October 4, 2024
20
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Etsy is one of the biggest online marketplaces for handcrafted and creative products. Artists and designers worldwide flock to Etsy to start a small shop and earn money by selling products they create.
Whether you want to start a side hustle or a small online business, Etsy can be a great place for you to start.
What exactly is Etsy? Which products should you sell on Etsy? How can you start an Etsy shop and make it profitable?
We’ll answer all your questions related to selling on Etsy in the in-depth guide. Let’s get right to it.
Etsy is an online marketplace where people buy and sell unique and creative products. Unlike traditional marketplaces, which allow you to sell practically anything, Etsy is limited to handcrafted or unique products.
It’s not a marketplace where you sell commercial, mass-produced items, but one where you sell unique, handcrafted goods.
The focus is on handcrafted products, vintage items, and craft supplies. If you have a creative talent and can create digital or physical products, then you can sell them on Etsy.
Most buyers come to Etsy to find unique items that are not available on other marketplaces. It’s one of the best online selling platforms for individuals and niche businesses with one-of-a-kind products.
Here are some benefits of selling on Etsy and reasons why you should consider selling on the platform.
One of the biggest benefits of selling on Etsy is that you don’t need to build an audience, but get access to its established user base. Etsy is an established online marketplace with massive monthly traffic and active buyers, which you can access when you sell on Etsy.
According to Statista, it had an estimated 96.48 million active buyers in 2023.
Image via Etsy
When you start a website, you need to use SEO and advertising to slowly gain momentum and drive traffic to your website. Even then, reaching millions of people may take several years, and still be an unattainable goal for most websites.
However, when you sell on Etsy, you can instantly access its existing customers and benefit from it. With the right SEO strategies and marketing efforts, you can potentially reach millions of consumers and jumpstart your online business in no time.
Another benefit of selling on Etsy is that you can reach a relevant audience that’s interested in the kind of products you sell.
Since Etsy is a specialized marketplace where people come to find a specific set of products, it has a large, yet targeted audience base. The simple reason for this is that there are only a few categories of products you can sell on Etsy.
So, irrespective of which product you decide to sell, you will find a whole community of active buyers who are interested in those.
Starting a business website and making it successful takes a lot of time, effort, and money. You need to spend on website development, SEO, advertising, and conversion rate optimization, among other things.
Now, compare it to Etsy, where you get:
Compared to these benefits, the fees that you pay to sell on Etsy are nominal. It’s perfect for beginners to get started on their entrepreneurial journey without much upfront costs.
Whether you’re a beginner or an expert, you can easily sell on Etsy, without much effort. The interface is intuitive and extremely easy to use for anyone.
From setting up your shop to optimizing it for search engine optimization (SEO), the process is simple. You can do everything yourself and don’t need to hire anyone to set up your Etsy shop and start selling on the platform.
It comes with built-in marketing and advertising tools to help you reach your target audience and bring them to your online store.
Doing SEO for Etsy is also straightforward and doesn’t require external help or much expertise.
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If you’ve decided to sell on Etsy and make your entrepreneurial dreams come true, then this guide is for you. We’ll take you through the step-by-step process of setting up your Etsy shop and start selling on the platform successfully.
Let’s get started.
The first step in this guide on how to sell on Etsy is to decide which products you want to sell. Since this is a platform meant for selling specific types of products, you can’t sell just about anything on it.
Etsy is a platform where people can sell original products that they’ve made or designed. Unless large ecommerce platforms allow you to sell everything under the sun, Etsy focuses on selling creative products made by real humans.
The three main categories of products you can sell on Etsy are:
Choose the category that most interests you and create a list of products you can sell on Etsy.
If you are not a creative genius who can handcraft products, you can use a category like personalized clothing and a platform like Podbase to create print-on-demand products.
It’s not limited to just clothing as you can create a wide variety of custom tech accessories, wall art, and drinkware as well.
The best part is that it easily integrates with Etsy, so you can simply create an account on Podbase and connect it with Etsy to start selling.
Image via Podbase
Logically, if you want to sell on Etsy, you need to first create an account on the platform. The process is fairly simple and intuitive.
Simply visit the website and start the registration process. Here’s the popup you’ll see when you click on “Sign in” and then “Register.”
Image via Etsy
As you can see, Etsy provides one-click registration options via Google, Facebook, and Apple, making the process really simple. The process is self-explanatory, so just follow the instructions and create your Etsy account.
Once you have created an Etsy account, you should then create a shop on the platform. This requires some additional steps and information.
You’ll need to enter the details about what you want to sell on Etsy, your country and currency, language preference, and some other relevant business details and shop preferences.
You will then be prompted to choose a shop name, which should be between 4 and 20 characters. Choose a short and catchy name, without any spaces or special characters.
It should be something that represents your business or the products you want to sell on Etsy. Lastly, see if you can include a primary keyword in your shop name to make it great for SEO purposes.
In the example below, the seller sells Notion templates on Etsy and the shop name AnythingNotion clearly indicates that. It’s both SEO-friendly and user-friendly as it clearly shows what the Etsy shop sells.
Image via Etsy
If you have an existing business and simply want to expand your presence to Etsy, then you should use your exact business name for consistency. Alternatively, if you plan to someday launch your own business and website, you should secure a domain name that matches your Etsy store name.
With all that, you should have created an Etsy storefront. We’ll talk about customizing it later, but first, let’s cover some other essentials in the following steps.
This is probably the most important part of the process of selling on Etsy—creating great product listings.
Remember, there might be hundreds of sellers selling similar products on Etsy. Your product listings are what will make your products stand out, so make sure you do these right.
So, choose the product category and type, fill in the required details, and create your first product listing to sell on Etsy.
For each listing, you can add up to 10 images and one video, so make sure you utilize all of it and upload high-quality product visuals.
Lastly, use keywords people use to search for similar products in your product titles and descriptions. We’ll discuss Etsy SEO tips later in this guide, so go through that to create optimized product listings.
You need to set up a payment method before you sell on Etsy. To do this, you’ll need to provide some information, including:
This will enable you to receive payments from customers when you sell on Etsy. The bank account you enter here will be where all your sales revenue will be transferred.
As we’ll discuss later, there are several costs associated with selling on Etsy, including subscription fees, transaction fees, and more.
If you want to sell on Etsy, you also need to provide a payment method for paying said fees. You can, for instance, save your credit card information, and your Etsy subscription fee can be automatically deducted from it.
Apart from credit and debit cards, you can also choose to pay via Google Pay, PayPal, Apple Pay, and other payment providers.
Once you’ve added the payment method, set up two-factor authentication for your account to enhance security. This will ensure that no one can get unauthorized access to your Etsy seller account and shop.
Once the billing and payment setup is complete, go back to your shop and add the finishing touches to get it ready for launch.
Here are some things you need to do:
Here’s an example of an Etsy shop that follows the above-mentioned tips.
Image via Etsy
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There are several costs associated with selling on Etsy. Let’s discuss all the important ones so you know exactly how much it costs to sell on Etsy.
Here you go.
This is a one-time fee that you may be asked to pay when setting up your Etsy shop for the first time. This is not applicable to all shops and is something that Etsy may simply waive off during ongoing offers and promotions.
If you do need to pay this, you will be prompted to do so during the initial setup process for starting an Etsy shop.
For every product listing you create on Etsy, you need to pay a nominal fee of $0.20 to the platform. This is not a one-time fee but applies to every single product you sell on Etsy.
So, if you sell multiple quantities of the same product, you will pay the fee for each item, not just one listing.
However, if you use Etsy Pattern to build your website, which is separate from an Etsy shop, then there are no listing fees for products you sell there.
Also, note that Etsy listings expire in four months and you can set up an auto-renewal process to ensure that your product listings are always active.
This is a fee that Etsy charges for every sale made via the platform. Think of it as a commission for using the platform to reach a massive audience and sell your products.
It charges 6.5% of the total order value for each transaction made via the platform.
If you choose to use Etsy Payments to accept payments from your customers, then you need to pay this. The actual amount or percentage depends on the country from where you’re doing business.
In some countries, a deposit fee may also be applicable.
Here’s an example of what these fees typically look like in some countries. Check out the complete list to find the costs associated with your country.
Image via Etsy
Etsy uses US Dollars as the default currency. Even if you choose a different currency for your payment account, Etsy will convert it from USD to your preferred currency, which may not always be at the current exchange rate.
Also, if you create listings in a currency other than what you’ve chosen for your Etsy Payments account, it will charge a 2.5% currency conversion fee.
Any Etsy seller doing business in the US using USD need not worry about this.
Etsy offers a subscription plan called Etsy Plus to reliable sellers who are in good standing with the platform. It offers various tools that can help you grow your business and become a successful Etsy seller.
The cost of this subscription is $10 per month, which will be automatically deducted from your Etsy Payments account each month.
Some key benefits of opting for this subscription are:
All other sellers on the platform are by default a part of the Etsy Standard plan, which is free and doesn’t offer these benefits.
The platform offers two advertising options to sellers—Etsy Ads and Offsite Ads.
For Etsy Ads, you have complete control over how much you’re willing to pay and can set a budget per your preferences. It works like any other advertising platform where you make bids and set a daily budget that won’t be exceeded at any cost.
Etsy also picks ads from a variety of partner websites. If you have placed an ad on another website and Etsy shows the ad and you make a sale through it, then you’ll be charged offsite ad fees.
The percentage charged will depend on your shop’s sales in the previous 365 days. Here are the details:
Essentially, as your Etsy business grows, the Etsy advertising fees will decrease.
Some sellers sync their Etsy listings with the Square reader to process in-person sales. This is great when you’re selling your products via in-person events and need an easy way to process payments.
In this case, Etsy will charge the listing fees for every product sold, as detailed earlier.
However, it will not charge a payment processing fee or a transaction because Square will charge that as per its policies.
This is a fee that’s associated with increased costs of operating a business in specific countries and is not meant for all Etsy sellers.
In some countries, you will need to pay this fee, which is charged as a fixed percentage of the total order value for each transaction. This is over and above the transaction fee charged by the platform.
Here are the charges for the various countries where this fee is charged.
Image via Etsy
Pattern is a tool offered by Etsy that you can use to create a website. It’s free for the first 30 days, after which you need to pay a subscription fee of $15 per month.
Your subscription will auto-renew every month unless you cancel it.
If you have decided to sell on Etsy, you need the right strategies to jumpstart your business and make it successful. That’s what we’ve done in this section.
Here are seven great tips on running a successful Etsy shop.
The most important tip to run a successful Etsy shop is to learn how to do SEO (search engine optimization) on Etsy. Yes, SEO matters even on Etsy, and understanding how to do it right is crucial.
The most important aspect of Etsy SEO is keyword optimization. You need to find out what keywords people use to search for products similar to yours and use those in your product listings.
Here are some tips to create SEO-friendly Etsy product listings:
Overall, use all possible elements to enrich your product listings to get more organic traffic to your Etsy shop.
Pro Tip: Other than Etsy SEO, also invest in regular SEO because your Etsy shop may rank for relevant search queries on search engine results pages (SERP) as well.
Email marketing is a way for you to directly communicate with your customers and build long-term relationships. Go beyond transactional emails for order confirmation and shipping, and use email marketing to build relationships.
Make sure you build your email list by seeking consent from customers and shop visitors. One great way of doing so is by giving them an incentive, such as a discount on their next purchase.
Also, don’t spam your subscribers, and stick to sending useful and relevant emails.
Here are some types of emails you can send to boost sales from your Etsy shop:
If you sell on Etsy, you can use email marketing in myriad ways to build relationships with existing customers and encourage repeat business. Use these tips and see your sales soar.
If you sell on Etsy, you’re most likely a solopreneur or someone who runs a small business. It’s understandable that you don’t want to invest in professional product photography, which can be expensive.
However, that doesn’t mean that you can’t take professional-looking product pictures yourself.
If you have a good phone camera, you can learn some tips and tricks to take excellent product pictures that tempt prospective customers to buy your products.
Here are some beginner tips to help you get started:
Since product pictures are often what people use to decide whether they want to buy a product, make sure you do this right.
Most people come to Etsy to look for unique and creative designs and products. One common expectation people have from Etsy sellers is that they’ll be creative individuals or small boutique brands.
If you sell on Etsy and want to build a loyal customer base, you need to create a unique and distinct brand. This is what will make your Etsy shop stand out from the hundreds or thousands of others that sell similar products.
Here are some tips to help you create a strong seller brand on Etsy:
The key to branding is consistency. Choose your brand elements carefully and then use them wherever possible to create a clear brand identity.
This is an effective, yet underrated, tip for running a successful shop on Etsy.
It’s simple: just add a handwritten “Thank You” note to all the orders you ship to your customers. Make it heartwarming and thank people to buy from your small business and support your dreams.
Of course, address each customer with their name and personalize the note based on their order. Don’t forget to sign off with your name and designation (founder of your brand) to put a human face on your brand.
This is a simple, but powerful, way to build strong customer relationships and help them connect with you and your brand more. It not only makes customers feel special but also proud that they supported a small business instead of buying from large corporations.
Pro Tip: This is a great tip for individual sellers and small business owners who are getting started. However, as your business grows, it may not be feasible for you to send handwritten notes to all customers. Switch to email marketing and send “Thank You” emails when you feel it’s time to upgrade.
As a small business owner, you can’t afford to get negative reviews due to poor customer experience. Providing a great customer experience is crucial if you want to sell on Etsy successfully for a long time.
Take customer support very seriously and provide an easy way for customers to contact you with their queries. The simplest option for new Etsy sellers is to provide their email contact, where customers can reach out. As your business grows, you can provide more options to your customers.
Check out this Etsy shop that provides a contact button through which customers can reach out to the brand. It also mentions its Facebook and Instagram account name, in case customers want to connect via social media.
Image via Etsy
Make sure you reply to customer queries promptly and don’t make them wait long before they get a response from you. A long response time may cause them to lose trust in your business and complain about their experience on social media or other platforms. This, of course, can damage your reputation and should be avoided at all costs.
Also, be polite in your communication with customers and try to resolve their issues as efficiently as you can.
Lastly, monitor customer reviews on various platforms and engage with them actively. Respond to both positive and negative reviews and make sure you address customer concerns promptly before it turns into a negative experience.
Lastly, make shopping easier for customers by providing great shipping, return, and payment options.
Here are some things that can make your brand stand out:
Check out this product listing on Etsy where the seller clearly discloses the brand’s shipping and returns policy. It even mentions when the product will be shipped.
Image via Etsy
1. Why should I sell on Etsy?
There are many benefits of selling on Etsy, such as:
If you’re a new entrepreneur and have a unique product idea, Etsy can be a great place to sell your products and start your own business.
2. How much does it cost to sell on Etsy?
There are several costs involved in selling on Etsy. Some of the most important ones are:
3. How do I start selling on Etsy as a beginner?
Here is the step-by-step guide to selling on Etsy as a beginner:
4. Do I need a business license to sell on Etsy?
This depends on your shop location and the types of products you sell on Etsy. Some countries or localities require businesses to acquire a license, even for selling on Etsy while some don’t.
You need to find out the local laws and regulations, specifically related to your type of business, and then decide if you need a license to sell on Etsy.
You may need a home-based business permit, in some areas, if you run a business from your home. In some cases, you may also need to start an LLC or Sole Proprietorship to establish your business legally.
Other licenses you may require could be product-specific or related to health and safety.
Etsy, in and of itself, doesn’t ask sellers for a license, just to ensure that they comply with their local laws. So, the onus of getting the required licenses is on you.
5. Which products should I sell on Etsy?
The best products to sell on Etsy are handcrafted goods, DIY craft supplies, and digital products that you design yourself. You can even use a print-on-demand company like Podbase to create custom product designs and sell them via Etsy using its seamless integration.
This detailed guide covers all aspects of selling on Etsy, so choose your products and create an Etsy shop to make your entrepreneurial dreams come true.
You don’t need to be a creative genius to sell on Etsy. In fact, an easy way to get started is to start a print-on-demand business using Podabse to create custom products that you can sell on Etsy.
It seamlessly integrates with Etsy, so you can directly connect it with your Etsy store and start selling in no time.
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