How much can you make on Etsy? Well, it depends on how much effort you’re willing to put in. If you plan to use Etsy as a side gig, you’ll likely only make side-gig money. But if you treat Etsy like a business, you could wind up quitting your day job.
Many sellers are pretty open with how much they earn on Etsy. Some make only a few thousand a year, while others make six figures.
But in reality, each seller is different. They use different products and materials, target different 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 over 10 hours a day.
What’s the median income for Etsy sellers?
According to the U.S. Bureau of Labor Statistics, the median income for craft and fine artists in 2021 was $49,960 per year, or $24.02 per hour.
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 few tweaks to how you operate your business.
If you’re ready to make more money on Etsy, then let’s jump right in.
To increase your earnings on Etsy, you need to start by selling the right products.
Your Etsy income isn’t entirely dependent on the products you sell, but it’s a major factor. There are many reasons why you should or shouldn’t sell something, like market demand. But the product you sell also depends on the products that are already being sold.
If you intend to meet the competition head-on, are you willing to undercut their prices or offer a superior product?
How much can you make on Etsy selling jewelry?
If you want to make $49,120 a year by selling personalized jewelry, you might find it pretty difficult. It won’t be easy because that market is already flooded. Of course, if you can deliver a steady flow of superior products at a competitive price, your chances of earning a livable wage will increase.
Now, if you want to make $49,120 a year selling Christmas decorations, you’ll also probably struggle. Not only is this also a flooded market, but the demand for such products is entirely seasonal.
What can you sell on Etsy?
When it comes to selling on Etsy, you can sell anything you want as long as you follow Etsy’s guidelines. But if you also follow the basic economic principle of supply & demand, you’ll find that some Etsy products have a higher success rate than others.
Using tools like Marmalead, you can take a closer look at the number of people searching for specific products.
For example, do you know just how many people are searching for personalized jewelry? With Marmalead, you can find out.
Moreover, Marmalead can show you keywords with low competition and high demand. This tactic is called niche marketing and is a great way to increase revenue.
Can you make more money on Etsy by selling niche products?
The simple truth is if you can find a product with a small demand that’s not being met, you can be one of the few sellers offering that product in your Etsy shop.
If you do this, you’re primed to make small but consistent profits throughout the life of your business.
For example, there’s not much of a demand on Etsy for vintage Soviet kitchenware. But there are more shoppers out there looking for these products than sellers offering them. Which means the market isn’t being catered to 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. Soviet-era clothing, Soviet-era furniture, Soviet-era home decor – or try the other direction – vintage kitchenware, gothic kitchenware, or budget kitchenware.
Should you sell to cheap Etsy shoppers?
If your target audience is price-sensitive, it will significantly impact how much you can make on Etsy. And 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 than the other expensive options. But this also means you’ll find yourself in a race to the bottom. And by undervaluing your product, your profit margins will remain low, and the quality of the products you sell may come into question.
That’s why appealing to a customer’s sense of value is more profitable.
In other words, you don’t have to be the cheapest out there, but you can provide your customer with a superior product 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, and more personalization options – these are all elements of your Etsy listing that can help you increase profitability while also growing your sales.
How much can you make on Etsy? It 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 everything about Etsy fees before selling your products.
Knowing the fee structure can also help you price your products better and keep healthy profit margins.
The 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 shop, 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, and keep a nice amount in your bank account.
How can I earn more on Etsy?
Here are 4 tips to increase your income and squeeze more profits from your Etsy shop.
#1. Understand the data
The Etsy dashboard is comprehensive. There’s a ton of data, and it can get 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 about your business. Can you bundle low-priced products with higher-priced ones? How can you increase your 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 shop!
#2. Read your reviews
Your customers are a gold mine of information. And their feedback is a gateway into their thoughts, feelings, and opinions about 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, look at why that feedback is negative, and do something about it.
#3. Improve the way you source materials
Where do you get the products 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 less expensive materials.
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 your products 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 shop 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 less expensive products but to see if you can get them delivered quicker or offer a better product.
And if your product quality goes up, your prices can too.
#4. Sell to a different target audience
What’s the difference between a pair of $39.95 Calvin Klein briefs and the Fruit of the Loom 10-pack 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.
You can change your target audience with a slight rebranding and a new keyword strategy. Take higher-quality lifestyle photos, create a new description focusing 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 you can make on Etsy is up to you.
You won’t know how much you can make on Etsy until you start. Some sellers bring in over $50,000 a year. While others only make a couple grand.
The truth is it depends on how much effort you want to put in and the products you sell.