One of the largest global internet markets is Etsy. It can develop from a side gig into a full-time company with more than five million sellers serving roughly 90 million active customers. Sell On Etsy.
It serves as a venue for small business owners to connect with potential clients. Millions of visitors browse the market with credit cards, prepared to purchase homemade products, artwork, and jewelry.
But where do you begin? Learn from founders and small-business entrepreneurs who have made the transition from running an Etsy storefront to becoming a full-time company owner about the process.
1. Determine if Etsy is right for you
Long before selecting the “Start selling” button on Etsy’s site, the first step in starting an Etsy shop is taken. Take a time to assess whether Etsy is the ideal platform for your small business.
Much like Amazon or eBay, certain things sell quicker on Etsy’s marketplace than others. Because buyers choose items in the home and living, art, and jewelry categories the most, the sales channel is well-liked by makers and others who offer handcrafted products.
Similar to Amazon, Etsy is more well-known in some nations than others, while having buyers (and sellers) from all over the world. 11% of Etsy sellers are located in Canada, while 30% are sellers in the UK. The roster also includes other European nations including Germany, France, and Italy. However, if your target market is located outside of those most well-liked areas, it might not be the optimal place for your business.
2. If Etsy is right for your small business, create an account
Create a free account on Etsy once you’ve determined it’s the ideal platform for your small business. Click Get started on the Etsy.com website. To create an account, enter some basic personal data such as your first name and email address.
3. Open your Etsy storefront
Use your newly created account to launch your Etsy store. The first step is to input your store settings, which should include the language you’ll use to describe your items, the nation from which you’re selling, and the currency you’ll use to bill buyers.
Then type the name of your store. This can be a string of unbroken characters and digits.
Unsure about the name for yours? Use a business name generator to generate ideas. Select a name that is appropriate for the products you’re selling and isn’t being used by another Etsy business owner.
4. Upload products
You may begin selling products as soon as your new Etsy business has a store. For each item you’re selling on the marketplace, whether it’s antique products, handcrafted things, or arts and crafts materials, make a new listing.
The images you use to sell the item are, in all likelihood, the most crucial component of any Etsy listing. The majority of internet shoppers make visual decisions. They are unable to feel, smell, or physically view things. Their choice to purchase your Etsy items depends on the quality of the product photos.
Each entry can have up to 10 high-quality photographs or a single video added. Each must be distinctive enough to stand out from products being offered by other marketplace sellers.
You may add more details about the product you’re listing if you scroll down. This comprises:
- A product title
- The category slots into
- The listing type (more on this later)
- Whether it’s a physical or digital product
- Information about the listing, including who made it and when
- A product description containing your unique selling point (USPs)
When optimizing an Etsy listing, keep in mind the best practices for search engine optimization (SEO). Keep in mind that a search engine that links consumers and vendors is the foundation of the marketplace. Include keywords in your Etsy listing to make sure you are found by potential consumers on the results page.
Under the Inventory and Pricing area, set the price for your product. Enter the price, quantity, and SKU for the item as well as how many you have available (if you use them). At this stage, you may also include variants, such as products in different sizes or colors.
The last step is to upload the shipping details buyers will require to purchase your product from your Etsy store. Indicate the location from where the item will be shipped as well as your typical processing time or the amount of time it normally takes you to choose, pack, and send an item after receiving an order confirmation.
Decide whether to provide delivery improvements or set postal rates. You should provide a tariff number for customs if you are sending products to foreign clients.
It’s recommended that you upload at least 10 listings when you first launch your Etsy store as a new seller. Before publishing, be sure to preview every listing. When potential buyers first examine your items, you don’t want them to encounter a subpar listing.
5. Choose how you’ll get paid
satisfied with your inventory? You’ll be prompted to select your preferred method of payment on the next page.
Choose whether you’re a sole proprietor or a legally constituted corporation. After that, input your data, such as your name and address. Enter the information for the bank account where you wish to receive your Etsy earnings before finishing.
6. Set up billing
While creating an account and making purchases on Etsy is free, selling requires payment. You will be prompted to select a payment option after providing the details regarding how you would like to receive payments. You’ll pay in this way to open your storefront and post your listing.
7. Customize your Etsy storefront
Customizing your new storefront—the information prospective consumers will see when visiting your business profile—is the last step in starting an Etsy shop. How to do it:
- Upload a profile and banner photo. Put the logo of your business, yourself, or your products front and center on your Etsy store.
- Create a user profile. Put a face to the products you’re selling on the marketplace by introducing yourself as the store manager. Give potential customers reassurance that there is a live person behind the screen.
- Tell people about your new store. Do you sell anything? Why? How did your shop get started? Describe yourself briefly and explain why people should buy your stuff when they visit your new Etsy business.
- Upload your shop policies. The tedious but necessary topics of delivery, payment methods, refunds, exchanges, and privacy rules. To avoid any misunderstandings with Etsy buyers, be explicit about the conditions of purchasing from your store right away.
Visitors will be impressed by the personalized banner, profile photo, and featured products banner on JewelleryGBShop‘s Etsy site.
The costs of selling on Etsy
Etsy is an excellent place to sell since there are no upfront costs involved, and there are only fees when a transaction is made. The main drawback of Etsy, according to Claire Westbrook, founder of TrendyJournals, “is the multiple costs, including listing fees, sales and tax fees, and transaction fees. Typically, Etsy fees amount to close to a third of the product’s sales.
Let’s examine some of the largest.
The most popular Etsy fee is the listing fee. Regardless of whether a listing generates a sale or not, sellers are charged 20 for each new listing they add to their store.
Listings appear on Etsy’s marketplace by default for four months (or until the item has been sold). You will be charged the same 20 cents after the four months are up if auto-renew is toggled on in the listing details.
Sold something on Etsy? The marketplace will charge you a transaction fee of 6.5% for helping to make the sale. In addition, each listing’s postage, shipping, and gift-wrapping costs are included in that.
Additionally, regulatory running fees (varying from 0.25% to 1.1%) are owed by sellers in the UK, France, Italy, Spain, and Turkey for each listing. It is based on the overall revenue, which includes the cost of the products and any shipping costs the customer paid.
- United Kingdom: 0.25%
- France: 0.4%
- Italy: 0.25%
- Spain: 0.4%
- Turkey: 1.1%
Payment processing fees
Your bank account details will have been submitted once you created your Etsy shop.
A range of different Payment Processors, including PayPal, Apple Pay, Google Pay, and Klarna, are available to customers through Etsy Payments, which store owners can also choose to participate in. By enabling Etsy Payments, you agree to pay its processing costs.
Before their Etsy sales are deposited in their bank accounts, sellers in several nations, such as Mexico, the Philippines, and South Africa, must additionally reach minimum payment requirements.
Currency conversion fees
All transactions on Etsy are made in US dollars. Even though you can sell products in different currencies, all fees for using Etsy will be invoiced in USD. Before the transfer, the market will exchange your funds into the currency of your bank account, but take aware that this exchange rate may not always reflect market value.
When transacting with Etsy in a currency other than the US dollar, a 2.5% currency conversion fee may be charged.
Offsite Ads fees
Even though you can have a flawlessly optimized product listing that appears in the Etsy search engine, the marketplace is aware that occasionally, consumers may desire to further the cause of client acquisition. Advertising, enables sellers to accomplish that.
Sellers have the option to participate in Offsite Ads, which display their items on Etsy’s marketing and promotional channels. Without having to maintain their advertising accounts, business owners may have their items appear in Etsy’s Facebook, Google, and display advertisements.
But there is a price for this. When a seller’s item sells through an Offsite Ad, they get charged. 15% of the order amount will be deducted as payment for their Offsite Ad program if your shop generated less than $10,000 in revenue from the marketplace over the previous year. Once you reach $10,000, your Offsite Ads cost is reduced to 12%. In any case, Etsy guarantees that the cost of your Offsite Ad will never go beyond $100 per item.
Etsy shipping costs
In select regions where Etsy Payments or PayPal are accepted, sellers can buy shipping labels through the marketplace, and payments are deducted directly from their accounts. The carrier, the places of origin and destination, and the dimensions of each parcel all affect the prices. For signature confirmation and insurance, extra charges apply.
The option to join Etsy Plus is available to all Etsy sellers. With additional benefits for sellers who want to pay the $10 monthly charge, its membership package guarantees to help sellers “take their business to the next level.”
15 listing credits and $5 in Etsy advertisements credit are given right away to Etsy Plus sellers. Additionally, they get characteristics like:
- Customizable shop options
- Discounts on custom domain names
- The ability to email shoppers when an item is back in stock
Sell on Etsy FAQ
Products produced by hand Items from the past Crafts and craft materials Digital products
It costs nothing to start an Etsy business, $20 to display a product for four months or until it sells, and 6.5% as a transaction charge. Additional fees and currency translation costs apply to international sales. Fees for payment processing vary.
Etsy fees a transaction fee of 6.5% of the total transaction amount. This is true for any sale made on the marketplace.