If you’re looking to turn your creative passion into a thriving business, Etsy is the ideal platform to start. Selling on Etsy allows you to reach a global audience interested in unique products. And it’s the only marketplace dedicated to “keeping commerce human.” Here’s a step-by-step guide on how to sell on Etsy.
Key Takeaways
- 🌐 Etsy is a global marketplace ideal for sellers of handmade, vintage, and unique products, providing tools and resources tailored to help small businesses succeed.
- 🔎 Optimizing your Etsy shop with high-quality photos, detailed descriptions, and effective SEO strategies can significantly increase your visibility and sales on the platform.
- 📢 Delivering excellent customer service, including prompt communication and timely shipping, is crucial for building trust, earning positive reviews, and achieving long-term success on Etsy.
Table of Contents
- How to Set up an Etsy Shop
- Stocking Your Etsy Shop
- Getting Paid on Etsy
- Optimizing Your Etsy Shop for Search
- Providing Excellent Customer Service
- Growing Your Etsy Business
- Is Selling on Etsy Worth it?
- Active Buyers on Etsy
- How to Sell on Etsy FAQ
How to Sell on Etsy in 6 Simple Steps
#1. How to Set up an Etsy Shop
First, create an Etsy Seller account if you don’t already have one. Go to Etsy.com and create a new account.
Then click on “Sell on Etsy,” and follow the prompts to open your shop.
You’ll be asked to set your goals before you can do anything else. Just answer these how you see fit (they don’t change the outcome of your seller account).
Choose your shop’s language, country, and currency. Then it’s time to choose a shop name. Pick a memorable name that reflects your brand. Keep it simple, relevant, and easy to spell.
#2. Stocking Your Etsy Shop
Your first product listing won’t define your shop, but it’s a big step for your business. Get used to this listing form because this is how you’ll create new Etsy listings moving forward.
Whether you sell physical or digital products, the listing form will ask you questions along the way to help categorize your listing. Take your time to answer these questions correctly so you don’t run into any issues with account suspensions down the road.
Not sure what to sell? These are some of the top Etsy searches that buyers are actively searching for right now.
Once you know what to sell on Etsy, it’s important to take high-quality product photos of your items. Since this is the first thing shoppers will see, you want to draw their attention and get them to click. Etsy allows up to 10 photos per listing, so show off your product from multiple different angles.
Then it’s time to write compelling product titles and listing descriptions, optimized for Etsy search. Use relevant keywords that buyers might search for. And describe your product in detail, including size, color, material, and any special features.
Set up shipping profiles with accurate shipping costs and delivery times. We recommend you offer free shipping since this is now typically the standard.
Then you can add Etsy’s return’s and exchange policy or create your own.
#3. Getting Paid on Etsy
Now it’s time to select how you’ll get paid. This is depends on whether you’re an individual hobby seller or a business. If you’re registering as a business, you’ll need an Employee Identification Number (EIN).
Then you can connect your bank account and start accepting payments from your customers. You’ll also need to select how you pay Etsy’s fees as well as Etsy’s one time $15 set-up fee.
Once your first payments start to roll in, you’ll really get a feel for your prices. If you’re not making enough money to sustain your business, you may need to take a second look at your profit margin.
Ultimately it’s best to do your research to come up with a fair market price that covers your costs and leaves you with a decent profit. And don’t forget to factor in Etsy’s fees and shipping costs.
#4. Optimizing Your Etsy Shop for Search
Use Marmalead to research Etsy keywords to include in your listings. These keywords should go in your listing’s titles, descriptions, and tags. The best tags for Etsy are ones that increase your shop’s visibility and drive more traffic to your listings.
It’s also important to choose the most relevant categories and attributes for each product to help buyers find your listings easily. This also helps your listing appear in relevant search results.
Then get the word out about your new shop by sharing your listings on social media, in your email newsletter, or by using Etsy Ads.
#5. Providing Excellent Customer Service
Once you start getting traffic from Etsy search and other external sources, it’s time to start running your business like a well-oiled machine. Answer customer questions and messages quickly. Good communication builds trust and can lead to positive reviews.
Speaking of reviews, you need to get as many 5-star reviews as possible. This shows Etsy that you sell a good product and offer excellent customer service—and can also lead you to become a star seller.
It’s also important to always ship orders on time, and provide tracking information. You can also consider adding a personal touch, like a thank-you note, to each order.
All of this helps personalize your business makes sure you fulfill your customer’s needs. Doing so will have a positive impact on your Etsy listing quality score, which will result in greater visibility on the marketplace.
If a problem does arise with customers, be proactive in resolving it. Offer refunds or exchanges when necessary to keep your customers satisfied.
#6. Growing Your Etsy Business
Once your Etsy business is running you’ll need to make sure customers keep coming in. This means developing new product ideas, doubling down on what works, and tracking your shop’s success.
Use Etsy’s built-in traffic stats to track your shop’s performance over time. See what’s working and where there’s room for improvement.
As you grow, consider adding new products or variations to your shop. Keep an eye on trending product designs and popular descriptive keywords—and how you may be able to incorporate these elements into your existing products.
Marmalead offers many great tools to help sellers get their products in the hands of more shoppers. From SEO strategies to trending product ideas, selling on Etsy has never been easier.
Finally, keep your customers coming back by offering promotions, sending newsletters, and creating the best possible product at a competitive price.
Is Selling on Etsy Worth it?
Etsy has over 96 million active buyers who are specifically looking for unique, handmade, vintage, craft supplies, and digital products. If your products fit into these categories, you have access to a global market that’s already interested in what you offer. But it’s not for everyone.
Here are some pros and cons to selling on Etsy:
Pros of Selling on Etsy
- Its platform is designed to support small, independent sellers—making it the ideal choice for beginners in eCommerce.
- You have access to tools that help you manage your shop, track analytics, and optimize your listings. And Etsy also helps promote its sellers through various marketing channels, including email campaigns, social media, and through landing pages like ‘Made For You.’
- Setting up a shop on Etsy is straightforward, even for those who are new to eCommerce. The platform provides step-by-step guidance on how to create listings, set prices, and manage orders. This makes it easy for creatives to focus on their craft rather than on the technical side of running an online shop.
- Etsy has a strong community of sellers who support each. This sense of community can be beneficial for networking, learning, and growing your business.
Cons of Selling on Etsy
- Etsy charges several fees—including a $0.20 listing fee per item, a 6.5% transaction fee, and payment processing fees (3% + $0.25 per transaction). These fees can add up and eat into your profits, especially for low-margin products.
- With 8.3 million active sellers, competition on Etsy can be fierce. Standing out in a crowded marketplace requires strong branding, excellent product photography, and strategic use of SEO. New sellers may find it challenging to gain visibility without investing in advertising or SEO tools.
- While Etsy provides an easy-to-use platform, it has limited customization options compared to building your own website on platforms like Shopify. If you want complete control over your brand and customer experience, Etsy’s templated shop design may feel restrictive.
- Selling on Etsy means relying on their platform for your business. If Etsy changes its policies, fees, or algorithms, it can directly impact your business. Some sellers prefer to diversify their sales channels to reduce dependence on a single platform.
Is It Worth It?
Selling on Etsy can be highly rewarding for sellers who offer the right kind of products and are willing to navigate the platform’s challenges. It provides access to a large, engaged audience and supports small businesses with various tools and resources. However, the fees, competition, and limited customization options may be drawbacks for some sellers.
For many creative entrepreneurs, Etsy is a great place to start and grow an online business, especially if you’re focused on handmade or unique items. However, it’s important to assess whether the platform aligns with your specific business goals and if the potential rewards outweigh the costs and challenges.
Active Buyers on Etsy VS. Other Platforms
For sellers of handmade and vintage items, Etsy remains a strong choice due to its niche focus and solid buyer-to-seller ratio. For comparison, here’s a breakdown of active buyers to shoppers from other popular eCommerce platforms:
Etsy
- Active Buyers: 96 million
- Active Sellers: 8.3 million
- Buyer-to-Seller Ratio: ~11.6:1
eBay
- Active Buyers: 159 million
- Active Sellers: 20 million
- Buyer-to-Seller Ratio: ~7.95:1
Facebook Marketplace
- Active Buyers: Over 1.185 billion users
- Active Sellers: Estimated in millions
- Buyer-to-Seller Ratio: ~118.5:1
TikTok Shop
- Active Buyers: Estimated 8 million (U.S.)
- Active Sellers: Estimated 500,000
- Buyer-to-Seller Ratio: ~16:1
Amazon Handmade
- Active Buyers: As part of Amazon’s broader 300+ million active customer accounts globally, the specific number of buyers who shop exclusively on Amazon Handmade isn’t disclosed.
- Active Sellers: 100,000
- Buyer-to-Seller Ratio: ~3,000:1
How to Sell on Etsy FAQ
How do I start selling on Etsy?
To start selling on Etsy, you need to create an Etsy account, open your shop, and set up your profile. You’ll then need to list your products, which involves uploading high-quality photos, writing descriptions, setting prices, and choosing your shipping options. Etsy provides a step-by-step guide to help new sellers get started.
What can I sell on Etsy?
Etsy focuses on handmade items, vintage goods (at least 20 years old), and craft supplies. Sellers are encouraged to offer unique, creative products that fit within these categories. Digital products like printables and downloadable templates are also popular on Etsy.
What are Etsy’s fees for sellers?
Etsy charges a $0.20 listing fee per item. When you make a sale, Etsy takes a 6.5% transaction fee based on the item’s price (including shipping). Additionally, there is a payment processing fee, which is 3% + $0.25 per transaction in the U.S. Fees may vary slightly depending on your location.
How can I make my products stand out on Etsy?
To make your products stand out, focus on high-quality photography, detailed and accurate descriptions, and competitive pricing. Use Marmalead to optimize your listings with relevant keywords. Engaging with customers, offering excellent customer service, and maintaining a consistent brand identity can also help your shop stand out.
How does shipping work on Etsy?
As a seller, you can set your own shipping rates or use Etsy’s calculated shipping, which determines costs based on the buyer’s location and the item’s weight and dimensions. You can print shipping labels directly through Etsy, and the platform allows you to offer discounts on combined shipping for multiple items.
How does Etsy handle taxes for sellers?
Etsy collects sales tax on behalf of sellers in states or countries where marketplace facilitator laws exist. This includes the U.S. and several other regions. For other locations, it’s the seller’s responsibility to manage and report their taxes. Etsy provides tools to help sellers manage tax information.
Can I sell digital products on Etsy?
Yes, Etsy supports the sale of digital products such as printables, downloadable art, templates, and more. Sellers can upload digital files that buyers can download after purchase. This is a popular category on Etsy and a great option for creative sellers.
How does Etsy protect sellers?
Etsy offers several protections for sellers, including a case resolution system for disputes and protection against fraudulent transactions. The platform also has policies in place to ensure a fair marketplace, including guidelines for intellectual property and prohibited items.
What are Etsy’s CUSTOMER SERVICE & RETURN policies?
Sellers on Etsy can set their own return policies, but it’s recommended to clearly state these policies in your shop’s terms. Etsy encourages good customer service practices, such as responding to messages promptly and handling disputes professionally. The platform offers a resolution center to help mediate issues between buyers and sellers.
Over to You
Selling on Etsy offers a unique opportunity to transform your passion into a thriving business. With a global audience eager for handmade, vintage, and unique products—Etsy provides the perfect platform to showcase your creativity.
From setting up your shop to optimizing your listings and delivering excellent customer service, every step you take brings you closer to building a successful online shop.
By following these steps and consistently refining your approach, you can build a successful Etsy shop that attracts an engaged target audience.
Good luck—and if you have any questions, post them down in the comments below!
As always, happy selling!
