Are you ready to turn your creative passion into a thriving business? Etsy might just be your perfect ecommerce platform. It’s a unique marketplace for handmade, vintage, and one-of-a-kind items. With over 96.48 million active buyers in 2023, Etsy provides an incredible opportunity for small business owners and creative entrepreneurs to reach a large and dedicated audience.
For many artisans and vintage collectors, Etsy is unlike eBay or Amazon. It’s a community where creativity flourishes, and niche markets thrive. The benefits of selling on Etsy are plentiful: access to a global audience, a marketplace tailored to unique and handmade items, and a supportive community that values and promotes creativity.
So, what are you waiting for? This article aims to teach budding creatives and ecommerce entrepreneurs how to sell on Etsy. We’ll provide you with the knowledge and tools to successfully navigate and thrive in this vibrant marketplace.
Getting started as an Etsy seller
Before we go into the basics of how to sell on Etsy, you first need to know how to create an Etsy seller account. In this section, we’ll walk you through creating your Etsy seller account. We’ll also cover Etsy seller fees, legal requirements, and how to navigate the dashboard.
Creating your Etsy Seller account
Follow these easy steps to start selling on Etsy in no time!
Create an Etsy seller account login
Find and click the “Sell on Etsy” button at the bottom of Etsy’s homepage.
Once on the page, click “Open your Etsy shop.”
Enter your business email address.
Perfect! Now, enter your first name and create a secure password. After that, just click Register!
Almost there! Etsy will send you an email with a link. Click the link to verify your account, and you’ll be redirected back to your Etsy seller account.
Set your Etsy shop preferences
After confirming your email, click “Open your Etsy shop” again or select the shop manager icon at the top right of the screen.
Start setting up your Etsy shop preferences by entering your shop language, country, and currency. Once this step is saved, you won’t be able to change the shop language; you can only add new ones.
Give your shop a unique and catchy name
Here comes the fun (and a bit tricky) part: naming your shop!
A great Etsy shop name is super important because it’s the first thing customers see and remember. In Etsy’s creative and artistic community, a unique name helps you stand out and reflects your brand’s personality. You’ll need a name that isn’t already taken, so have a few backups just in case.
Your Etsy shop name must be:
- Between 4-20 characters.
- Free of spaces and special characters.
- Clean and profanity-free.
- No trademarked names allowed.
When choosing a name, think about what makes your products special and try to capture that in your name. Combine words that reflect your style or the items you sell. You can also use wordplay or clever puns. Make sure it’s easy to spell and pronounce. Lastly, avoid jumping on trends and aim for something authentic and timeless.
Stock your shop
Tell Etsy what type of item your products are, their category, who made them, whether they’re finished products or tools, and when they were made.
Then you’ll be moved to the actual listing page, which we’ll get back to later.
Setting up your payment preferences
Once you’re satisfied with your inventory, it’s time to set up your payment preferences. On the next page, you’ll decide how you want to receive your earnings.
First, indicate whether you’re an individual seller or an incorporated business. Then, provide your personal information, including your name and address. Lastly, enter the details of the bank account where you want your Etsy revenue to be deposited.
Configuring your billing information
Setting up an Etsy account and browsing is free, but selling comes with costs. After you specify how you’d like to receive payments, you’ll need to set up your billing information. This step involves choosing a payment method for covering the costs of listing your items and maintaining your storefront. This ensures that your shop can stay active and visible to potential buyers.
Etsy seller fees
Now that you know the basics of how to sell on Etsy, there are some fees you need to be familiar with:
Set-up fee
Etsy might ask for a one-time setup fee to get your shop up and running. This fee is non-refundable and can be adjusted at Etsy’s discretion. Don’t worry, it’s only charged after your shop is open and ready to take orders. Keep in mind the fee is listed without any applicable taxes, which might show up in your payment account and be deducted from your sales.
Listing fees
Etsy.com charges a $0.20 listing fee for each item you put up for sale on Etsy.com or the Etsy app. The fee is only for creating or renewing a listing, not for editing it. You’ll be charged this fee whether the item sells or not—unless it’s a private listing, in which case the fee is charged only when the item is sold. If you have multiple listings, the $0.20 fee is automatically renewed after each sale.
Transaction fees
When you make a sale on Etsy, there’s a 6.5% transaction fee on the price of each item, plus shipping and gift wrapping. For US sellers, this fee doesn’t apply to sales tax. For sellers outside the US, transaction fees cover the listing price and any taxes you’re responsible for. It also covers shipping and gift wrapping.
If you offer personalization for an extra fee, this is added to the listing price and is also subject to the 6.5% transaction fee. Fees are automatically deducted from your balance with each sale and shown in your payment account.
Payment processing fees
Payment processing fees are charged for each transaction and vary based on your bank account location. In some markets, a fixed deposit fee might apply for disbursements below certain amounts. The payment processing fee applies to the total sale amount, including tax and shipping.
Do you need a business license to sell on Etsy?
When considering how to sell on Etsy, it’s crucial to understand the legal requirements. Etsy’s seller policies do not mandate a business license to sell on their platform. However, whether you need a business license depends on whether your Etsy shop is classified as a business or a hobby.
Determining your Etsy activity: business or hobby
The IRS provides guidelines to help determine if your Etsy activity is a business or a hobby. They consider factors such as the time and effort you put into the activity, whether you depend on the income, and if you operate the activity like a business. If you profit in three of the last five years, the IRS considers it a business. As a business, you can write off expenses, but you’ll need to apply for a business license.
Obtaining necessary licenses and permits
Once you’ve established that your Etsy activity is a business, you’ll need to obtain the appropriate licenses and permits. Check with your municipal, county, and state agencies to understand the specific requirements for your area.
- Business license: Requirements vary by jurisdiction. You must complete an application and pay a fee, which is renewable annually.
- Seller’s license: Also known as a sales tax ID, this state permit allows you to collect sales tax. Depending on the state, Etsy may handle sales tax collection and remittance for you.
- Home occupancy permits: If you run your Etsy shop from home, check local regulations for home-based businesses. Your homeowner’s association (HOA) may also have specific rules.
Then, decide whether you’ll operate as a sole proprietor, LLC, or corporation. Each structure has different legal and tax implications. If forming an LLC or corporation, apply for an Employer Identification Number (EIN) from the IRS. This will separate your business finances from your personal ones.
Preparing your products for sale
Whether you’re an experienced Etsy seller or just figuring out how to sell on Etsy for the first time, preparing your products for sale is an exciting step. From discovering the best-selling items on Etsy to taking stunning product photos, we’ve got you covered.
What to sell on Etsy
Finding the perfect ecommerce products to sell on Etsy requires dedication and some snooping around. Analyze market trends. Stay current with tools like Google Trends and Etsy’s Trend Report.
Check out what’s hot and forecast what’s coming next. Consider seasonal trends and upcoming events. Products tied to holidays, back-to-school, and weddings can bring a surge in sales.
Spy on your competitors. Take a peek at top sellers in your niche. See what they’re offering, how they price their items, and what their customers are raving about. You can also engage with the Etsy community. Join forums to mingle with other sellers and buyers. It’s a fantastic way to catch the latest trends and get insider tips.
Dig into customer reviews and feedback. What do people love? What do they grumble about? This can give you a golden insight into what’s missing in the market. Embark on a keyword quest with research tools. Discover what potential customers are searching for. Even Etsy’s search bar can give you a treasure trove of trending search terms.
Best-selling items on Etsy
Here are some of the best selling items on Etsy this 2024:
Digital delights
- Printable planners and organizers: These are perfect for those who love to plan and organize their lives. Customizable and convenient, they are always a hit.
- Social media templates: With everyone trying to boost their online presence, these customizable templates are in hot demand.
- Digital artwork and illustrations: From printable wall art to cute digital stickers for journaling, digital art is where it’s at.
- AI prompts and digital tools: Get techy with ChatGPT prompts and digital tools. Perfect for the savvy digital creator.
- Resume templates: In today’s job market, sleek and professional resume templates are a must-have.
Handmade goodies
- Knitted accessories: Cozy scarves, hats, and gloves that keep people warm and stylish are always in vogue.
- Personalized jewelry: Charm bracelets, engraved necklaces, and rings with a personal touch make for perfect gifts.
- Handmade soaps and beauty products: Natural and organic beauty products continue to be crowd-pleasers.
Home sweet home
- Eco-friendly home decor: Sustainable items like biodegradable planters and recycled fabric throw pillows are all the rage.
- Japandi Style Items: Blend Japanese minimalism with Scandinavian functionality with items like woven wall hangings and neutral-toned ceramics.
Personalized perfection
- Custom pet products: From personalized collars to custom pet portraits, pet owners love to pamper their furry friends.
- Customized stationery: Unique greeting cards and personalized notes bring a special touch to any correspondence.
Seasonal wonders
- Holiday decorations and gifts: Personalized ornaments and festive home decor items are top sellers during the holiday season.
- Wedding and event essentials: Handmade invitations and custom signage are perfect for those special days.
Creating high-quality listings
Let’s dive into the art of crafting high-quality listings that can capture hearts and fill your digital wallets!
Tips for taking professional product photos
Imagine scrolling through Etsy and stumbling upon a stunning necklace gleaming in the sunlight or a cosy knitted scarf that looks like it was plucked from a dreamy winter wonderland. According to Etsy, 90% of shoppers make a purchase based on the quality of its images. That’s the magic of professional product photos!
- Embrace natural light: Natural sunlight is your best buddy! Snap your shots near a window during the day or head outdoors for that dreamy, soft glow. Good lighting means you can ditch the flash, which often leads to harsh shadows.
- Keep your lens clean: Ensure your lens is spotless for crisp, clear images. Don’t let a smudge spoil your perfect shot!
- Avoid zooming in: Zooming on mobile devices or cameras can reduce image quality. Instead, physically move closer or further away from your item to get the perfect shot.
- Experiment with compositions: Try capturing your product in various settings to find the best backdrop. Play with different angles and contexts to showcase your item beautifully.
- Capture a variety of shots: Show off every aspect of your product! Take close-ups to highlight textures and intricate details, and include lifestyle shots to help buyers envision your product in their lives.
- Studio shots with a plain background.
- Lifestyle shots where the product is being used.
- Scale shots that depict its size.
- Detail shots that highlight its features from all angles.
- Group shots with all your products together.
- Packaging shots featuring your products’ packaging.
- Process shots depicting how your products are made.
- Use negative space: Position your item so there’s extra space around it, ensuring the entire product is visible. This helps when cropping your thumbnail for the listing photo.
- Go horizontal: A horizontal photo uses more of the available space within the thumbnail frame, minimizing the need to crop out important details when you upload.
Writing compelling product descriptions
Your product descriptions are your chance to tell the story behind each creation. Grab attention with an engaging opening line. Something like, “Imagine wrapping yourself in the luxurious warmth of our handmade alpaca wool scarf on a chilly evening…”
Explain what makes your product special and why it’s a must-have. Talk about the unique materials and craftsmanship and how it will make the buyer’s life better. Paint a vivid picture with your words. Describe the texture, colour, size, and feel of your product. Make the reader almost feel like they’re holding it in their hands.
While being descriptive, ensure your writing is easy to read. Break it into short paragraphs or bullet points for quick scanning.
The importance of keywords and SEO
Keywords are the secret sauce that makes your listings discoverable in the vast Etsy marketplace. Use tools like Etsy’s search bar to find popular keywords related to your product. Phrases like “best-selling items on Etsy” or “top-selling items on Etsy” can be gold.
Include your keywords in the title, tags, and description. For example, if you’re selling handmade candles, you might use “handmade soy candles,” “organic candles,” or “best-selling candles on Etsy.” The more specific your keywords, the better. Instead of just “jewelry,” try “handcrafted silver earrings” or “boho chic necklaces.”
While keywords are important, your descriptions should still flow naturally. Avoid keyword stuffing!
How to create a listing
Now that you know how to create a listing that leads to ecommerce conversions, it’s time to actually create one. Let’s take off from the “Stock your shop” step from earlier.
1. Describe your product
Give your product a catchy name sprinkled with keywords to boost your search results. Write a detailed description. Is it handmade, vintage, or a craft supply? If your product can be personalized, like with engraving or printing, enter the instructions for customers under the personalization section.
2. Show off your product
Upload the stunning photos you took of your product. You can tweak the thumbnail of your primary photo and rearrange the others by dragging and dropping. You can also bring your product to life by uploading a video.
There’s also a section to upload any digital files.
3. Price and inventory
Set your product price and enter the quantity you have available. If you use SKUs, enter them here. These handy codes help you keep track of your products.
Click “Add variations” to let customers choose size and material. Adjust the price and inventory for each variation as needed.
4. Organize with sections and tags
Similar to categories, these help shoppers find your products more easily. Describe your product’s shapes, colors, styles, functions, and fabrics. The more detailed, the better!
5. Choose a category
Pretty straightforward. Choose your product’s category.
6. Shipping
Save delivery profiles for future listings to make the process even smoother. Etsy calculates shipping costs based on your product’s size and weight, or you can enter them yourself.
7. Additional settings
Create a return policy and decide whether you want your listing to renew automatically every four months or manually.
8. Preview and save
Take a final look at your listing. Happy with how it looks? Click “Save and continue.” Voilà! You’ve created your first listing.
Managing your Etsy shop
Welcome to the behind-the-scenes magic of running an Etsy shop! Now that you’ve already learned how to sell on Etsy, here’s everything you need to know about managing your Etsy shop like a pro,
Utilizing the Etsy Seller dashboard
Think of the Etsy Seller Dashboard as your shop’s command center. It’s packed with features designed to help you manage every aspect of your business.
First things first, you need to get to your dashboard. Just sign in to Etsy.com from your desktop or mobile browser, head over to your Shop Manager, and voila–you’re on your dashboard!
Shop dashboard sections
Stats overview
Ever wondered how many visitors are admiring your handcrafted creations? In the Stats Overview, you’ll get the lowdown on your views, visits, orders, and revenue. You can even switch up the date range or sales channel if you’ve got multiple streams going. For an even deeper dive, hit “View detailed stats” and explore the numbers.
Your open orders
Got orders piling up? Just click on the numbers in this section to hop straight over to your orders page. It’s like having a shortcut to your packing station!
Your shop’s checklist
Your Shop’s Checklist is here to remind you about everything from expiring listings to overdue bills and new cases. Plus, it’s packed with timely tips and resources to help you stay on top of your game.
Messages
This is where you communicate with your customers. Inform your customers immediately after shipping their orders. Provide a tracking number when possible so they can track the package’s journey. Be prepared to respond to any shipping inquiries they might have. This can include delivery timelines, shipping fees, or potential issues with their order.
Recommended for you
This section is brimming with seasonal trend reports, educational guides, seller spotlights, and more. It’s like having your very own Etsy mentor!
Listings
This section shows you how many active, expired, and sold-out listings you’ve got. Click on the numbers to jump straight to your Listings page and manage them with ease. To add a new listing, click the “Add a listing” button at the top right.
To update the inventory, find the listing, click the gear icon, and select “Edit.”
Recent activity
Stay up-to-date with what’s happening in your shop through the Recent Activity feed. See your latest shop and listing favorites, incoming orders, and fresh reviews all in one place. It’s the heartbeat of your shop, keeping you connected to your customers.
Pricing your products
Setting the right price for your products is crucial. What’s the use of learning how to sell on Etsy if you sell yourself short? To set a base price for your items, start by calculating the costs of materials, time, labor, and overhead. List all your materials and their costs, including any free shipping you offer. Adjust your prices to cover these costs.
Next, consider your overhead expenses like studio rent, equipment, and marketing. Divide these costs by the number of items you plan to produce to find the overhead cost per item. Don’t forget Etsy’s fees, which include listing, transaction, and payment processing fees.
Also, factor in your labor by estimating the hours it takes to create, package, and ship your products. Set a fair hourly wage for yourself. Experiment with cutting tasks or buying in bulk to see how these changes affect your costs and profits.
Try to look at similar products on Etsy to gauge their price range. This will give you a sense of what customers are willing to pay and where your products fit. Remember to stay true to the value of your work.
Shipping and handling
Shipping is a critical part of your customer’s experience. It can be the main reason for a good or bad review, so make sure you take extra care when packaging your products.
Use sturdy, appropriate packaging to protect your items during transit. Consider eco-friendly options to appeal to environmentally conscious customers. Adding a personal touch, like a thank-you note, can enhance the unboxing experience.
Research different shipping carriers to find the best rates and services. Factors to consider include delivery speed, reliability, and cost. Calculate your shipping costs based on packaging materials, carrier rates, and any handling fees. Decide whether to offer free shipping (by incorporating the cost into your product price) or charge a flat rate. According to Etsy, 76% of buyers consider the shipping cost before making a purchase.
If you plan to offer international shipping, research the rates and regulations for different countries to ensure smooth delivery. Clearly state your shipping policies and estimated delivery times for international orders to manage customer expectations.
Promoting your Etsy Shop
You’ve created stunning products and set up your shop. Now it’s time to spread the word and attract customers! Here’s how to promote your Etsy shop and get noticed.
Leveraging social media
Social media is a powerful tool for driving traffic to your Etsy shop. Focus on platforms where your target audience hangs out. Instagram, Pinterest, and TikTok are popular choices for showcasing creative products.
Like all things social media, post beautiful photos and videos of your products. Connect with potential customers by sharing behind-the-scenes glimpses of your creative process. Use stories and reels to jump on the short-form content trend.
From there, you can simply follow the formula of social media success:
- Interact with your followers by responding to comments and messages.
- Have a consistent schedule.
- Use the right hashtags.
- Host giveaways or contests.
- Join communities related to your niche.
Using Etsy ads and promoted listings
Etsy Ads promote your listings in Etsy search results and across the platform. You set a daily budget, and Etsy does the rest, displaying your ads to shoppers who are likely to be interested in your products.
There are two types of Etsy Ads:
- Etsy ads: These are paid advertisements that help your products stand out in search results and other prominent spots across Etsy. You set a daily budget, choose the items you want to promote, and let Etsy’s algorithm work its magic. Promoted listings are now part of Etsy ads.
- Offsite ads: Etsy promotes your listings on external platforms like Google, Facebook, Instagram, and Pinterest. You only pay a fee when you make a sale from these ads, which can attract buyers from all over the web.
Tips for creating effective Etsy ad campaigns
- Set clear goals: Know what you want to achieve. Do you want more traffic? Higher sales? Brand awareness? Defining your goals will help you tailor your marketing strategy.
- Budget wisely: Start with a modest daily budget. Monitor performance, and if you’re seeing positive results, consider gradually increasing your budget.
- Choose your stars: Promote items that already have good reviews and high-quality photos. These are more likely to attract clicks and conversions.
- Keywords are key: Think like a shopper. What words would you use to find your products? Use those keywords in your listings to improve your ad’s relevance.
- Eye-catching photos: Your photos are the first thing shoppers notice. Make them stunning, clear, and true to life. Use multiple angles and show your product in action.
- Compelling titles and descriptions: Be descriptive and engaging. Tell a story about your product and how it can benefit the buyer. Highlight unique features and use those keywords!
- Monitor and tweak: Monitor your ad performance. Etsy provides helpful metrics. If something isn’t working, don’t be afraid to tweak your listings or try new keywords.
- Stay seasonal and trendy: Capitalize on holidays and trends. Tailor your ads to seasonal demand to capture the interest of shoppers looking for specific items.
Collaborating with influencers
Partnering with influencers can give your shop a significant boost. Here’s how to do it effectively:
- Look for influencers who align with your brand and have an engaged following that matches your target audience.
- Send a personalized message explaining why you admire their work and how a collaboration could be mutually beneficial.
- Offer to send a sample of your product for them to review and share with their followers.
- Clearly define your expectations and what the influencer will receive in return, whether it’s free products, payment, or a combination.
- Ensure the partnership feels authentic and beneficial for both parties.
Advanced selling strategies
Ready to take your Etsy shop to the next level? Let’s explore some advanced strategies to boost your sales and optimize your shop’s performance.
How to sell digital downloads on Etsy
Selling digital products on Etsy is a fantastic way to expand your offerings. They allow instant delivery to customers, no shipping costs, and the ability to sell the same product an unlimited number of times. They’re perfect for items like printable art, digital planners, templates, and more.
Steps to create and list digital downloads
- Design a high-quality digital product that provides value to your customers. Use software like Adobe Illustrator, Canva, or other design tools.
- Save your files in popular formats such as PDF, JPEG, or PNG. Ensure they are high resolution and ready for download.
- Go to your Etsy shop manager and create a new listing. Select “Digital” under the listing type. Upload your files and fill out the listing details, including a compelling title, description, and relevant keywords.
- Research similar digital products on Etsy to determine a competitive price. Remember, digital products often have lower overhead costs, so you can offer them at attractive price points.
Optimizing for SEO
Improving your Etsy shop’s visibility through SEO is crucial for attracting more customers. Use more advanced keyword research tools to find popular keywords related to your products.
- Research and use long-tail keywords: Long-tail keywords are specific phrases that shoppers are likely to type into the search bar. Instead of just “handmade jewelry,” try “unique handmade silver jewelry” or “boho handmade beaded necklace.” These detailed phrases have less competition and attract more targeted buyers.
- Optimize your shop sections and titles: Each section in your shop is an opportunity to use keywords. Make sure your section titles are descriptive and keyword-rich. For example, instead of “Necklaces,” use “Handcrafted Silver Necklaces” or “Vintage Statement Necklaces.”
- Craft keyword-rich product descriptions: Use your keywords naturally throughout your product descriptions. Describe your items in detail, incorporating keywords where they fit seamlessly. This not only helps with SEO but also provides valuable information to potential buyers. Integrate phrases like “best selling Etsy items” in your product titles and descriptions where it makes sense.
- Update tags regularly: Tags are crucial for Etsy SEO. Use all 13 tags available for each listing and update them regularly to reflect seasonal trends and popular search terms. For instance, during the holidays, you might add tags like “Christmas gifts” or “holiday decor.” Use tags such as “top selling products on Etsy” for items that are particularly popular or have high sales
Analyzing and improving your shop’s performance
To continually grow your Etsy business, you need to analyze your shop’s performance. Use Etsy’s built-in analytics tools to monitor your sales, traffic, and customer behavior. Look for patterns in your best-selling items and peak sales times. For more comprehensive data, you can also connect your Etsy shop to Google analytics.
Analyze which keywords and listings drive the most traffic and sales. Use this information to optimize your shop’s content and focus on high-performing products.
Tips for improving your shop
Based on your analytics, update your product titles, descriptions, and tags to better match customer search terms. Improve your shop’s aesthetics, streamline the buying process, and offer excellent customer service to encourage repeat business.
If you notice a demand for certain types of products, consider expanding your range to meet customer needs. Stay ahead of trends and continually innovate.
Wrapping it up
That’s a wrap! We’ve covered the essentials and advanced strategies for running a successful Etsy shop. With these tips and strategies in your toolkit, you’re well-equipped to turn your creative passion into a thriving Etsy business. So, what are you waiting for? Now that you know how to sell on Etsy, start selling today and share your unique creations with the world!
Tool of the week: Etsy Seller app
The Etsy Seller app is a game-changer for managing your shop on the go. It allows you to monitor your shop from anywhere. Whether you’re at home, at a craft fair, or on vacation, you can easily manage your listings, orders, and inventory right from your phone. You’ll never miss a sale or run out of stock unexpectedly with instant notifications and easy tracking.
Download the Etsy Seller App today and experience the convenience of managing your Etsy shop from your phone!
FAQs
What not to sell on Etsy?
Etsy prohibits the sale of certain items, including drugs, alcohol, tobacco, animal products, hazardous materials, and items that promote violence, hate, or discrimination. Additionally, you cannot sell counterfeit or trademark-infringing goods. Always review Etsy’s policies to ensure your items are compliant.
How often should I post on Etsy?
Posting regularly can help keep your shop active and visible. Aim to add new listings or renew existing ones at least once a week. Regular activity signals to Etsy’s algorithm that your shop is active, which can improve your search ranking.
How many listings should I have on Etsy for a beginner?
As a beginner, aim for at least 20-30 listings to give your shop a professional and varied appearance. Having multiple listings increases the chances of being discovered by buyers and provides more opportunities for sales. As you grow more comfortable with the platform, continue to add new items to keep your shop fresh and appealing.