makers and artists to showcase their creativity to a worldwide audience.

For budding entrepreneurs, starting an Etsy shop can be the first step toward turning passion into profit.

But where do you start?

This extensive blog post is tailor-made for beginners , walking you through every crucial step of setting up an Etsy shop , from opening your virtual doors to scaling your business.

Key Takeaways

• Understanding Etsy’s Platform : Before you start your Etsy shop, get familiar with the Etsy marketplace. Understanding how the platform works will help you match your products with what customers expect.
• Creating Your Brand : Your Etsy shop needs a clear, unified brand identity . Pick a memorable name , create a standout logo, and maintain a consistent look and story in all your listings and shop design.
• Listing Your Products : High-quality product photos and detailed, keyword-optimized descriptions are essential. They not only attract potential buyers but also improve your visibility within Etsy’s search algorithm.
• Pricing Strategies : Setting competitive prices is key to attracting customers without undervaluing your work. Consider material costs, labor time, shipping, and Etsy fees when pricing your items.
• Marketing Your Shop : Use social media, content marketing, and Etsy’s ads to get more visitors to your Etsy shop. Connect with your community, work with influencers, and improve your SEO to make your store more visible.
• Managing Orders and Customer Service : Great customer service and smooth order handling are key to keeping customers coming back. Make sure your shipping, returns, and exchange policies are clear, and always respond quickly and professionally to customers.
• Continual Learning and Adaptation : Keep up with Etsy’s guidelines, market trends, and what customers like. Being flexible and constantly improving your shop is key to staying ahead of the competition and growing your business.

Why Choose Etsy as Your Selling Platform?

Etsy is more than a marketplace – it’s a community.

It attracts millions of buyers looking for unique, handmade items , setting itself apart through its specialized focus and supportive environment.

For creators, this means they get access to a targeted audience and a network that supports growth and collaboration.

The platform’s user-friendly interface, comprehensive resources for sellers, and range of tools create a perfect setting for new businesses to thrive.

Pros and Cons of Selling on Etsy

• Targeted Audience: Etsy’s large and engaged community is specifically looking for unique, handmade, and vintage items, providing sellers with a ready-made customer base.
• Ease of Use: Setting up a shop on Etsy is straightforward, with user-friendly tools and interfaces designed for beginners.
• Support Resources: Etsy offers a wealth of resources for sellers, including forums, tutorials, and marketing tools to help grow your business.
• Brand Visibility: Being on a popular platform like Etsy can significantly enhance your brand’s visibility and credibility.
• Community Support: The sense of community among Etsy sellers fosters collaboration and learning, beneficial for new entrepreneurs.
• Listing and Transaction Fees: Etsy charges for listing items and takes a percentage of every sale, which can add up for those with high sales volume or low-priced items.
• Competition: With millions of sellers, standing out on Etsy requires effort in SEO, photography, and unique product offerings.
• Limited Customization: While Etsy allows for some customization of your shop, the options are limited compared to running your own website.
• Reliance on Third-Party Platform: Changes in Etsy’s policies or fee structures can directly impact your business.
• Brand Differentiation: Building a distinct brand identity can be challenging on a platform with many similar products and sellers.

RELATED: Pros and Cons of Selling on Etsy

Preparing to Open Your Etsy Shop

Before you click ‘Open Shop’, there are some important steps you need to take.

Research and Niche Identification

Spend time researching what’s hot and what’s not on Etsy.

Discover trends, identify your competition, and most importantly, pinpoint where your unique products fit.

The better you understand your niche , the easier it is to customize your products and stand out.

How to Find the Perfect Niche for Your Etsy Shop

Step 1: explore existing categories on etsy.

Begin by exploring the many categories and subcategories on Etsy. Identify which ones match your interests or potential product ideas.

This first step provides you with an overview of the Etsy marketplace and its variety of products.

Step 2: Identify Popular Trends on Etsy

Leverage tools like Etsy’s Trend Guide, social media, and Etsy forums to spot current market trends . Pay attention to what’s gaining traction, from specific product types to styles and themes.

This insight can help you align your product ideas with what customers are actively seeking.

Step 3: Analyze the Competition on Etsy

To find interesting niches , look at other Etsy shops that sell similar items.

Check out what they offer, their prices, and how they promote their products.

This helps you get to know your competition and spot market opportunities you might take advantage of.

Step 4: Determine Your Unique Selling Proposition (USP)

Think about what makes your products or approach stand out.

Look at your skills, what you’re interested in, and ways you can make your shop different from the rest.

Your unique selling point (USP) is key to making your Etsy store stand out in a busy market.

Step 5: Validate Your Niche

Before diving into your chosen niche, make sure it’s a good fit.

Do some market research, talk about your product ideas with friends or family, or make a small batch of products to see how people react.

If you get positive feedback, it’s a sign you’re on the right track.

Step 6: Adjust Based on Feedback

Be willing to tweak your niche based on feedback and how well your products sell.

You might need to adjust your focus as you get to know your target audience better and understand what they like.

Making changes based on what customers say and your sales figures is key to perfecting your niche and what you sell.

RELATED: Online Market Research for Beginners Step by Step

Write an Etsy Business Plan

Setting goals and planning your strategy will give you direction.

Understand your target market, calculate your expected revenues, and set realistic targets for growth.

An Etsy shop business plan doesn’t need to be complex, but it should keep you on track.

How to Create a Simple Business Plan for Your Etsy Shop

Creating a simple business plan for your Etsy shop is a critical step towards building a successful Etsy shop.

Here’s a beginner’s guide to help you write your Etsy shop business plan:

Step 1: Executive Summary

Begin with an executive summary, which is an overview of your business goals and the products you plan to sell on Etsy.

It should highlight what you want to achieve with your Etsy shop and your vision for the business.

Step 2: Business Description

Describe your Etsy business in detail.

Explain what your Etsy shop is all about, the kinds of products you plan to sell, and what sets your products apart.

Mention the specific market needs your Etsy shop aims to meet and any market advantages you think you have.

Step 3: Market Analysis

Analyze the market to know your competitors and target customers better.

Look for trends in Etsy and the wider e-commerce scene that might affect your shop.

Describe your perfect customers and your strategies to connect with them.

Step 4: Products and Services

Talk about the products or services you’re going to sell in your Etsy shop.

Mention where you’re getting your products from, how you’re making them, your pricing strategy, and how they fit what your target market needs.

Also, think about how you’ll grow and add to your product line down the line.

Step 5: Marketing and Sales Strategy

Outline your strategy for attracting and retaining customers.

This could include SEO strategies for Etsy , social media marketing, email campaigns, and any other promotional activities you plan to use.

Detail how you will handle sales operations, customer service, and post-purchase follow-up.

Step 6: Operations Plan

Describe the day-to-day operations of your Etsy shop.

This includes production processes, how you’ll manage inventory, supplier information, shipping methods, and any tools or systems you will use to keep your Etsy business running smoothly.

Step 7: Financial Plan

Write a basic financial plan that covers start-up costs, forecasted income, pricing strategy, and any initial investments needed.

Include a break-even analysis to understand when your Etsy shop will likely start making a profit.

Remember, these numbers do not need to be exact but should give you a clear idea of expected financial performance.

Step 8: Review and Adjust

Finally, regularly review your Etsy business plan and adjust as necessary.

Your Etsy shop will evolve and so should your business plan.

Update it to reflect changes in your business model , market conditions, and financial status.

Crafting an Identity

Your Etsy shop’s name, logo, and banner are key visual signals to customers.

Make sure they’re attractive, consistent, and truly represent your brand.

Keeping your branding consistent helps build trust and recognition with your customers.

Tips for Naming Your Etsy Shop

When starting your Etsy business, the name you choose is crucial.

It’s not just a label; it’s the first impression and a significant aspect of your brand identity.

Here are some top tips for finding the perfect Etsy shop name:

• Keep it Memorable and Simple : Pick a name that’s easy to remember, spell, and say. Steer clear of complicated words or phrases that customers might struggle to remember. Remember, Etsy shop names can only be up to 20 characters long.
• Reflect Your Brand : Make sure the name clearly reflects what you’re selling or the style of your work. This will attract the right customers.
• Use Keyword Research : Incorporate keywords related to your products into your shop name to improve searchability on Etsy and search engines.
• Check Availability : Before settling on a name, check that it’s not already in use on Etsy and that the domain is available if you plan to have a separate website.
• Think Long-Term : Choose an Etsy shop name that can evolve with your business. Stay away from names that are too specific and could restrict you as your products change.
• 400+ Etsy Shop Name Ideas for Entrepreneurs
• 200 Unique Etsy Shop Names for Digital Products
• 100 Unique Etsy Shop Name Ideas for Printables
• 100 Unique Etsy Shop Name Ideas for Art

Creating Your Etsy Logo

A great logo captures your brand’s essence and makes it memorable.

Here’s how to create yours:

• Define Your Brand Identity : Understand what your brand stands for —its personality, core values, and what makes it unique.
• Look for Inspiration : Explore logos from brands within and outside your niche to get ideas for your design.
• Choose Your Design Elements Wisely : Select colors and fonts that reflect your brand’s personality. For example, soft colors and script fonts might suit a vintage brand, while bold colors and sturdy fonts might be ideal for a modern, edgy shop.
• Keep It Simple : A simple logo is more recognizable and easier to reproduce across different mediums.
• Use Online Tools or Professional Help : If you’re not a designer, online logo makers or hiring a professional designer can be great options to create your perfect logo.

Designing Your Etsy Banner

Your Etsy banner is like an online storefront; it should capture and convey the essence of your brand visually. Here’s how to create a captivating Etsy banner:

• Stick to Your Brand Theme : Ensure your banner’s design aligns with your overall brand style, using consistent colors, fonts, and imagery.
• Make It Visually Appealing : High-quality images, clear text, and a clean layout can make your banner stand out.
• Highlight What You Sell : Use images or text that give potential customers a clear idea of what your shop offers.
• Size Matters : Follow Etsy’s size recommendations for banners to ensure your design looks great on all devices.
• Update Seasonally or for Sales : Consider updating your banner for holidays, seasons, or special promotions to keep your shop looking fresh and engaging.

Opening Your Etsy Shop

Once you have the basics done, it’s time to open your Etsy shop!

Opening an Etsy shop is an exciting step towards sharing your creations with the world.

How to Open Your Etsy Shop

• Create an Etsy Account : If you don’t already have one, you need to sign up for an Etsy account. This will be your first step towards becoming an Etsy seller.
• Set Your Shop Preferences : Once logged in, you can start the process of opening your shop. Etsy will guide you through selecting your shop language, country, and the currency you will be using. These settings help tailor your shop to your audience.
• Choose an Etsy Shop Name : Your shop name is how customers will identify your brand on Etsy. It should be memorable, easy to spell, and reflect your brand’s personality. Etsy requires that shop names be 4-20 characters long, without spaces or special characters.
• Fill in the Details : Provide some additional information about your Etsy business, including your shop’s location. This information will help build trust with potential customers.
• Set Up Billing : Etsy requires you to have a billing method in place. This is used for paying seller fees and other charges. Depending on your country, you can typically use a credit card, debit card, or PayPal.
• Stock Your Shop : Before you can officially open your Etsy shop to the public, you’ll need to create at least one listing (we’ll get into product listings later). This is a crucial step for Etsy to finalize the setup of your shop.
• Customize Your Shop : Lastly, take some time to customize your Etsy shop by adding a profile picture, a banner (as previously discussed), and filling out your shop’s “About” section. This helps customers get to know you and your brand.

After following these steps, you’ll be ready to officially open your shop on Etsy.

Remember, the key to a successful Etsy shop is not just the items you sell, but the story and brand you build around them.

Helpful Tips for Opening Your Etsy Shop

For beginners looking to set up their Etsy shop , these simple tips can make the process smoother and help dodge common mistakes:

• Double-check your Etsy Shop Name : Ensure your chosen shop name is unique on Etsy and doesn’t infringe on any trademarks. Once registered, changing it can be challenging.
• Complete Your Profile : A complete, detailed seller profile, including a photo and bio, can build trust with potential customers.
• Set Up Payment Methods : Decide and set up how you’ll get paid (e.g., PayPal, credit/debit cards) and how you’ll pay your Etsy fees.
• Understand Etsy’s Fees : Familiarize yourself with the listing, transaction, and payment processing fees to avoid surprises.
• Create Clear Policies : Draft clear, fair policies for shipping, returns, exchanges, and customs. This helps manage customer expectations and protects your shop.
• List Your Products Wisely : Start with a few high-quality listings. Ensure each listing has a descriptive title, detailed description, and high-quality photos. Use keywords to improve searchability.
• Leverage Etsy SEO : Utilize Etsy’s SEO to your advantage by researching keywords relevant to your products and incorporating them into your shop and listings.
• Set Up Your Etsy Shop Sections : Organize your products into sections to make it easier for customers to browse your shop. Think of sections as categories or collections.
• Learn from Others : Join Etsy’s community forums and teams to gain insights, ask questions, and get feedback from more experienced sellers.
• Review Etsy’s Seller Handbook : Etsy provides a comprehensive guide that covers everything from setting up your shop to scaling your business. Make it your go-to resource.

RELATED: Best 50 Etsy Shop Ideas for Creative Entrepreneurs

Listing Your Products

Listings are the lifeblood of your Etsy shop. They need to be detailed, engaging, and accurate.

How to List Your Products in your Etsy Shop

• Go to Your Shop Manager : Once your shop is set up, go to the Shop Manager. This is your “command center” for anything related to your Etsy shop.
• Click on ‘Add a Listing’ : Inside the Shop Manager, find and click on the ‘Add a Listing’ button. This will start the process of creating a new product listing.
• Upload Photos : Etsy allows you to upload multiple photos. Make sure your photos are well-lit, clear, and showcase your product from various angles. The first photo will be your main image, so choose wisely.
• Fill in the Details : Provide a clear and descriptive title for your product. Fill in the category, type, price, quantity, and any variations (like size or color) your product may have.
• Craft Your Description : Write a detailed description that informs and entices potential buyers. Include dimensions, materials, how it’s made, and any other important details.
• Add Relevant Tags and Keywords : Use keywords that potential buyers might use to find your product. Tags can help your visibility in search results.
• Set Your Inventory and Pricing : Indicate how many items are available and set a price for each. Consider your costs, the market price, and Etsy fees when setting your prices.
• Choose Your Shipping Options : Specify how you will ship your product, the cost, and the shipping time. You can use Etsy’s shipping profiles to make this easier.
• Publish Your Listing : Once everything is filled out, click on the ‘Preview’ button to see how your listing will look. If everything is correct, click ‘Publish’. You will be charged a listing fee by Etsy.
• Promote Your Listing : Share your listing on social media, blogs, or through Etsy’s advertising options to get your first customers.

Following these steps will help ensure your product listings are effectively set up, providing a solid foundation for your Etsy shop’s success.

Tips for Writing an Etsy Product Title

• Be Specific and Descriptive : Your title should clearly indicate what the product is. Include essential information like the product type, main materials, and any key feature (e.g., handmade, vintage).
• Use Keywords Strategically : Think about what your potential buyers might search for. Incorporate these keywords in your title without stuffing them.
• Keep It Clear and Concise : While it’s important to be descriptive, avoid making your title too long. Etsy suggests keeping titles under 140 characters for optimal visibility.

etsy product title example

• “Handcrafted Silver Moon Necklace – 925 Sterling, Minimalist, Pendant, Gift for Her”
• Why It Works: This title is effective because it immediately informs the buyer about the key characteristics of the product (handcrafted, silver, necklace) and its composition (925 Sterling). By including terms like “Minimalist” and “Gift for Her,” the seller targets specific search intents and potential buyer interests, increasing the chances of the listing being found and appealing to the right audience.
• “Vintage Leather Messenger Bag – Brown, Genuine Leather, 15-inch Laptop Compartment”
• Why It Works: This title clearly specifies what the item is (a messenger bag) and its unique selling points (vintage, genuine leather). The inclusion of practical details like the color and the specific size of the laptop compartment addresses common buyer queries upfront, making the listing both informative and search-friendly.
• “Custom Pet Portrait – Hand-Painted, Personalized Dog & Cat Artwork, Pet Memorial”
• Why It Works: The title starts with a compelling value proposition (custom, hand-painted) and specifies the product category (Pet Portrait). By mentioning that it can be personalized for dogs and cats and serves as a pet memorial, the title targets different customer segments within the pet owner community, demonstrating the personalized and sentimental value of the artwork.

These examples demonstrate how effective product titles are not just about describing the product; they strategically incorporate keywords, address buyer interests, and highlight key features or benefits that set the product apart.

This approach not only boosts search visibility on platforms like Etsy but also directly communicates the value proposition to potential buyers, making them more likely to click through and purchase.

Tips for Writing an Etsy Product Description

• Start with a Hook : Begin with an engaging sentence that highlights what makes your product unique or why it’s a must-have.
• Use Bullet Points for Key Features : List your product’s main features in bullet points for easy reading. Include size, color options, material, and care instructions.
• Tell the Story of Your Product : Share how your product is made, the inspiration behind it, and any other details that add a personal touch. This can create an emotional connection with potential buyers.
• Include a Call to Action : Encourage your readers to make a purchase or browse more of your products by including a call to action at the end of your description.

Etsy Product Description Example

Imagine the wag of a tail or the purr of contentment captured forever in art. Our Custom, Hand-Painted Pet Portraits are more than just paintings; they are a window to the soul of your beloved pet. Whether it’s a vibrant portrayal of your dog’s playful energy or a tender reflection of your cat’s serene grace, each portrait is as unique as your furry friend.

• Material : High-quality, durable canvas that stands the test of time
• Size Options : Choose from 8×10, 12×16, or 18×24 inches to fit any space
• Customizable : Personalize with your pet’s name and select from a range of color palettes
• Artistic Touch : Crafted by skilled artists who specialize in pet portraits
• Care : Dust lightly with a soft, dry cloth to maintain the vibrancy of your portrait

Behind every stroke and color choice is a story of love, companionship, and the countless moments that make your pet irreplaceable. Perfect for commemorating milestones, celebrating new additions, or honoring precious memories, these portraits promise to be a cherished keepsake. Ready to keep your pet’s memory alive in a masterpiece? Click “Add to Cart” and take the first step towards immortalizing your beloved companion.

Tips for Best Product Photography on Etsy

• Use Natural Light : Natural lighting can help your product look its best. Take photos during the day when you can use plenty of indirect sunlight.
• Consistency is Key : Maintain a consistent look across all your product photos. This includes using the same background, lighting, and angle where possible.
• Showcase Your Product from Multiple Angles : Capture your product from various angles to give a comprehensive view. Include close-ups to highlight details and textures.
• Use a Clean Background : A plain, non-distracting background puts the focus on your product. White or light-colored backgrounds are often preferred as they keep the image bright and airy.
• Edit Your Photos : Use photo editing tools to adjust the brightness, contrast, and saturation to ensure your product looks true to life. Avoid over-editing that might misrepresent your product.
• Include Context : Where applicable, show your product in use or in a lifestyle setting to help customers visualize owning it. This is particularly effective for clothing, jewelry, and home goods.

By focusing on creating compelling titles and descriptions and investing effort into high-quality photography, you can significantly improve the attractiveness of your Etsy listings to potential buyers.

How to Price Items in Your Etsy Shop

Pricing items in your Etsy shop involves a careful balance between covering your costs, ensuring a profit, and remaining competitive in the marketplace.

Here are some steps to help you set the right price for your Etsy products:

• Calculate Your Costs : Start by calculating the total cost of producing each item. This includes materials, labor, packaging, and any other costs directly associated with the creation and preparation of your product for sale.
• Consider the Market : Research similar products on Etsy to understand the price range for items comparable to yours. Note the pricing of products that are similar in quality, size, materials, and craftsmanship.
• Factor in Etsy Fees : Etsy charges a listing fee, a transaction fee, and a payment processing fee. Ensure these costs are considered in your pricing to maintain profitability.
• Determine Your Profit Margin : Decide on the profit margin you aim to achieve for each sale. This margin should be realistic, considering the market standards and your cost structure.
• Price for Shipping : Decide whether you will charge customers for shipping or offer free shipping and include the cost in your item price. Remember, shipping costs can significantly impact your pricing strategy and attractiveness to potential buyers.
• Evaluate Periodically : The market and your costs will change over time, so regularly review and adjust your prices as necessary. Keep an eye on the competition, and don’t be afraid to tweak your prices to stay competitive.
• Consider Offering Discounts : Think about offering discounts for multiple purchases or promotions during holidays to attract more customers. However, make sure that these discounts do not compromise your profit margins significantly.

Etsy Pricing Formula

Calculating your selling price can be simplified using the following formula:

Selling Price = (Cost of Production + Desired Profit) / (1 – Sum of Etsy Fees as Decimal)

To break this down:

• Cost of Production includes all direct costs such as materials, labor, packaging, etc.
• Desired Profit is how much profit you aim to make on each sale.
• Etsy Fees need to be converted to decimal form. For example, if the total Etsy fees are 8%, use 0.08 in your calculation.

Etsy Pricing Formula Example

Suppose the cost to produce a handmade necklace is $20, and you want to make a $10 profit on each sale. Etsy’s total fees sum up to 8% (0.08 in decimal).

Selling Price = ($20 + $10) / (1 – 0.08) = $30 / 0.92 = $32.61

Therefore, you should price your necklace at approximately $32.61 to cover your costs, Etsy fees, and achieve your desired profit margin.

Shipping Consideration:

If you decide to offer free shipping and the shipping cost is $5, include this in your cost of production:

Selling Price with Shipping = ($20 + $5 + $10) / (1 – 0.08) = $35 / 0.92 = $38.04

This formula ensures that your selling price covers the production costs, shipping (if applicable), Etsy fees, and achieves your desired profit.

By following these steps, you can set prices that not only cover your costs and desired profit margin but also align with market expectations.

Transparently communicating the value of your work and the quality of your products can justify your pricing to potential buyers, enhancing your success on Etsy.

Managing Inventory and Fulfillment

Once you start making sales, you need to ensure you can meet demand in your Etsy shop.

Etsy Inventory Tracking

• Manual Tracking : Ideal for Etsy sellers with a small inventory or unique, one-off items. This method involves manually updating inventory levels as sales occur and new items are added. It’s simple but requires diligence to avoid overselling.
• Spreadsheets : Suitable for sellers who are comfortable with tools like Excel or Google Sheets. This allows for a more organized approach compared to manual tracking, enabling sellers to keep tabs on inventory levels, costs, and sales data in one place. Customization is a key advantage here, though it can become unwieldy as inventory grows.
• Etsy’s Integrated Tools : Etsy offers built-in tools for inventory management that automatically update inventory levels as items sell. This is a convenient option for sellers who prefer an integrated solution, though it may lack the customization or advanced features of dedicated software.
• Inventory Management Software : Third-party software solutions are available for Etsy sellers who have a large inventory or sell across multiple platforms. These services can offer robust features such as real-time inventory tracking, integration with other sales channels, forecasting, and detailed analytics. Examples include QuickBooks Commerce (formerly TradeGecko) and Stitch Labs.
• Barcode Systems : For sellers with a high volume of products, especially those with similar items or variants, implementing a barcode system can streamline the tracking process. This involves assigning a unique barcode to each item or variant and using barcode scanners to update inventory levels accurately and efficiently.

Each inventory tracking method has its advantages and is best suited to different kinds of Etsy sellers, from those just starting out with a few handmade items to those managing extensive inventories across multiple platforms.

Shipping Your Etsy Products

Etsy provides tools to help you manage your shipping process.

Explore different carriers and their services to find what works best for your products.

Remember, packaging is part of the customer experience, so make it special.

Popular Shipping Companies in the US and Canada

When it comes to shipping your Etsy products, choosing the right carrier can greatly impact your business.

Here are several prominent shipping companies in the US and Canada that Etsy sellers commonly use:

• United States Postal Service (USPS) : Widely used for its comprehensive domestic services and competitive pricing for small packages.
• UPS (United Parcel Service) : Known for reliable delivery services, offer extensive domestic and international shipping options.
• FedEx : Offers a wide range of shipping services, including overnight shipping. Known for reliable service and package tracking.
• DHL : Particularly strong in international shipping services, DHL is a good option for sellers shipping products overseas.
• Canada Post : The primary postal operator in Canada, offering a variety of services for domestic and international shipping.
• Purolator : Popular in Canada for its reliable domestic shipping services and strong presence in the Canadian market.
• Chit Chats : An alternative shipping service that allows Canadian sellers to access U.S. Postal Service rates, significantly reducing shipping costs for packages going to the US or internationally.

Each of these companies offers a range of services tailored to different shipping needs, including options for expedited delivery, tracking, and cost-effective shipping for smaller items.

Choosing the right shipping partner is crucial for ensuring customer satisfaction and can also affect your profitability as an Etsy seller.

Packaging Solutions

Packaging not only protects your products during transit but also provides an opportunity to make a memorable first impression .

Unique, brand-aligned packaging can enhance the unboxing experience for customers, encouraging repeat business and social shares.

Here are a few places to find packaging supplies:

• Uline offers a wide range of packaging materials, from boxes and bubble wrap to more specialized items like gift packaging materials.
• EcoEnclose provides eco-friendly packaging options for businesses looking to minimize their environmental impact.
• Local supply stores often have basic packaging materials like boxes, tape, and bubble wrap, which can be useful for small, immediate needs.

Customer Service Excellence

Treat your customers like gold.

Offer refunds when necessary, respond to inquiries promptly, and be the seller you’d want to buy from.

Positive customer experiences lead to repeat sales and good reviews.

Best Tips for Customer Service on Etsy

To improve customer service on Etsy, try these strategies:

• Prompt Responses: Always aim to reply to customer inquiries and messages as quickly as possible. Timeliness shows that you value their time and business.
• Personalization: Personalize your communication with customers. Use their names and include personal touches in your packages, like thank-you notes, to make them feel appreciated.
• Clear Policies: Ensure your shop policies on returns, exchanges, and shipping are easily accessible and clearly stated to prevent any misunderstandings.
• Request Feedback: Encourage customers to leave feedback and reviews. Not only does this provide valuable insight into your products and services, but it also helps build your reputation on the platform.
• Resolve Issues Proactively: If a problem arises, address it proactively. Offer solutions or compromises when things don’t go as planned to maintain a positive relationship with your customers.
• Follow-Up: After a purchase, follow up with customers to ensure they’re satisfied with their order. This demonstrates your commitment to their satisfaction and can increase the likelihood of repeat business.
• Product Quality and Accuracy: Ensure your product listings are accurate and detailed, so customers know exactly what they’re purchasing. High-quality, clear photos, and detailed descriptions can reduce confusion and disputes.

Promoting Your Etsy Shop

To stand out among the numerous Etsy shops, effective promotion is essential.

Best Tips for Promoting Your Etsy Shop

• Utilize Social Media: Leverage platforms like Instagram, Pinterest, and Facebook to showcase your products. Regular posts, stories, and engaging content can attract a wider audience to your shop.
• SEO Optimization: Optimize your shop and listings for search engines both within and outside of Etsy. Use relevant keywords in your product titles, descriptions, and tags to improve visibility.
• Join Etsy Teams: Collaborate with other sellers by joining Etsy Teams. This can help you learn from more experienced sellers, participate in promotional events, and gain more visibility.
• Offer Promotions: Running sales or offering discounts can entice new customers and reward repeat ones. Limited-time offers can create a sense of urgency and increase sales.
• Engage with Your Community: Attend craft fairs, markets, and other local events. Networking in person can help you promote your shop and create a loyal local customer base.
• Create a Mailing List: Start a newsletter to keep past and potential customers informed about new products, promotions, and behind-the-scenes peeks into your shop.
• Advertise on Etsy: Consider using Etsy’s advertising tools to promote your listings. Etsy Ads can increase your shop’s visibility to shoppers actively searching for products like yours.
• Quality Photography: High-quality, attractive photos of your products are crucial. They can make your listings stand out and give customers a clear understanding of what you’re offering.

Implementing these strategies can help increase your Etsy shop’s visibility, draw in more customers, and ultimately, boost your sales.

Optimizing Your Etsy Shop for Success

Etsy SEO can be a game-changer for your visibility within the marketplace.

Mastering the Art of Etsy SEO

Research keywords that buyers are using to find products like yours.

Include those words in your product titles and tags to improve your shop’s discoverability.

Don’t forget to optimize your product descriptions as well.

Simple Steps for Mastering Etsy SEO

• Research Keywords: Begin by researching relevant keywords that potential buyers might use to search for your products. Tools like Google Keyword Planner or Etsy’s search bar can help identify popular search terms.
• Optimize Your Titles: Incorporate your main keyword at the beginning of your product titles. Make sure the titles are clear, descriptive, and appeal to potential buyers.
• Utilize Tags Effectively: Etsy allows you to use up to 13 tags for each listing. Use this to your advantage by filling all available tag spaces with relevant keywords, including long-tail keywords that are more specific.
• Enhance Your Descriptions: Write detailed and engaging product descriptions that naturally incorporate your keywords. Descriptions should provide all the necessary information a buyer needs to make a decision.
• Use Categories Wisely: Select the most accurate category for each item. This helps Etsy’s algorithm understand what you’re selling and improve your visibility in search results.
• Renew Listings Regularly: Regularly renewing your listings can give them a boost in search results. Consider renewing items that are seasonal, on trend, or in high demand.
• Gather Reviews: Encourage satisfied customers to leave positive reviews. High-quality reviews can improve your shop’s credibility and attract more customers.
• Analyze Your Performance: Use Etsy’s Shop Stats and Google Analytics to track your SEO performance. Look at which keywords and listings bring the most traffic to your shop and refine your strategy accordingly.

Analytics and Insights

Etsy provides tools for you to analyze your shop’s performance.

Pay attention to what’s selling and what isn’t and use that data to make informed business decisions.

How to Use Etsy Analytics and Insights: A Step-by-Step Guide

• Access Your Shop Stats: Log in to your Etsy account. Go to the Shop Manager and select “Stats.” This is where you’ll find a comprehensive overview of your shop’s performance, including traffic, sales data, and how buyers are finding your listings.
• Review Your Traffic Sources: Identify where your shop’s traffic is coming from. The Stats page provides insights into different traffic sources, such as direct searches on Etsy, social media referrals, or external search engines. This information is crucial for understanding how buyers discover your shop.
• Analyze Listing Performance: Look at which listings are performing well and which are not. Pay attention to views, favorites, and sales numbers for each listing. Understanding the performance of individual listings can help you determine what items are popular with buyers and why.
• Check Keyword Performance: Etsy’s analytics tools allow you to see which search terms and keywords are driving traffic to your shop. Use this information to refine your listing titles, tags, and descriptions, ensuring they are optimized for search.
• Monitor Your Conversion Rate: Calculate your conversion rate (the percentage of visits that turn into purchases) to gauge your shop’s effectiveness at converting visitors into buyers. A low conversion rate could indicate that you need to make adjustments, such as improving your product descriptions or photos.
• Set Goals and Track Progress: Use the insights you’ve gathered from Etsy analytics to set specific, measurable goals for your shop. For instance, if you want to increase traffic from social media, consider launching a social media marketing campaign. Regularly check your stats to monitor your progress towards these goals.
• Adjust Your Strategy: Based on the insights you gain, make informed decisions about your shop’s strategy. This could involve focusing on improving listings that have high views but low sales, tweaking your SEO strategy, or exploring new marketing channels.

Keeping Up With Trends on Etsy

Trends come and go, and it’s important to adapt.

Stay informed about what’s popular in your niche and be prepared to update your Etsy shop to reflect changes in demand.

• Subscribe to Etsy Newsletters: Sign up for Etsy’s newsletters to receive updates directly from the platform about trending items, seasonal picks, and insights into what buyers are currently interested in.
• Follow Etsy on Social Media: Etsy’s official social media accounts often highlight trending products, seller success stories, and important updates. Following these can provide valuable insights into what’s currently popular.
• Join Etsy Seller Forums and Groups: Engaging in communities of Etsy sellers can be a great way to exchange ideas, share experiences, and stay informed about the latest trends and changes on the platform.
• Use Etsy’s Trend Reports: Etsy periodically releases trend reports which detail what buyers are looking for. These reports can be a goldmine for understanding shifts in consumer preferences.
• Research Using Etsy’s Search Bar: Regularly typing popular items or terms into Etsy’s search bar will show you what’s trending. Etsy also displays popular related search terms that can give ideas for new products or adjustments to existing listings.
• Keep an Eye on the Competition: Look at Etsy shops selling similar items to see what’s working for them. Note any shifts in their product lines or marketing strategies that could indicate a change in trends.
• Attend Etsy Workshops and Webinars: Etsy often hosts workshops and webinars for sellers. These can be an excellent source of information on best practices, upcoming trends, and how to adapt your shop to meet changing buyer demands.

Managing Finances and Taxes

Start organizing your finances now , not just at tax season. Keeping your Etsy shop successful means staying on top of your financials.

Best Tips for Managing Finances and Taxes for Your Etsy Shop

• Keep Personal and Business Finances Separate: Open a business bank account and use a dedicated credit card for business expenses. This makes tracking income and expenses much easier and more accurate.
• Maintain Detailed Records: Keep meticulous records of all transactions, including sales, expenses, and receipts. Tools like spreadsheets or accounting software can be invaluable for this purpose.
• Understand Your Tax Obligations: Familiarize yourself with the tax laws applicable to online businesses in your region. This includes sales tax collection and submission, as well as income tax obligations.
• Set Aside Money for Taxes: Regularly set aside a portion of your earnings for taxes. This prevents the scramble to find funds when taxes are due and can help avoid potential penalties.
• Consider Quarterly Tax Payments: If you’re in a jurisdiction that allows or requires it, making estimated tax payments quarterly can help manage the financial burden more evenly throughout the year.
• Hire a Professional: Consulting with a tax advisor or accountant who is familiar with e-commerce can provide tailored advice and help you avoid costly mistakes.
• Use Financial Management Tools: Leverage financial management apps or software designed for small businesses. These can automate many aspects of financial tracking and tax preparation.
• Regularly Review Your Finances: Schedule monthly finance reviews to monitor your shop’s financial health. This will help you make informed decisions about scaling, investing in new products, and managing expenses.

Handling Customer Feedback and Reviews

Your reputation is everything on Etsy. Whether good or bad, feedback is an opportunity to learn and grow.

The Importance of Reviews on Etsy

Reviews on Etsy serve as social proof, building trust and credibility for your shop.

Positive reviews can significantly enhance your shop’s reputation, encouraging more customers to make a purchase.

On the flip side, even negative reviews offer the chance to showcase your customer service skills and commitment to satisfaction.

Handling Negative Reviews

• Respond Promptly and Professionally: Address the customer’s concerns without being defensive. A thoughtful response can turn a negative experience into a positive one.
• Offer Solutions: Whether it’s a refund, exchange, or a discount on a future purchase, find a way to make things right.
• Learn from Feedback: Use negative reviews as a learning opportunity to improve your products and customer service.

Encouraging and Handling Positive Reviews

• Say Thank You: Show appreciation for positive reviews with a simple thank you message. This can encourage repeat business and solidify a positive relationship.
• Feature Reviews: Consider showcasing positive reviews in your shop updates or social media. This not only highlights happy customers but also attracts new ones.
• Encourage Reviews: Remind customers to leave a review after their purchase. A follow-up thank you note or message can be a gentle nudge for them to share their experience.

Scaling Your Etsy Business

Once you’ve found your footing, it’s time to grow and expand your Etsy shop.

When to Scale Your Etsy Business

The decision to scale your Etsy business should come after careful consideration of several factors.

Ideally, you should consider scaling when:

• Consistent Sales Patterns Emerge: You’re experiencing steady or increasing sales over a significant period.
• You Have the Capacity to Produce More: You can meet higher demand without compromising on the quality of your products.
• Market Demand Increases: There is a growing interest in your product category, indicating a ripe opportunity for expansion.

Considerations Before Scaling

Before you decide to scale your Etsy business, there are several crucial aspects to consider:

• Inventory Management: Can your supply chain handle increased orders? Ensure you have reliable suppliers and an efficient system to manage stock levels.
• Financial Resources: Assess your financial health. Do you have the resources needed to invest in scaling, or will you need financing?
• Customer Experience: Maintaining a high level of customer satisfaction is vital. Consider if scaling will impact your ability to deliver quality products and customer service.

How to Scale Your Etsy Business

Scaling your Etsy business involves a strategic approach to increase your shop’s output and sales without compromising quality or customer service.

Here are effective strategies for scaling your Etsy shop:

• Automate Processes: Use tools and software to automate parts of your business, such as inventory management, marketing, and customer communications, to handle increased volume efficiently.
• Expand Your Product Line: Introducing new products or variations can attract new customers and provide more options to existing ones.
• Outsource Non-Core Activities: Consider outsourcing tasks like shipping, manufacturing, or customer service to focus on design and business development.
• Invest in Marketing: Increase your shop’s visibility by investing in Etsy ads, social media marketing, or collaborating with influencers in your niche.
• Optimize for Etsy SEO: Ensure your listings are optimized with relevant keywords, high-quality images, and detailed descriptions to improve visibility in search results.

Starting an Etsy shop is an exciting adventure that requires time, dedication, and a willingness to learn.

Whether you’re looking for a creative outlet or a sustainable business, Etsy offers both.

Remember, the key to success on Etsy lies in the details: in the craftsmanship of your products, in the energy you invest in your shop’s appearance, in the care you take with your customer service.

It’s time to take your first step into the DIY marketplace. Happy selling!

Hello! I’m Chantal from Atlantic Canada. With 15 years of experience in online marketing, I’ve built and sold three small online businesses. Now, I’m here to help solopreneurs create successful online businesses & Etsy shops, and generate passive income streams.

How to Start an Etsy Shop

Angelique O'Rourke

8 min. read

Updated May 10, 2024

Free Download:  Sample Etsy Business Plan Template

Have you ever wondered how to start an Etsy shop? If you’re someone who is both creative and entrepreneurial, you might be considering starting an Etsy shop as a way to monetize a craft that you truly love doing. If so, you’ve come to the right place.

Etsy is a popular eCommerce platform for everything handmade, from custom jewelry to baby clothes. It’s a robust online marketplace, with more than a million active sellers and over a billion dollars in sales in 2014. If you’d like a slice of the pie, it’s wise to do a bit of homework to figure out how to stand out from the crowd.

To help get you started, I spoke to Etsy sellers from around the globe, to get their advice on how to start an Etsy shop. Each of them shared their experiences and their thoughts on what makes an Etsy shop great. From these answers and from a few other resources, I’ve compiled a list that will help you put your best foot forward.

• 7 steps to starting an Etsy shop

1. Make sure Etsy is the best platform for you

As with any business, whether you’re  starting a franchise  or opening a cat cafe,  doing your research is an essential first step you should never skip.

And one of these first considerations should be: Is starting an Etsy shop right for me? Where am I most likely to meet my customers?

You can read more about Etsy products and policies on their very informative blog. One big factor to consider is that a successful Etsy store takes time to maintain, so be sure that you can commit to regularly spending time on this venture.

This is an eCommerce business; it won’t make you money if it’s sloppily created or neglected after launch.

2. Research your product

In addition to researching the Etsy platform, before you dive into starting an Etsy shop, make sure to  research your product.

Ask vital questions such as “Who are my competitors? Who is my target market?”  You don’t want to launch with the wrong idea only to realize you need to go in a different direction and have to re-do a bunch of the work. Save yourself the energy by developing a strategy right out of the gate, including a plan B or a couple of backup products if things aren’t going as well as expected.

This is actually a good time to consider creating a lean business plan so that you have the flexibility to change as you go.

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3. Think SEO and social media strategy

It isn’t just about creating the shop—part of maintaining it successfully has to be focused on actually getting pageviews, and being discoverable through search.

Google Keyword Planner is always a good place to start, you can use it to see what search term people are using to find a site like yours. Another huge aspect of being discoverable online is choosing the optimal name for your business. 

Once you’ve done that, sign up for all of the pertinent social media platforms that you can regularly use and update. The ones that have a visual emphasis are always a good idea for Etsy sellers: Instagram, Pinterest, and Vine are very popular. But don’t forget the great reach that sites like Facebook have!

4. Have high-quality professional photos to post

The Etsy sellers that talked to me couldn’t stress this enough, I lost count of how many people mentioned the importance of excellent photography in making sales on Etsy.

Your photos are your products here in a sense because this is the primary avenue that customers will use to decide if they’d like to buy. They can’t hold or see first hand how great your product is, so the photos will have to do the convincing. Don’t forget to use a compelling photograph for your avatar as well!

5. Create a solid, scalable shipping and returns policy

Your store must be customer friendly and consistent to be successful. Make sure your policy is clear, timely, and that you stick to it every time. You want to achieve a high rating, and providing excellent and expedient customer service is a great way to get there.

6. Have a trusted advisor or friend review the shop

Don’t bring in someone who won’t tell it like it is; you want to receive honest and constructive feedback. Make sure that they find your shipping policy, return policy, product descriptions, images, and about page up to snuff.

7. Maintain the integrity of a successful launch

Once you’ve got your Etsy shop up and running, there are ongoing aspects of operating your business. Stay on top of things like refunds, returns, SEO strategy, social media presence, and responding to reviews.

What some people forget about starting an Etsy shop is that being an Etsy seller is being a business owner. So, staying active and involved in your business is key to success.

• Tips on starting an Etsy shop from Etsy sellers

Get to know the community:

Many people communicated to me that Etsy is really a world of its own; sellers and customers bond, write reviews, help each other out in forums, and generally have a strong and close-knit online community.

This can be a great advantage, but it will serve you well to learn the rules of the road. Derek Coleman, who runs the Etsy shop Lonehood , said: “Etsy is all about the community and the community influences others. Simply put: if a customer has a bad experience the word will start to spread and your ratings will show this. Ratings are very important. If you have excellent customer service, the community will also know of this and it will be reflected in your reviews.”

Understand the platform:

Michelle Gannon of The Language Playground shared an early mishap she had on Etsy: “Once one copy of my digital product was sold, it was gone from the shop and no one else could buy it. I had no idea until a few days later when I checked into my store to see how things were going and realized that my shop had no products in it. Luckily, it does not cost much for shop owners to post products again so the mistake was not huge.”

For a rundown on fees and listing products, look here.

Listen to customer feedback:

Stephanie Maslow of Metalicious gave us this tip. “Some of my best sellers have been from collaborations with my customers.” And, among her tips? The all-important role of good photography in an Etsy business. Surprise, surprise.

Reward loyal customers:

These are the people who are keeping you successful and spending their hard-earned money on your work.

“Offer your clients discounts on all future purchases to encourage repeat shopping. Make sure your buyers know how much you love them, by telling them so with discounts. Repeat shoppers are the best. I have a few clients who come back every year to do their holiday shopping. That’s the best compliment,” says Brooke Malloy of Etsy shop SageLike.

Project a strong brand:

“Make sure your brand is always represented properly. Customers on Etsy provide excellent feedback and can help new businesses hone their customer service experience which makes Etsy great for market testing and startup scalability.Your product may not be the right item for Etsy, but it doesn’t hurt to get it on there to find out, but still take it seriously. Remember that even if potential customers aren’t clicking ‘add to cart’ on your item on Etsy, if handled professionally, you may have made an impression, be certain it’s a lasting one,” says Jed Darland, founder of Plant Picket.

Have measurable goals, and track them:

Dana Reich of SweetDees Closet told me that a good goal to start with is “about $10 worth of sales for every 100 views your shops and listings get. “  From there, you can track your progress and make changes as needed, whether it’s adjusting the goal to reflect your variations in pricing, or boosting your SEO strategy to get more eyes on your shop.

“Make sure your Etsy tags and keywords are those which people can easily find you, both on Etsy and when searching for a particular item on Google. The more items you have in your store with great SEO, the more people will be able to find you and the more sales you’ll generate,” she says.

• Etsy-related resources

If you’re looking for even more info on how to start an Etsy shop, or you’re still not sure if starting an Etsy shop is right for you, check out these resources.

Reading material:

Etsy offers a detailed archive, The Seller’s Handbook, available for perusal with information right from the horse’s mouth.

Moz, a software company, has a great introductory SEO guide.  I’ve used this for reference myself in the past. If you know nothing about the subject, start here.

Sample plans:

Our own library of sample business plans is always a good resource as well, regardless of whether or not you’re starting an online shop. We have over 550 different sample business plans represented. Here are several eCommerce specific options:

• Junior’s Clothing Business Plan 
• Outdoor Clothing Business Plan
• Nutritional Supplements Business Plan 

The independent seller:

Etsy hired a third party research firm to gather data on the type of people who sell on their site. You can check out the report here.

It’s a fascinating look into a group of people, over two-thirds of whom are women, who sell their goods primarily from home and aren’t necessarily looking to be acquired by a larger company or hugely expand their operations, but who value their self-contained businesses.

If that sounds like a group you’d like to join, starting an Etsy shop could be for you.

Angelique is a skilled writer, editor, and social media specialist, as well as an actor and model with a demonstrated history of theater, film, commercial and print work.

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As a global company based in the US with operations in other countries, Etsy must comply with economic sanctions and trade restrictions, including, but not limited to, those implemented by the Office of Foreign Assets Control ("OFAC") of the US Department of the Treasury. This means that Etsy or anyone using our Services cannot take part in transactions that involve designated people, places, or items that originate from certain places, as determined by agencies like OFAC, in addition to trade restrictions imposed by related laws and regulations.

This policy applies to anyone that uses our Services, regardless of their location. It is up to you to familiarize yourself with these restrictions.

For example, these restrictions generally prohibit, but are not limited to, transactions involving:

• Certain geographic areas, such as Crimea, Cuba, Iran, North Korea, Syria, Russia, Belarus, and the Donetsk People’s Republic (“DNR”) and Luhansk People’s Republic (“LNR”) regions of Ukraine, or any individual or entity operating or residing in those places;
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• Any goods, services, or technology from DNR and LNR with the exception of qualifying informational materials, and agricultural commodities such as food for humans, seeds for food crops, or fertilizers.
• The importation into the U.S. of the following products of Russian origin: fish, seafood, non-industrial diamonds, gold, and any other product as may be determined from time to time by the U.S. Secretary of Commerce.
• The exportation from the U.S., or by a U.S. person, of luxury goods, and other items as may be determined by the U.S. Secretary of Commerce, to any person located in Russia or Belarus. A list and description of ‘luxury goods’ can be found in Supplement No. 5 to Part 746 under the Federal Register.
• Items originating outside of the U.S. that are subject to the U.S. Tariff Act or related Acts concerning prohibiting the use of forced labor.

In order to protect our community and marketplace, Etsy takes steps to ensure compliance with sanctions programs. For example, Etsy prohibits members from using their accounts while in certain geographic locations. If we have reason to believe you are operating your account from a sanctioned location, such as any of the places listed above, or are otherwise in violation of any economic sanction or trade restriction, we may suspend or terminate your use of our Services. Members are generally not permitted to list, buy, or sell items that originate from sanctioned areas. This includes items that pre-date sanctions, since we have no way to verify when they were actually removed from the restricted location. Members are also generally not permitted to ship items to or from sanctioned areas. Etsy reserves the right to request that sellers provide additional information, disclose an item's country of origin in a listing, or take other steps to meet compliance obligations. It is important that members provide complete and accurate information regarding the origin of items on the Etsy marketplace to ensure compliance with sanctions programs. We may disable listings or cancel transactions that present a risk of violating this policy.

In addition to complying with OFAC and applicable local laws, Etsy members should be aware that other countries may have their own trade restrictions and that certain items may not be allowed for export or import under international laws. You should consult the laws of any jurisdiction when a transaction involves international parties.

Finally, Etsy members should be aware that third-party payment processors, such as PayPal, may independently monitor transactions for sanctions compliance and may block transactions as part of their own compliance programs. Etsy has no authority or control over the independent decision-making of these providers.

The economic sanctions and trade restrictions that apply to your use of the Services are subject to change, so members should check sanctions resources regularly. For legal advice, please consult a qualified professional.

Resources: US Department of the Treasury ; Bureau of Industry and Security at the US Department of Commerce ; US Department of State ; European Commission

Last updated on May 15, 2024

Setting up an Etsy Business: How to start an Etsy shop

Ever since its launch in 2005, Etsy has grown to become one of the biggest marketplaces in the world, boasting over 55 million members and more than 50 million unique items for sale. With such a vast potential reach, it is a great time to set up your Etsy business and start an Etsy shop.

Below, we guide you through setting up your first Etsy shop and discuss the basics of the marketplace and how you can establish a successful Etsy business.

On this page:

What is Etsy?

How much does it cost to sell on etsy, how to open an etsy shop, how to run your etsy business successfully, tips for successfully selling on etsy.

Etsy is a unique marketplace specializing in vintage items, craft items, and artistic goods that you won’t find easily in other stores.

Buyers use this e-commerce platform to look for handcrafted products more than commercially sold goods from small and big brands.

Etsy is also an excellent platform for artists and art shops to showcase their skills and creations to a broader audience without having to create their website.

It is a store that offers the charm of art and craft in a convenient marketplace like eBay. It hosts a vast category of vintage items, as old as over 20 years, to appeal to those who like to collect historic, antique goods.

Users who browse Etsy listings can choose from handcrafted art pieces, handmade products for home and personal use, custom-made toys, made-to-order items, and vintage goods.

The platform offers a storefront where sellers can list their items by paying a charge. You can find a wide variety of collector products for an affordable price here.

Etsy occupies a specific niche that makes it the top destination for collectibles and art products globally. It is important to note that this company does not make any items.

RELATED: Selling on Etsy vs eBay vs Amazon: Which is the Best Online Marketplace?

It instead works as a mediator connecting buyers and sellers, offering them a fully-functional marketplace. It is based in Brooklyn, from where it executes the daily operations.

Etsy seller fee is one of the most significant aspects of getting started with the platform. Like any other e-commerce platform, Etsy charges a seller fee associated with listing and selling.

Though you don’t pay anything to register in the shop, you will need to pay to do business on the marketplace. If you use Etsy Payments, the store will deduct the fees automatically from your funds every month.

Any additional charges you owe to the store can be paid through a credit card if added to your payments.

However, if you live in a country where Etsy Payments are not supported, you will need to pay the monthly bill on the marketplace. Etsy charges different types of fees from the sellers:

Listing Fees

The primary charges paid to Etsy are those for listing the items on the shop. The store adds $0.2 to your payment account whenever you list an item. You pay this fee for each listing, whether or not it sells.

For this listing fee, the product stays in the store for four months, after which you need to renew it for an additional charge of $0.2 if you wish to keep the listing.

Transaction Fees

You pay a transaction fee (5% of the total cost of the item) to Etsy whenever an item is sold. The transaction fee is paid in your currency.

In case your payment currency is not the same as the listing currency, the company will convert the charges to your payment currency based on the current conversion rate.

Etsy also charges 2.5% fees for the currency conversion whenever required.

Payment Processing

If you choose to use Etsy Payments to accept online payments for your sales, the platform charges you a payment processing fee per transaction whenever you sell something. This fee depends on where your bank account is located.

Moreover, if you live in an area subject to value-added tax, Etsy will involve this tax in its payment processing and other types of fees.

Additional Charges

Apart from the above-discussed charges, Etsy can levy some other additional fees from you in some cases. The first is the fees associated with shipping labels that you buy through Etsy.

The charges for shipping labels can vary depending on the location and other factors. Secondly, there is a Square manual fee per transaction associated with selling in-person on Square.

Etsy also incurs some other charges like those associated with add-on services like ads. To use Etsy ads, you pay for the campaign on a per-click basis.

Moreover, a paid subscription plan on the platform – Etsy Plus- costs $10 per month and other fees. This plan offers a variety of advanced tools and features to help you manage and expand your business in this marketplace.

Though opening an Etsy shop involves multiple steps, the platform makes it easy for sellers to set up their online shop and make money.

It boasts a user-friendly interface that guides the seller through the entire process and intuitive features that remove the complexity of starting a business on Etsy.

RELATED: How to write an Etsy Business Plan

Register for an Account

The first step of building a business on Etsy is registering an account. It is as easy as clicking on the ‘Sell on Etsy’ link and entering a few basic details like name, email, and password.

The service also gives you a chance to create an account using your existing account on Facebook, Google, or Apple.

Moreover, if you already have an account with Etsy, you can log in and create your store by clicking on ‘Open your Etsy Shop.’

Set your Shop Preferences

Once you register an account and open the shop, you are taken to the screen for ‘Shop Preferences,’ where you can choose the basic settings for your Etsy store.

The first thing you set is the default language in which your items are described. You can then change the settings like currency for listing and your home country. Next, Etsy also asks you whether you want to sell part-time or full-time.

Select your Shop Name

When deciding your Etsy shop name, you can use your creativity to its best. Your shop name should be unique yet easy to remember and reflect what it offers.

It can be anything, as long as it meets the guidelines set by the marketplace. If you choose a name already taken, Etsy suggests other similar names available.

Here are some tips that help you pick the right shop name on Etsy.

Abstract Names – Such names can add a touch of uniqueness and make it easier for customers to find your store.

Suggestive Names – Use words and phrases that describe what you sell and represent your brand to make great names.

Your Name – When you use your name for the shop on Etsy, it becomes easy to change your products. While it is harder to find a shop name with just your name, you can add modifiers like ‘workshop’ and ‘studio’ to create a unique name.

Take some time to work on the shop name before launching it on Etsy because you can change it only once after starting.

If you have any plans of expanding the business to social media channels or a dedicated website, it is essential to do some research to make sure you can later find a domain name or business name matching your shop name.

See Etsy’s tips for naming your shop

Brand your Shop

The Etsy shop you create is one-of-a-kind because none other will sell the same line of goods as you. This is why you should have a unique brand identity.

Your identity is how your customers perceive you and your shop. Whether you pay attention to it, your shop already has a brand. And if you make thoughtful choices, you can benefit better.

RELATED: ECommerce Branding: 4 Steps you must take for Growing and Scaling your Ecommerce Brand

Shoppers can find most goods at Amazon, Target, and other stores but prefer Etsy for its certain goods with a history.

To make sales on the platform, you should create an identity that conveys the story behind your products and builds trust and confidence. Ask yourself some questions like:

• Who are your target customers?
• What makes your offerings unique?
• What are your brand values?
• What is special about your Etsy shop?
• What identity do you want the shop to showcase?

These answers will make the core of your brand. These brand ideas should inspire your Etsy store’s logo, name, cover photo, and other aspects.

A shop name should be unique, easy to remember, and brand-oriented. This would represent your business effectively and help you stand out from the competitors.

Remember to follow Etsy’s requirements for shop name, and you will come up with a short and interesting name that best describes your offerings.

The shop avatar is where the logo goes, and your brand should influence it. The type of fonts and images you select for the avatar decides whether your brand is casual or high-end. You can choose a complex logo to represent difficult handmade items. A minimalist logo best represents a simple style.

You should ensure that your logo represents your brand well and fits inside the platform’s square field.

Cover Photo

A valuable asset is the top of your Etsy shop, where your cover photo or banner goes. This aspect of your shop sets the visual appeal and works to differentiate the shop from others.

Etsy lets you select a small banner or a big cover photo for the area. A cover photo is a better choice as it is visible from smartphones and computers. A small banner can be seen only from a computer.

It is advantageous to have a well-designed cover photo or banner to make the shop more appealing while creating a sense of professionalism, credibility, and trust. The most reputed Etsy shops use the cover photo to promote their name and products.

Create Listings on the Shop

Your listings on the shop are the core of your business. Creating appealing listings can help you achieve many sales in the first few weeks of the launch.

But what does a compelling listing look like?

Every listing on Etsy has three parts – titles, photos, and descriptions.

How well you execute these decide how good your listing is. Here is how you can master these components for super-effective, eye-catching listings.

The titles of your listings define the products to potential customers. The idea is to think like a shopper and use words and phrases they may use while looking for an item you are selling.

This would help make your titles descriptive. Adding more information to the titles increases their chances of being found.

Moreover, a descriptive title helps the viewer learn more about the product at first look. Use the titles to show how your product is unique and how it improves their lives even before taking a deeper look.

Make sure you use relevant, descriptive words to highlight the features of your product in the title to get them shining.

Product photography can be highly effective and can determine the success of an Etsy store. Shopping in online stores is quite different from that in person. While a brick-and-mortar store allows the buyer to see and examine the product, it is impossible to touch or feel the items sold in stores like Etsy.

This is why strong product photography is crucial to eliminate the uncertainty common in such forms of shopping. Pictures that exhibit the products that align with the customers’ lifestyles make it easy to envision how it can benefit them.

Here are the recommended images you should consider including for any item you want to sell on Etsy.

• A clear picture of the item in a well-lit condition
• A photograph displaying different angles of the item to help viewers get a better idea
• An image exhibiting unique traits of the product, making the texture, color, and techniques of the product clear
• A photo that shows how big or small the product is. It is a good idea to style it with other well-known items or have models hold it in their hands

Try to include as many pictures as you would feel necessary to give viewers a complete idea of what it is and how it can help them.

Consider shooting in natural daylight instead of using a camera flash. Keep in mind that the photos should align with the target audience’s interests. Finally, see that the products shine in the pictures.

Description

The final step in creating a great listing is to write a fantastic product description. This component gives you the chance to describe the product story.

Make sure you include the details that make the product unique. For any handmade item, don’t forget to share the process of making it briefly.

Next, include information on how the product can fit into the life of the buyers and what benefits it can offer. Create a beautiful description of the product rather than just listing the features to see better results.

You can take a look at the product descriptions from your competitors to take inspiration on formatting and content.

Complete the Inventory and Pricing

Once you have created your listing, you can enter the details of your product inventory in your store. You can put in the number of items, price, SKU number, variations, and tax.

You can have product variations in terms of colors, sizes, and materials and have pictures corresponding to those variants.

Etsy then asks you to enter the shipping price of your product and relevant details like shipping services used, country of origin, processing time, costs, item dimensions, weight, etc. You can even choose to get the shipping price calculated by Etsy based on the item details.

Once you have opened your shop, you can set up ‘shipping profiles’ to be able to update items with the same shipping processes instantly.

Set your Payment Preferences

After adding your products, you will need to set up your payment preferences on Etsy. The first thing you need to set is how you prefer to accept payments for your products.

You can choose from money order, check, PayPal, and ‘other’ or go with ‘Etsy Payments,’ the primary payment method for sellers. This option lets you use credit and debit cards, store credit, Etsy gift cards, etc.

At the time, Etsy required that eligible sellers, based on the location, for Etsy Payments prefer the same. To use this method, sellers should enter settings like address and bank account details to start receiving payments from Etsy.

Talking about the billing, you may need to provide a credit card for identity and payment of fees. U.S. sellers can choose to enrol in auto-billing, where Etsy charges the selling and other fees automatically so that you need not worry about any monthly payments.

RELATED: Starting an Etsy Shop Checklist

Optimize and Market the Shop

Once you have opened your online shop, you can get started with selling. It is not as simple as an offline store; a digital shop must be appealing, easy to locate, comprehensive, and up-to-date.

Let’s discuss how you can make sure your Etsy shop runs successfully once opened.

Add photo and description

Your store’s profile is where visitors learn about the business and you as an owner. Use the bio to describe all you want the public to know about you and the shop.

You can share something about your background, qualifications, and interests and tell your mission, the story behind your offerings, and your unique traits.

Set the Policies

In this section, you try to answer your customers’ concerns about the production, shipping, and payment processes.

You should inform an estimated processing and shipping time for your products to give buyers an idea of how quickly they can expect to receive the orders.

You should also mention the return and exchange policy and the payment methods you support. In case you have selected ‘Other’ in your payment setting, you will need to add information about this payment method.

Add ‘About’ Section

Much like a personal bio, Etsy allows you to have a bio for your store and gives you a limit of 5000 words to describe your business to your customers. The marketplace focuses on genuineness and transparency, so you can be upfront about the story without worrying about traditional marketing writeups.

To appear more appealing to the customers, you can include pictures and videos of your working space, talk about people who help you make your products or run the store, and link your website or social media handles.

Create Sections

Consider grouping your products into categories to help buyers easily navigate the items. When you create sections, your products will appear on the left pane of the homepage with listings under categories for easy access.

The real work on Etsy begins after you have opened the shop. You should consider several aspects and work on them to ensure your new online business goes as expected and turns out to be profitable. Here are some of the most effective strategies to run your Etsy business successfully.

Plan Inventory Strategy

Launching your Etsy shop is the first step. But it is essential to plan well for what comes after opening to be able to run a successful online business.

The key to success is maintaining the shop properly, and a well-stocked shop has the best performance. Hobbyists may stock the inventory as and when they like, but entrepreneurs serious about making money from Etsy selling should plan about stocking.

There are three different categories of shops on Etsy, each having its stock maintenance requirements.

Vintage Items

If you choose to sell vintage items in your Etsy shop, you may already have a collection of items to be sold. But, at some time, you will run out of stock. This is where you should shop for new items and invest in your business. It is good to set a shopping schedule to keep things running smoothly.

Though it is not easy to find high-quality vintage items, you must acquire new items consistently to ensure that you don’t end up in a drought. A well-planned schedule also allows you to handle your purchase expenses over time, ensuring you can quickly cover the investment.

Handmade Goods

If you are engaged in making unique handcrafted items, they will surely give you more joy and the most difficult to keep stocked. You can add some staples that can be quickly made to the more time-consuming products to keep your inventory stocked up.

Another idea is to create an Etsy shop with custom listings. These made-to-order listings are great because you need not invest time or effort until you get paid for the product.

Crafting Supplies

Based on your experience level, you might already have a good stock of crafting supplies to keep your shop going. However, if you don’t have a large inventory, you can consider entering into wholesaler relationships to sell more and earn a profit.

RELATED: How to Open a Second Etsy Shop?

Plan Shipping

Shipping is an integral part of running an online business on Etsy. There is no need to wait till the first sale to figure out your shipping strategies. Your customers already expect top-notch service from you. You should plan ahead of time for your shipping to ensure your customers don’t have to wait for the order.

Fortunately, Etsy prioritizes shipping planning for sellers and offers a comprehensive system to help them ship quickly. You can use advanced tools available on Etsy to perform some of the most important jobs like printing shipping labels, tracking orders, and calculating shipping costs right from your shop.

Apart from this, focus on how you can deliver a personalized shopping experience. Pay attention to packaging material to ensure your buyer has a wonderful unpackaging experience and the item stays protected during transit.

Think about including a short personal note, a small gift, or a discount coupon to take the experience to another level. Whatever you do, stay true to your shop!

Market Your Etsy Shop

Simply launching a shop on Etsy does not mean sales and success. It may take some time and effort to build a loyal customer base and an online presence. However, there are several simple and effective ways to market your shop for quicker growth.

Ask for Reviews

Ask your friends and family to purchase your products and leave their honest reviews as you start. Online shoppers rely on reviews for safety in their online shopping. As a new shop, you might not have any reviews. Your friends and family might support your venture by sharing their reviews.

Word of Mouth

Any business strives for strong word-of-mouth marketing. You can benefit from a refer-to-a-friend campaign or even a discount coupon. The coupon can be applied to the first purchase by a friend you’ve referred.

You can further make the deal exciting by offering the original customer a discount on the next order if the referred friend makes a purchase.

Social Media

As a new digital business, you may want to benefit from the easy exposure social media marketing facilitates. Social media helps keep your customers updated about products, sales, and policies. It also allows building relationships with customers and incorporating trust among prospects.

A presence on Facebook and Twitter would help build a loyal audience and help new customers know you and your shop.

RELATED: How to Create a Successful Social Media Campaign

Fortunately, Etsy makes it easy to leverage the power of social media with a built-in tool that lets you update all the social media channels with products, announcements, listings, milestones, reviews, or anything else you would want to promote.

People prefer Etsy over others because of the connection to the business story. Use the social platforms to share the story for free and increase your sales.

Search engine optimization improves the shop’s visibility on platforms like Google and helps drive sales. The SEO techniques depend on your target platform, and Etsy has its tactics. It all comes down to keyword research.

RELATED: Top 5 Google tools to help you grow your small business

Try to analyze what keywords people are searching for in different categories and use the most relevant keywords to help users find your products in their search results.

Though you don’t need a website to run an Etsy shop, it is a great tool to help your business grow. In this digital era, people give more credibility to businesses with a website.

If a customer tries to compare and decide between two similar shops on Etsy, one with a professionally designed business website indeed gets an edge over the other.

Apart from credibility, a website gives the customers another way to find your products. It also improves your chances of finding customers not on Etsy, expanding your reach.

A simple, easy-to-navigate website is all you need for promotional benefits. You don’t need to add e-commerce capabilities to the site; just direct the users to your Etsy shop.

To get the most out of your website, ensure the design is an obvious extension of the Etsy shop. Any visitor should quickly identify that it is the same business.

Ensure consistency by featuring your Etsy shop logo and name on the website, using the same colors from the logo and banner, sharing the same pictures and descriptions of products, and matching the voice on the website to that you use in the store.

Now that you know how to set up and optimize your Etsy shop, you should work on driving sales and boosting your visibility as a business. Here are some valuable tips that help sell successfully on Etsy.

Use Professional Product Photography

People want to see, touch, and feel the products before buying them. Therefore, you must provide your potential customers with stylish, well-exposed images shot from several angles. Etsy offers an app where you can upload pictures from your phone and make adjustments.

There are two main types of photography shots you should consider for your product. The first is hero shots that are close-ups of the products with a simple background. These are the main pictures of the product and should be captured in high resolution to let users zoom in.

Another type of photography shot is the lifestyle shot showing how a person uses the product. Here, the background is emphasized.

A great way to achieve a balance is to mix both styles and capture shots. Etsy permits a maximum of ten photos, so you should use them all to drive more sales.

Organize the Shop

Having great product photos is not enough to get guaranteed customers to the shop. The way you present the products in the store is also essential. Organizing the shop is key to making a good impression on buyers who come to the store.

Listing the products randomly doesn’t bring confidence to your shop. It is necessary to put the items on the list in a specified order.

A seller should curate the shop thoughtfully, organize them into easy-to-navigate sections, and write detailed descriptions for the products to show the effort and commitment put into the business and the quality of the items.

On the other hand, a random collection shows the buyers that the shop owner has not put much effort and time into the store organization.

Make the Store Searchable

As discussed above, SEO on Etsy is a great way to make the store easy to find and drive customers. The platform has a dedicated SEO tool with rules that you should follow to do it right.

You should ensure that the title you select suits the product and includes relevant keywords. You should use maximum keywords in the shop name, product titles, tags, sections, and descriptions.

RELATED: How to Successfully Sell on Etsy?

Price the Products Right

Like any other business, your Etsy shop demands that you price the products competitively. While this will help your shop increase profit, it is a challenging thing to do. Fortunately, Etsy offers some tools and features for pricing the products.

There is no need to short sell. You can price the items to cover labor, material, production, and more expenses. The price should also align with the quality of your products.

Remember that Etsy is known to offer affordable buying options. So it may be beneficial if you tried to keep the prices low to avoid turning away the masses. Moreover, there are several fees Etsy levies from sellers, so you should account for these charges when pricing the products.

Record the Financial Details

An effective bookkeeping tactic helps understand what direction the Etsy business heads. Even if you are operating an Etsy store as a side business, you should consider keeping your business and personal finances different.

The best way to accomplish this is to have a dedicated credit card for the Etsy expenses. Keeping a record of your finances would also help you set targets and understand whether you incur a profit or a loss. The better you are updated on the financial numbers, the more informed decisions you can make.

Use Analytics

Several practical analytics tools help keep track of your Etsy business. Some of the items may be moving more than others.

Based on these data, you may want to increase the stock of high-performing items and drop non-performing ones. Tracking your store’s performance also helps you improve the quality of the products and customer service for a better customer experience and reviews.

RELATED: What are the Pros and Cons of selling on Etsy?

Selling on Etsy is pretty simple with a user-friendly interface. However, the real work starts after you have launched the store. You need not panic if the store opens to a little traffic. Your Etsy shop may need some time to build a fan base like any other business.

Once you have made your first sale, continue interacting with the customers by responding quickly to messages, asking for feedback, and addressing their concerns.

You enjoy treating your customers well, but you also get amazing reviews that convey your trustworthiness and credibility to other buyers.

With millions of potential buyers and the ability to showcase your unique products to the world, Etsy is the right place to start a profitable, satisfying online business. We hope this guide helps you make the most out of this platform and its perks.

Pia has consulted for a number of digital startups and small businesses in Asia before coming to the UK. Pia writes about a wide range of SaaS and B2B products, including trends and issues on e-commerce, accounting and customer service software. She’s also covered a wide range of topics in business, science, and technology for websites in the U.S., Australia and Singapore.

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Cloud computing security issues and challenges

Helping our customers through the CrowdStrike outage

Jul 20, 2024 | David Weston - Vice President, Enterprise and OS Security

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On July 18, CrowdStrike, an independent cybersecurity company, released a software update that began impacting IT systems globally. Although this was not a Microsoft incident, given it impacts our ecosystem, we want to provide an update on the steps we’ve taken with CrowdStrike and others to remediate and support our customers.  

Since this event began, we’ve maintained ongoing communication with our customers, CrowdStrike and external developers to collect information and expedite solutions. We recognize the disruption this problem has caused for businesses and in the daily routines of many individuals. Our focus is providing customers with technical guidance and support to safely bring disrupted systems back online. Steps taken have included:  

• Engaging with CrowdStrike to automate their work on developing a solution.   CrowdStrike has recommended a workaround to address this issue and has also issued a public statement. Instructions to remedy the situation on Windows endpoints were posted on the Windows Message Center .   
• Deploying hundreds of Microsoft engineers and experts to work directly with customers to restore services.   
• Collaborating with other cloud providers and stakeholders, including Google Cloud Platform (GCP) and Amazon Web Services (AWS), to share awareness on the state of impact we are each seeing across the industry and inform ongoing conversations with CrowdStrike and customers.  
• Quickly posting manual remediation documentation and scripts found here .
• Keeping customers informed of the latest status on the incident through the Azure Status Dashboard here .  

We’re working around the clock and providing ongoing updates and support. Additionally, CrowdStrike has helped us develop a scalable solution that will help Microsoft’s Azure infrastructure accelerate a fix for CrowdStrike’s faulty update. We have also worked with both AWS and GCP to collaborate on the most effective approaches.    

While software updates may occasionally cause disturbances, significant incidents like the CrowdStrike event are infrequent. We currently estimate that CrowdStrike’s update affected 8.5 million Windows devices, or less than one percent of all Windows machines. While the percentage was small, the broad economic and societal impacts reflect the use of CrowdStrike by enterprises that run many critical services.  

This incident demonstrates the interconnected nature of our broad ecosystem — global cloud providers, software platforms, security vendors and other software vendors, and customers. It’s also a reminder of how important it is for all of us across the tech ecosystem to prioritize operating with safe deployment and disaster recovery using the mechanisms that exist. As we’ve seen over the last two days, we learn, recover and move forward most effectively when we collaborate and work together. We appreciate the cooperation and collaboration of our entire sector, and we will continue to update with learnings and next steps.  

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Help Centre

• Selling with Etsy
• Start Selling on Etsy
• Getting Started

How to Open an Etsy Shop

Quick answer

To open an Etsy shop, visit Etsy.com/sell

Interested in selling on Etsy? Welcome!

This guide helps you through the first steps of opening your shop, shares tips on how to get a strong start, and provides resources for further guidance along the way. 

What can I sell on Etsy?

Create your shop, set up your payment and billing details, turn on two-factor authentication, set up your shopfront.

• Adding listings to your shop

Marketing, branding, and promotion

• Manage your shop
• Questions about setting up your shop?

Etsy is a place for items made by a seller, designed by a seller, handpicked by a seller, or sourced by a seller.

Before you start an Etsy shop: 

• Review Etsy’s Creative Standards to see what can be sold on Etsy
• Review our Prohibited Items Policy to check if you can sell your items on Etsy
• Ensure that you're in a location where Etsy Payments is available  
• Review our seller policies
• Learn about fees for selling on Etsy

What’s an item made by a seller?

Items made by a seller are physical items fully handcrafted by you, or produced by you without the assistance of a production partner or third party. This includes handcrafted, hand assembled and items produced using computerised tools. This includes things like spun pottery, knitted scarves or embroidered clothing.

What’s an item designed by a seller?

Items designed by a seller are original designs that are either offered as a digital download, or are produced or printed onto a physical item by a third party. This includes things like digital downloads, or where a production partner is used in the creation of the final product such as a book designed and illustrated by a seller but printed and bound by a production partner. 

Read more about working with production partners on Etsy.

What are items handpicked by a seller?

Items handpicked by a seller are items that are personally selected and curated for sale by a seller. This could include vintage items that are at least 20 years old, items from nature or certain collections of items. This could include items such as a dress from the 1950’s, rocks, geodes or a “new baby” themed gift box containing an assortment of items personally selected and arranged by you, the seller.

What are items sourced by a seller?

Items sourced by a seller are items that enable a buyer’s creativity like craft supplies, party decorations or personalised items with buyers’ unique text or image. 

Craft and party supplies include items that are tools, ingredients, or materials whose primary purpose is to create an item or throw a special occasion. Personalised items include items such as initials engraved on a necklace, or a custom logo embossed on a journal.

What products are prohibited on Etsy?

Even if your products are handmade, vintage, or craft supplies, you may not be able to sell them on Etsy if they’re in a prohibited category. Make sure you review and understand our policies before listing items. Prohibited items include tobacco, drugs or drug paraphernalia, weapons, hazardous materials, and others. Items that use the intellectual property of someone else, even if you designed or created the item, aren’t allowed either.

You must also follow local laws in your area. There may be certain things in your area that can’t be sold or delivered.

What if Etsy Payments isn't available in my country?

Currently, you can only open an Etsy shop in a country where Etsy Payments is available. Etsy can only offer payment services in certain countries at this time. We are working to support additional countries in the future.

Stay tuned to the Site Updates section of our Seller Handbook for updates.

Before you create your shop, sign in or create an Etsy account . You’ll use this account to run your shop and to buy from other makers on Etsy. After creating your account, add your profile picture and bio to let other people in the Etsy community know who you are.

You need to complete the first step of opening your shop on a desktop web browser. Once your shop is open, you can manage your shop on the Etsy Seller app .

To create your Etsy shop

• To open an Etsy shop, visit Etsy.com/sell and select Get started .
• Answer a few questions about where you've resided, your business experience, and if you'd like to receive additional selling resources.
• Select your shop language, country, and currency, then select Save and continue .c
• Choose your shop name , then select Save and continue .

Do I need a business licence to sell on Etsy?

Etsy doesn’t require sellers to have a business licence to sell on Etsy.

However, when selling on Etsy you're required to follow any laws that apply to you as a small business selling online. If you have any questions regarding which laws apply to you, please contact a qualified professional.

Set your shop preferences

Select your shop’s language, country, currency, and time commitment:

• Shop language: The shop language you choose is the default language you use to describe your items. Be sure that the language you choose is also one you feel comfortable communicating with buyers in. You won't be able to change it later, but if you’d like to add translations in other languages, you will be able to enrol in other languages after opening your shop. 
• Shop country: Be sure to select the correct country for your shop. 
• Shop currency: Choose the currency you will use to price your listings. Currency conversion fees may apply if your bank's currency is different from your shop currency.

Choose your shop name

Choose a memorable name that reflects your style. Shop names must meet the following requirements:

• 4-20 characters in length 
• No spaces or special characters 
• No profanity 
• Not already in use by an existing Etsy member 
• Does not infringe on another's trademark

If the shop name you entered is in use, you will see suggestions for other shop names that are still available. Your shop name will be held for you while you open your shop.

After you open your shop, you can change your shop name from   Info and Appearance  under the  Shop Name  tab. 

Get some tips for choosing a shop name .

Stock your shop

Add product listings to your shop . You don’t have to add all your listings yet!

To get paid on Etsy, you need to connect your bank account to your Etsy shop so that you can receive payments. You’ll also need to add a debit or credit card to your account to pay your bills from Etsy. 

How to connect your bank account:

• From the How you’ll get paid page, f ill out your personal information.
• At the bottom of the page, select the country where your bank is located under Where is your bank located?

The steps to set up payments can vary depending on your location.

Sellers with US bank accounts

US sellers add bank details by using a third party service provided by Plaid. Plaid allows you to verify your bank details with them to help ensure you get your deposits. Learn about Plaid’s security measures .

Under Your bank information choose Connect your bank with Plaid and follow the steps to add and verify your bank details. Learn more about updating your bank details . When you use Plaid to verify your bank account details, you agree to Plaid’s terms , including Plaid’s Privacy Policy .

Sellers in Australia

Sellers in Australia must have a residential address on file with their Australian bank. This address must be used for Etsy Payments. We are unable to accept a PO box as a residential address.

You can update your address in Shop Manager.

Sellers in Argentina, Chile, China, Japan, Peru, Thailand, or Ukraine

You can sign up for Etsy Payments with a Payoneer Payment Account.

• Select Connect with Payoneer . You’ll be prompted to sign in to your Payoneer Payment Account or create a Payoneer Payment Account if you don’t have one yet.
• Choose Save and continue .

Learn more about using Payoneer with Etsy .

Other sellers outside the US

• Under Your bank information , enter your bank account details. 
• Select Save and continue .
• Add a credit or debit card. (Shops based in Germany, Austria, or the Netherlands don’t need to add a credit or debit card.) 

You must verify your bank details to help ensure you’ll receive funds from your sales smoothly and securely. Learn how to verify your bank details .

You can add a prepaid card to your account from the billing setup page if you already added a credit or debit card to your account. A non- reloadable prepaid card can’t be your only or primary payment card, but you can always pay your bill manually with a non-reloadable prepaid card.

If you are trying to add a reloadable prepaid card to your account but it is not working, please try adding another card instead. 

Once you’ve opened your shop, you’ll be charged a one-time shop set-up fee of $15 USD. This fee helps us invest in support for new sellers, as well as enhanced security checks to protect our marketplace.

If you onboard using Payoneer, the fee will be in USD and is non-refundable. Taxes may apply.

A confirmation of this transaction will be sent to the email you registered when opening up your shop, and your payment will be reflected in your Payment account. Learn more about the Etsy shop set-up fee .

As a security measure, we require you to set up two-factor authentication. When you sign in from an unrecognised browser or device, we’ll send you a verification code to enter before accessing your account. You can receive this verification code through:

• An authenticator app on your Android or iOS device (Recommended)
• A phone call

Learn more about two-factor authentication .

If you are having issues inputting your phone number for two-factor authentication, please use an authenticator app instead. 

Once this is finished, select Open your shop . Congratulations! You’re now ready to begin setting up your shop!

Once you’ve signed up to sell on Etsy, there are a few steps you need to take to complete your shop setup and prepare to start selling items. Like any online business, you should think through how you’re going to manage your shop . Consider things like production time, policies, and your plan for delivery.

What do you want your shop to look like?

• Banner and shop logo: Upload clear photos that represent the style of your brand and make a strong first impression on shoppers. Learn how to upload a shop banner and logo .
• Shop announcement: Share a brief welcome message with shoppers. 

Learn more about customising the look of your shop .

What's your shop's story?

• About section: Upload videos or photos and share the story behind your products, how your business came to be, and what your vision is for your brand. Learn how to craft a great About section .
• Shop members: Introduce any other members of your team or people you collaborate with.

What do your customers need to know?

• Shop policies: Outline all your policies for delivery, returns, exchanges, payments, custom items, or any other guidelines that are important for shoppers to know before they make a purchase.
• Delivery profiles: Decide how much you want to charge for postage, if you’ll offer free delivery , and set up delivery profiles that help shoppers know what they’ll pay for postage.

For US sellers, as you finish your shop setup, consider purchasing USPS Postage Labels on Etsy. You can save up to 30% than the USPS retail rates you would pay at the post office or elsewhere online. Read more about purchasing USPS Postage Labels on Etsy .

Add more listings to your shop

Once you’ve completed all your shop sections, you are ready to start adding products to your Etsy shop. When you add a product to your Etsy shop, we call this a listing. Learn how to list an item .

Best practices for listing items

When listing your items, keep in mind the best practices for listings, taking into account:

• Using your titles and tags to optimise for Etsy search
• Take high quality listing photos
• Add attributes to help shoppers find your items
• Describe your items in a way that captures shoppers’ interest
• Set accurate processing times to give shoppers an idea of when they’ll receive the item
• Consider how you'll set your  postage prices or offering free delivery

A marketing strategy is key to the success of your Etsy shop. Marketing will help new customers find your products, lets you keep existing customers up to date with the latest with your shop, and can lead to an overall rise in sales. 

Getting started with marketing

• Make sure you’re optimising your shop for Etsy search . Make sure to add your location so that your shop can be found in local searches. 
• Link your shop to your social media accounts so you can easily craft posts about your business. 
• Learn how investing in advertising can help build your brand and get your listings in front of buyers.
• Consider offering discounts to incentivize shoppers to buy with sales and coupons . 
• Find a local craft fair or market where you can sell your goods. 
• Join the Etsy community and teams where you can network with sellers and shoppers. 

Check out these topic deep dives to learn more:

• Advertising
• Social Media Marketing

Start selling

On Etsy, we take pride in our sellers offering buyers a great experience. Read tips for offering great customer service . If you provide consistent, excellent customer service, you may become a Star Seller .

Tips for managing your shop

• Make sure you follow customer service best practices so you’re qualified for Etsy Purchase Protection for sellers . 
• Sign up for each of our seller email lists so you don’t miss out on tips and important information.
• Learn what to do when you make your first sale . 
• Read about Etsy’s Review system and how to get 5-star reviews .
• Manage your shop on the go using the Etsy Seller app . 
• Take a break from your shop when needed.

Grow your business on Etsy

To take your shop to the next level, review our essential guides to get started with:

• Ultimate Guide to Starting an Etsy Shop
• Listing photos
• Customer service
• Etsy search
• Your shopfront

We also have plenty of other resources to help you learn more about selling on Etsy:

• Explore the Seller Handbook for in-depth guides on everything you need to run a successful business on Etsy. 
• Listen to the Etsy Success podcast . 
• Watch our videos on YouTube.
• Connect with our community of talented and knowledgeable sellers in the Etsy Community .
• Enrol in an Etsy U class to learn from experienced sellers.

Welcome to selling on Etsy!

Here are the answers to some common questions when getting started on Etsy.

If you’d like a step-by-step guide to getting started, read our Beginner’s Guide to Selling on Etsy .

To start opening your Etsy shop :

• Click Sell on Etsy on Etsy.com .
• Click Open your Etsy shop.
• Select your shop language , country, and currency, then click Save and continue.
• Choose your shop name , then click Save and continue.

You’ll now have a draft shop. Before your open shop, you must create your item listings , choose your payment methods , and set up billing . 

After you add your billing info, you’ll see a button to publish your shop.

Once your shop is open, you can customise the look of your shop with a logo and shop banners.

When someone searches for an item on Etsy.com, Etsy’s search algorithm looks for the most relevant matches. You control the most important factors in Etsy search placement when you create listings in your shop:

• Tag and title relevance
• Item attribute relevance
• Listing quality
• Customer & market experience
• For US shoppers: Free delivery

Learn how to optimise each of these factors .

Everything listed for sale on Etsy must be made or designed by a seller, handpicked by a seller, or a sourced by a seller. Items sold on Etsy must also follow our Prohibited Items Policy .

Items made by a seller

Items designed by a seller, items handpicked by a seller.

Items handpicked by a seller are items that are personally selected and curated for sale by a seller. This could include vintage items that are at least 20 years old, items from nature or certain collections of items.

This could include items such as a dress from the 1950’s, rocks, geodes or a “new baby” themed gift box containing an assortment of items personally selected and arranged by you, the seller.

Items sourced by a seller

If you closed your Etsy shop, you can reopen it . All your information will be exactly as you left it.

If your shop was suspended, you may have received an email from Etsy letting you know. Respond directly to that email and request that your shop be reopened. If you can't find that email, let us know .

Reopen your Etsy shop

Thanks for your feedback!

Related articles.

• How to Create an Etsy Account
• Countries Eligible for Etsy Payments
• Etsy Fee Basics
• How to Deliver Your Items on Etsy
• What is a Payment Account Reserve?

Still have questions?

1. Understanding your finances

2. effective budgeting strategies, 3. reducing everyday expenses, 4. smart financial habits, 5. making extra money, 6. utilizing savings tools, how to save money effectively: 6 smart savings strategies.

Affiliate links for the products on this page are from partners that compensate us and terms apply to offers listed (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate banking products to write unbiased product reviews.

• To save money, evaluate your expenses and see if there are areas where you can limit spending.
• Consider whether your money is in the right place and review interest-earning bank account options.
• If you're saving for a specific purpose, set practical guidelines for goals.

Whether you're beginning to put away money for an emergency fund or ready to save for a down payment on a house , reviewing your savings habits can be integral to reaching your financial goals. 

There are several key steps and strategies to use when saving. You need to understand your finances, create a budgeting plan, start reducing spending, build an emergency fund , and practice other smart financial habits. You should also understand what tools are available to you, from investing, budgeting, and banking tools to side hustles and other ways of making additional money.

Here are six steps and strategies to saving money.

Assessing your income and expenses

To start saving money, you first have to look at where your money is going. 

"Oftentimes, people find it difficult to save because they try to do that after they take care of a lot of spending — after they pay their mortgage , rent, car payment, their groceries, etc. They find that they may have nothing left. I always suggest tracking your spending because that helps you identify money that can be saved," says Patrina Dixon, CFEI and founder of It'$ My Money .

Evaluate your spending to see if there are any specific categories where you can make some monthly adjustments.

Setting realistic financial goals

Maybe you want to save for particular savings goals , like a vacation or new car.

To help make your goal more tangible, Scott Stanley, CFP and founder of Pharos Wealth , says you can estimate expenses for your goal and set a timeframe. Then, you can review your budget and see how much you can save each month to make the goal more tangible. 

If you realize it's becoming challenging to save for your goal, consider resetting your expectations by extending your timeline or selecting something with a more practical cost.

The role of budgeting in saving money

Budgeting can help you identify how much money you have to spend, as well as what expenses you should spend that money on. Some expenses will be necessary to cover every month, like rent or utility bills; these are considered essential expenses .

Nonessential expenses are things you don't necessarily need to pay every month and are dependent on your wants, like entertainment and eating out. Your budget will help you determine what nonessential expenses you can afford, and which ones you need to cut back on or get rid of entirely.

Creating a monthly budget

There are a few common budgeting tips you can use to structure your spending when you're learning how to budget .

One example is the 50/30/20 budget rule . In this budgeting strategy, you spend 50% of your income on your necessities, like housing, transportation, and utilities, 30% on nonessentials, and 20% on savings, investments, and debt repayments. This is a flexible rule you can tweak to fit your situation, but it might not work for every circumstance, especially if you live in an area with high cost of living.

Another common budgeting strategy is the 70/20/10 budget rule . With this strategy, you'll spend 70% of your income on essential and nonessential expenses, 20% on savings and investments, and 10% on debt payments or donations. Like the 50/30/20 rule, this is a flexible rule that doesn't require you to keep careful track of every expense. If you want to focus on debt repayment, or if donating part of your income each paycheck is important to you, this might be a good strategy for you.

If you've kept up with a consistent budget, check in on your progress. If something doesn't go to plan, you can always modify it. You'll also want to make adjustments if you recently received a raise or bonus. 

Identifying areas to cut costs

Once you've decided on a budgeting strategy, you can identify places you might be overspending.

Reducing non-essential expenses doesn't necessarily mean you have to eliminate things that bring you joy. Instead, Dixon recommends reducing how frequently you're making that particular purchase.

For example, let's say you are a gourmet coffee aficionado. If you buy gourmet coffee from a cafe every day, you could alternatively go once or twice a week and contribute more to your savings.

Budgeting tools and apps

There are lots of budgeting tools, such as money saving apps and personal finance software programs , that can help you build your budget. If you don't want to use online apps or software, you can always use a notebook to track your expenses.

Using a budgeting app can help you keep track of your expenses without having to do it all manually. Budgeting apps can also help show you areas where you might be overspending. Depending on what app you use, you might also have access to other features, like monthly bill reminders, savings goals planning, and more.

If you would like to track your progress toward a specific financial goal, you might like a savings account with budgeting tools . Some high-yield savings accounts let you label and track progress for goals. Another option is to open a secondary savings account to track your progress.

Saving on groceries

If you're looking for ways to curb your spending on groceries, Dixon suggests planning out shopping trips beforehand to make you get everything you need all at once. This could also be helpful with saving gas if you would normally make frequent grocery trips or don't live near grocery stores.

Cutting utility costs

There are several ways to cut utility costs, although some of them require upfront expenses. 

One way to cut utility costs is to bump your heat down a few degrees in the winter, or raise your thermostat by a few degrees in the summer. You can also consider turning your heater or air conditioner off or down at night, if the temperatures in your area permit it. 

If you're interested in saving money long-term and don't mind spending some money, consider investing in energy-efficient appliances or solar panels.

Lowering transportation expenses

If your area offers public transit, using that might be less expensive than paying for the gas you would use to get somewhere — especially if your city's public transit system is robust enough to get rid of your car entirely. If your city is bikeable, replacing your car with a bike might provide similar savings.

While this option definitely isn't possible for everyone, being able to avoid car payments, expensive maintenance fees, and gas costs can save you a lot over time. Using public transit or biking might also help you avoid using ridesharing apps, which can get very expensive over time. 

The benefits of an emergency fund

Having an emergency fund is vital for financial security. If you lose your job or have a surprise medical bill , an emergency fund can keep you from going into debt or having to dip into money you were saving for something else. It can also help ease money-related stress, since you know you have funds to fall back on.

You should keep roughly three to six months' worth of expenses in your emergency fund. You might want to keep more than that saved to budget for healthcare costs or other emergencies if you're more likely to run into them.

Putting your emergency fund in a high-yield savings account can also help you earn extra money off of your emergency fund.

Prioritizing high-interest debt repayment

Debt, especially debt with a high interest rate like credit card debt, can build up over time. If you're not paying off your debt fast ,  you could end up just paying the debt's interest without touching the principal, or the original money you borrowed. If this happens, you won't make any progress towards being debt-free. Make sure to budget enough money for debt repayment to avoid this, and try to pay off debts as fast as you can to avoid paying too much in interest.

If you have several debts, consider prioritizing repaying the ones with the highest interest first. This is a debt repayment strategy called the "avalanche method," and it can help you save money in the long run. You could also use the "snowball method," where you pay off your smallest debts first. Analyze your debts to decide whether the avalanche method or the snowball method is the better choice for you.

Investing in your future

It's important to start saving for retirement as soon as possible, and investing can be a great way to do that. Contributing regularly to something like a Roth IRA can ensure that you have money to depend on later in life. Not only will you have the money you put into the Roth IRA, but you'll also have whatever money you made off of investing, too.

You can also use investing to pay for long-term financial goals, like buying a house. Just be aware that investing comes with risk, and it's possible that you'll lose money.

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Side hustles

Finding ways to make money outside of your job can help make sure you always have some money coming in. There are several ways to find fast cash , including money-making apps, freelancing, or using gig economy apps.

While you're unlikely to earn lots of money from them, money-making apps can help you earn some money, and the tasks they offer don't usually require much from you except for time.

Freelancing is more likely to provide a strong extra income stream, but can be inconsistent and might require more investment from you. There are several online freelancing platforms you can use to get started, like Fivver and Upwork. Similarly, gig economy apps like Uber or TaskRabbit could provide an extra income stream, but also frequently require you to provide your own equipment.

Selling unused items

You can use apps like Depop, Poshmark, or Facebook Marketplace to sell things you already have but don't need. Keep in mind that apps like this sometimes charge a fee to use them.

If selling your stuff online doesn't appeal to you, you could throw a garage sale to get rid of things you don't need anymore.

High-yield savings accounts

High-yield savings accounts are similar to regular savings accounts that you'd find at brick-and-mortar banks, but they offer more competitive interest rates. Putting your money in a high-yield savings account is a great way to make money off of your savings without risk.

The best savings account option for you will likely depend on when you'll need to access your money. Savings accounts typically have a cap on how many times you can withdraw your cash per month, although some don't. While it can be inconvenient to not have access to your money at any time, this can also be a perk if you don't want to be tempted to dip into your savings.

For money you need access to more regularly, a checking account is a better choice. You probably won't get as good an interest rate — most checking accounts don't earn interest at all — but you'll have much easier access to your money.

"The majority of your direct deposits may go into there so that you can pay your car payment, rent, mortgage, whatever the various bills that you need to pay," explains Dixon. 

• Certificates of deposit

Like high-yield savings accounts, CDs are all interest-earning bank accounts that can help grow your money.

CDs are different from high-yield savings accounts in two key ways. First, you generally can't withdraw money from your CD after you put it in. CDs last for a specific length of time, referred to as its "term length," and you generally only get access to your money again at the end of that term length. Second, while savings accounts have a variable interest rate that can change at any time, CD rates are generally fixed, and will stay the same for however long your term length is.

Certificates of deposit are great for saving for specific long-term goals, especially if you know how long you want to save for. They're also good for ensuring you keep a good interest rate for a long time. However, if interest rates rise after you open a CD, you might be stuck with a worse interest rate than you would have with a savings account.

Automated savings plans

Automating your savings can be a great way to ensure you're always making progress on your savings goals. Stanley recommends setting up an automatic transfer from your checking account to a high-yield savings account after each paycheck. That way, you won't forget and accidentally overspend money you were planning on saving.

By assessing your income and expenses, making and sticking to budget, and making use of different financial tools, you'll be able to save money and start building towards your financial goals. If you follow these tips, you can start saving for the future, even if you don't think you have much money to set aside.

Saving money tips FAQs

The amount you should save will vary based on your income, expenses, and financial goals. One common budgeting strategy is the 50/30/20 rule, where 20% of your income goes to savings and debt repayment. This number can be adjusted to fit your needs; the goal is to start with a manageable amount and increase it when you can.

Start by reviewing your expenses and identifying any nonessential items that can be reduced or eliminated, as even small cuts can add up over time. If you can, consider treating savings as a non-negotiable expense by automating a small money transfer to a savings account each payday.

Look for an account with a high interest rate, low fees, and good customer service. Online banks often offer higher interest rates than brick-and-mortar banks. Also consider whether you want your money to be easily accessible, or whether you want it to be a little harder to get access to.

Yes, investing can be a form of saving, especially concerning retirement plans or other long-term financial goals. Investing often earns you a higher return than a savings account, but comes with a higher risk. 

Making clear, specific financial goals can help you stay motivated to save money. Examples of clear goals are saving to buy a house, go on vacation, or build an emergency fund. Make sure to track your progress and celebrate milestones along the way.

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