The answer to the question “How much can you make on Etsy?” is this: It’s entirely dependent on how much effort you put in.
If you want to sell products on Etsy to get a little cash flowing, then you’ll more than likely end up with a little more disposable income.
If you want to start an Etsy store to fund your house renovations, well, that’s probably not a very wise idea. At least, not in the short term.
Many Etsy sellers are pretty open with how much they earn. But in reality, each seller is different. Different products, materials, audiences, and so on. Not to mention, some Etsy sellers are hobbyists working less than 10 hours a week. While other full-time sellers can put in well over 45 hours a week.
Median income for Etsy sellers
According to the U.S. Bureau of Labor Statistics, the median income for craft and fine artists was $49,120 in May 2020.
And while that’s a pretty reasonable number to shoot for, we think you can make even more money selling on Etsy with just a little diligence in how you operate your business.
So, how much can you make on Etsy, and how can you make more? In this article, we’ll look at both of those open-ended questions and do our best to give you an idea.
Sell the right product to increase how much you make on Etsy
The money you make is very dependent on the products you sell. And the products you sell are very dependent on what’s already out there.
For example, if you want to make $49,120 a year by selling personalized jewelry, you might find it pretty difficult. That’s because that market is already flooded with so many sellers selling very similar products.
If you want to make $49,120 a year selling Christmas decorations, you’ll also probably struggle. Not only is that a flooded market, but the demand for such products is entirely seasonal.
The basic economic principle of supply and demand is the best way to find a product to sell to make money.
Using tools like Marmalead, you can take a closer look at the number of people searching for specific products. For example, just how many people are searching for personalized jewelry? What’s more, Marmalead can also show you keywords with low competition and high demand. This tactic is called niche marketing and is a great way to sell more and profit more.
Niche down to stand out
There’s not too much of a demand on Etsy for vintage Soviet kitchenware. But there are some shoppers out there, and that market isn’t being catered too overly well.
This means it could be an ideal market for you to dominate and become the go-to Etsy shop selling Soviet-era kitchenware. And once you’re dominating this niche on Etsy, you can then expand (in either direction!). Soviet-era clothing, Soviet-era furniture, Soviet-era home decore – or the other direction – vintage kitchenware, gothic kitchenware, and budget kitchenware.
This is just one example – Soviet kitchenware may not be a complete niche market that’s not being met on Etsy. But the fact is the same – find a product with a small demand that’s not being met, supply that demand, and then expand.
Etsy stores that do this are primed to make small but consistent profits throughout their lifetime.
Who are you selling to?
Price-sensitive buyers can have a significant impact on how well your products sell. If you’re selling a product that’s appealing to people because it’s cheaper than your competitors, then you’re appealing to their price-sensitive nature. This means they may be more inclined to buy your product over the other expensive options out there.
However, this is often a race to the bottom. By undervaluing your product, your profit margins remain low, and the quality of the products you sell may come into question.
That’s why it’s more profitable to appeal to a customer’s sense of value.
In other words, you don’t have to be the cheapest out there, but you can provide your customer with a lot of products for what they’re paying. For example, custom packaging makes customers feel like they really got a lot more than they bargained for. More extended return and exchange windows, better photos, more personalization options – these are all elements of your Etsy listing that can help you increase profitability while also growing your sales.
How much you can make on Etsy depends on your overhead
One thing about selling on Etsy is that the fees can quickly add up. These fees dig into your profits and ultimately lower the amount you make. That’s why it’s essential to know as much about your fees before you start selling your products.
Knowing the fee structure can also help you price your products better and keep healthy profit margins.
Rule of 30%
Speaking of profit margins, a 30% profit margin is the rate that many eCommerce stores default to. And it’s a good target for how much you can make on Etsy when you’re just starting out. Of course, this varies from product to product, industry to industry, but for your Etsy store, it’s a healthy number to start with.
30% profit gives you enough coin to reinvest into your business to sell more products or expand, have flash sales and lower your prices to sell a little more, but also keep a nice amount in your own bank account.
How to profit more than you already are
Have you already got an Etsy store and want to squeeze a few more pennies from it? How much more do you think you can make on Etsy with just a few simple tweaks to your day-to-day?
Well, here are a handful of tips to increase the profitability of your Etsy shop.
Understand your data to make more on Etsy
The Etsy dashboard is comprehensive. There is a lot going on there, and it can get a little confusing. But spending the time to sit down and understand the data can help you make more informed decisions for your Etsy business, with the ultimate goal of increasing profits.
For example, is your traffic seasonal? What products are selling the best?
Answering these questions helps you make better decisions and ask more pertinent questions. Can you bundle low-priced products with higher-priced ones? How can I increase my average order value?
Once you start asking questions like this, you’re well on the way to making data-backed decisions and increasing the profitability of your Etsy store!
Read your reviews
Your customers are a gold mine of information. And their feedback is a gateway into their thoughts, feelings, and opinions of the entire process of buying from you.
If there’s positive feedback about what you’ve done well, keep doing it, or even do more of it. If there’s negative feedback, dive deeper and look at why that feedback is negative and do something about it.
Improve your sourcing to increase how much you make on Etsy
Where do you get the products that you sell on Etsy? Do you make it yourself, or do you buy it? What about the materials you use?
If you make your own products, consider lowering the costs involved with making that product. In other words, you could attempt to use materials that are less expensive.
A few cents here, a dollar or so there – it all adds up, especially when you start to sell more.
Another way to profit more from products you make is to work more efficiently. There’s no doubt that your time has been factored into the overall sales price of your product. So if you can speed that up, that’s more money in your pocket – especially if you only have time to run your Etsy store for a few hours a week!
If you source your product from elsewhere and sell it on Etsy (for example, print on demand or drop shipping), it’s worth looking for new suppliers regularly. Not just to find the product cheaper, but to get it delivered quicker or sell a better product. If the quality of your product goes up, then your prices can, too.
Sell to a different customer
What’s the difference between a pair of $39.95 Calvin Klein briefs and the Fruit of the Loom 10 packs you can get at Walmart for $5?
Or the difference between Loius Vuitton luggage and something generic from Amazon?
The answer is not much. In terms of material and build quality, probably not a lot. Yes, the name is different, but it’s the name that helps those products appeal (or not appeal) to a particular customer.
And you can change the people your Etsy store appeals to with a slight rebranding. Take higher-quality lifestyle photos, create a new description that focuses on quality or exclusivity, and generally make your product look like a million bucks. You won’t be able to change the price tag to that figure, but you can undoubtedly increase prices and appeal to an audience that isn’t looking for “the cheapest” product on the market.
How much can you make on Etsy? It’s up to you
“How much can you make on Etsy?” is a tricky open-ended question to answer. The truth is that it’s variable and, as you’ve seen throughout this article, very dependent on how much effort you want to put in, as well as the products you want to sell on Etsy.
If you’re looking for an idea for something to sell on Etsy, we’ve got a host of other articles that are sure to inspire you. What’s more, they’re based on our own keyword data and trends, so you can be sure that people are waiting to buy what you’re selling!