How to Make Money on Etsy Now: A 6-Step Guide

Etsy shops are simple to set up, can make you money, and have minimal list fees when managed correctly . We want to help you make more inform decisions. Some links on this page — intelligibly marked — may take you to a collaborator web site and may result in us earning a referral commission. For more information, see How We Make Money. Etsy is swimming with people who can ’ thymine expect to spend money. The question is whether or not your store will be the one they find. “ Selling on Etsy is not a unmanageable process, but many creators or shop owners can overcomplicate it, ” says Aviad Faruz, Chief Executive Officer at FARUZO, an Etsy shop that sells personalized jewelry. “ The best way to deal with this problem is to pick a niche and go along with it when defining the catalogue for your workshop. It helps in making things easier in the long run. ”

Since going public in 2010, the creator marketplace has exploded with sake from artisans and consumers alike who are wondering how to start an Etsy shop. Etsy had 96 million active users and over seven million Etsy sellers in 2021, according to data compiled by Statista, an analytics company. The platform besides produced a sock $ 2.3 billion in tax income last class. Whether you want to build on Etsy for a side hustle or as a small clientele owner, you can open your own shopfront in minutes. furthermore, it won ’ metric ton cost you a fortune, and you ’ ll have potential customers waiting to come and browse your offerings when you launch. We interviewed four stream patronize owners on how to find success on Etsy ; here ’ s what they had to say .

How Many Items Do I Need to Start Selling on Etsy? 

good news : You can start selling on Etsy with barely one detail. however, more listings broadly equate to more visibility for your shopfront, and a successful Etsy store prioritizes search engine optimization and multiple easy-to-browse Etsy listings. “ The sum of products you need depends on what your recess is, ” says Pat Servin, owner of PicasPrintables, an Etsy shop that sells printable rampart art, party games, and planners. “ In my niche, it ’ randomness crucial to have more than 25 items. many in my recess upload new items every week. But deciding on an ideal merchandise count sometimes requires a bit of trial and error. ” Having multiple products in your Etsy shop on day one can sound intimidating at first, but doing so will let you accelerate the test process and identify which products sell better than others. If you ’ re wondering how to start an Etsy shop that will gain momentum cursorily, listing details for multiple items will give you more data. “ Having multiple products in your shop is key ; it allows you to do your own customer inquiry, ” says Carrie Williams Howe, owner of The Happy Hive, an Etsy workshop based in Vermont that sells hand poured beeswax home goods. “ When I first gear started, I had both personal care products and home products in my shop. I found that personal products like lip balm and lotion were harder to sell, possibly because the market was saturated. But the home products started taking off right away. This allowed me to hone my focus and eliminate products that didn ’ t do well for me. ”

Pro Tip

Focus on your recess. Create physical or digital products you love, price them competitively, and create compel descriptions to attract the right buyers .

How to Start an Etsy Shop in 6 Steps

You can start an Etsy shop and get your on-line store off the grind by following these six dim-witted steps .

Step 1: Create an Etsy Account

Visit from your desktop and select the “ Sign in ” connect. Unless you already have an Etsy account, you ’ ll click the “ Register ” button and input your e-mail address, beginning list, and password to sign up .

Step 2: Activate your Etsy Shop

once your Etsy score is established, you ’ ll consumption it to set up and manage your new Etsy shop. Visit the sellers page, click the “ Get started ” button, and input the credentials you created in step one. Click the button below the banner that reads “ Open Your Etsy shop class ” and select your preferable speech, country of residency, denounce currency, and early shop preferences. next, chink “ Save and continue, ” figure your patronize name, and choose “ Save and continue ” again. If the shop name you want is over 20 characters or already in use, Etsy will prompt you to choose a unlike name. Keep in take care that you ’ re lone allowed one patronize claim change once your denounce is established .

Step 3: Add Listings to Your Online Shop 

On the next screen you ’ ll create your first base Etsy listings by uploading or entering the adopt information :

  • Relevant images or videos, including a thumbnail image (up to ten photos)
  • A title, brief description, the listing category and attributes (optional)
  • Tags to help make your listing more visible in searches (optional)
  • Materials (physical items only) or craft supplies used in the process
  • The price, quantity, SKU number (optional) and shop tax rate (if applicable)
  • Variations if you’re selling a physical item
  • Shipping price options and the item weight and size (if you’re located in the U.S., selling physical items and using calculated shipping). 

If you can swing it, offering rid ship as an incentive is a scheme many Etsy business owners use to increase concern in their on-line shop .

Step 4: Spruce Up Your Storefront

Before adding items to your denounce, customize its appearance to make it shine. Consider adding a standard and shop class announcement to greet on-line visitors, and don ’ t forget to upload a logo that complements your brand. There ’ south besides a quad to educate likely customers about your company and what it stands for. You can add photos or videos to the about incision to illustrate the development of your brand, define your recess marketplace, introduce the workshop coach or other team members, and share visuals of anything else you ’ d like visitors to know. Most importantly, don ’ deoxythymidine monophosphate forget to include your store ’ s policies. Be sure to provide guidance on payment options, order process times, transport, and your exchange and return policies .

Step 5: Select Payment and Billing Settings 

You ’ ll motivation to indicate your tax filing condition to get paid on Etsy. hera ’ s what you ’ ll input based on your survival :

  • Individual or sole proprietorship: your full name, address, phone number, date of birth, last four digits of your Social Security number and country of residence
  • A registered legal entity or incorporated business: name and address of the business entity, EIN, business registration number and information about the shop owner (including the name, date of birth, address and last four digits of their Social Security number) 

Related: LLC or S Corp? The Tax Decision New Business Owners Need to Make Remember that if you ’ re pursuing Etsy as a minor business owner, it ’ sulfur judicious to set up a separate business bank report that can serve as the payment report for your Etsy commercial enterprise. The final step is to select the county where the bank you ’ ll use to receive sales proceeds from Etsy is located. Enter the rout and account number, and from there you ’ ll be all set to get paid through Etsy. You ’ ll besides need a citation wag on file for Etsy to collect fees, such as the payment march tip, the Etsy list fee, and any other Etsy transaction fees. Enter your wide name ( printed on the card ), batting order number, termination date and CVV numeral, and Etsy will withdraw its fees monthly. Consider applying for a clientele credit rating card to help you keep clientele and personal expenses separate .

Step 6: Open your Etsy Shop

The final gradation is to open the virtual doors to your Etsy shop. You can do so by selecting the “ open your shop ” button after entering your accredit wag information .

For More Visibility on Etsy, Prioritize Descriptions and Visuals

You want to make the best foremost impression possible when prospective customers discover a intersection in your Etsy denounce, particularly if they ’ ve found you from either the Etsy search bar or other search engines. Two best practices for this are to prioritize timbre product descriptions and incorporate effective images or videos into your list. “ With each intersection, it ’ second authoritative to create descriptive overviews and use a distribute of synonym in describing it, ” says Meaghan Thomas, owner of PinchSpiceMarket, a Kentucky-based Etsy denounce that sells bonny trade spices. “ Thinking a footstep by precisely the keywords is authoritative, besides. You ’ re trying to sell your merchandise to people, so giving as a lot relevant detail about it is helpful. ” Visuals are equally important to garner care for the items you ’ ra sell. “ Videos are besides key to catching eyeballs and sales, ” Thomas adds. “ Etsy ’ s algorithm loves when you have a television showing your product or how to use it. They are easy to do and don ’ t have to be heavily produced. ”

Does It Cost Money to Start Selling on Etsy?

It ’ randomness loose to start an Etsy shop. however, sellers pay Etsy listing fees and transaction fees. You ’ ll besides remit payment process fees if you use the Etsy Payments sport. The fee schedule is as follows :

  • Listing fees: $0.20 per listing (each listing is valid for four months)
  • Transaction fees: 6.5% of the order amount, including shipping (and gift wrapping if applicable)
  • Payment processing fees: $0.20 per transaction if you use Square when selling on-site

How Do Taxes on Etsy Work? 

Some sellers are national to VAT or value-added tax. It must be added to the transaction and payment work fees if applicable. Check the fine print from Etsy and with your industry to determine if you ’ ll indigence to add any other taxes or fees to your listings and ensure guileless price. If you love to create physical or digital products and find visibility to be your biggest problem, becoming an Etsy seller might be a perfect fit for you. Set up an report and start listing items today to accelerate the trial-and-error action and move yourself that much closer to making money on-line.

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