How to Sell on Etsy and Turn it into a Successful Business

In this day and age, if you are a creative mind, the start of your entrepreneurial journey is a simple ‘how to sell on Etsy’ Google search away. Etsy brings emerging artists a unique platform to showcase and capitalize on their creativity. Moreover, it offers befitting solutions like marketing tools, product labels, and easy delivery to empower their entrepreneurial side. 

This article revolves around understanding how to sell things on Etsy, what essential steps you can take for better visibility, how to understand the fees involved, and implement strategies to stand out in a competitive marketplace.

Quick Guide:

• What is Etsy?
• How to sell on Etsy?
• How much does it cost to sell on Etsy?
• Why to sell on Etsy?
• Managing orders and customer service on Etsy
• Tips for marketing for your Etsy shop
• A business that gained rapid success with Etsy: Winner’s story
• Best strategies on how to sell on Etsy
• Challenges and mistakes to avoid while selling on Etsy
• Final thoughts

What is Etsy?

Etsy is a digital haven for handmade articles, vintage or collector’s items, art supplies, and everything creative. This is where art lovers flock over for handmade home decor, artwork, artisanal consumables, and niche items such as carved jewelry or hand-dyed fabrics. 

Here, products can be physical or digital. If you’re a passionate creator, finding a platform to showcase and earn from your craft, Etsy is the place to be. 2023 recorded 9 million active sellers on the platform; almost 1.5 million more than 2022. After all, if you have access to a platform that puts your art in front of 95 million eager customers, it’s an opportunity too good to let go. 

On top of that, you get a rapid entry into a marketplace by leveraging Etsy’s established infrastructure and low upfront investment. Once you know how to boost visibility on Etsy you’ll crack the code to reaching the target customers efficiently— no need to spend on domain registration and hosting fees. 

Etsy’s rapid growth trajectory

During the coronavirus pandemic, the most popular categories among handmade Etsy sellers worldwide were home & living, art & collectibles, and jewelry. 

People not only prioritized decorating their living space but for many, they rediscovered their creative side and started their own business on Etsy. 

The prominence of Etsy hence increased post-pandemic and the popularity of handmade home decor and keepsake items peaked leading to nearly 13.5 billion U.S. dollars in annual gross merchandise sales volume (GMV) in 2021— a massive leap from 13.5 billion U.S. dollars in sales in 2020.

How to sell on Etsy?

1. The signup process

The entry point to your question ‘how to start selling on Etsy?’ is its sign-up process. The process of setting up the shop will be succeeded by setting up the shop, so let us take you through the process.

To start, go to the website and,

• Click ‘Open a shop today’ 
• Add email address and tap Continue

• Create your account by entering your name and password and clicking on ‘Register’.

2. Setting up a shop

Once you are through with your registration, it’s time for you to create an Etsy shop. Before you’re led to the process Etsy will ask you to answer a few questions to know your business agenda. You can answer them or simply choose to skip them.

3. Set your shop details

Here in this step, you’ll be required to set shop preferences that will act as the foundation of the storefront. However, you can change this later so just get started. This step will include you naming your shop, adding shop listings, billing details, 

• Now set ‘Shop Preference’. Add language, country, currency, etc. Followed by Save and Continue.

• Name your shop (between 4-20 characters) and hit Save and Continue. 

• Now ad listings to your shop by clicking on ‘Stock your shop’.
• On the Create a Listing page, add photos, videos, listings, and click Save and Continue.

• Add as many listings as you require, followed by Save and Continue.

You can add multiple or choose to add it later. 

• Now you’re led to the payment settings page where you choose your business type and your Taxpayer details. Remember to connect your bank account with Plaid using two step authentication to keep your data safe. Connect Then Save and Continue. 

• Confirm by clicking ‘Resend Confirmation mail’.
• Now, on the Set up Billing page, enter your Credit card information, billing address, etc. 

4. Design your storefront

Now when products are added to your store listing, time for your storefront to get a makeover! Proceed to know your storefront must reflect your brand persona and make changes accordingly. This step will include adding a customized store banner, tweaking the listed items, adding an ‘About’ section, and your social media handles till it looks like it is ready for launch. 

Note: If you’re wondering how to sell on Etsy and yet not ready with your product listing details, you can vaguely sprinkle information on your ‘Stock your shop’ section. You can easily add the details later once your shop opens.

How much does it cost to sell on Etsy?

There are several divisions in the types of fees involved while you count your cost to sell on Etsy. However, there is no upfront monthly fee but there are charges for individual steps. Here is a breakdown of all the associated charges you must be aware of while trying to understand how to sell on Etsy:

For listing:

• Etsy charges $0.20 for the listing of each item. The duration of each listing is four months or till all of it is sold out. 
• In case the item doesn’t sell out within the span of 4 months, it will require a renewal. Which means you’ll have to pay another $0.20 to get it listed. 
• For a listing having multiple items or SKUs, once the stock gets over, it requires a re-listing.
• Listings are automatically renewed. 
• For a multi-quantity listing $0.20 is charged for each item.

For transaction:

• There is a flat 6.5% transaction fee levied upon the total sale price including what a customer is paying for the item, gift wrapping, and shipping.
• Whenever a sale takes place the fee is automatically deducted. 

For payment processing (while using Etsy Payments):

• Etsy Payment fees are charged as 3% + $0.25 per payment made which varies from one county to another.

Other added fees:

• Currency conversion fees of 2.5% are levied when buyers are paying in a different currency. 

Coming to the total cost estimation, when sellers sell on Etsy they can expect up to 20% to 25% of the sales fees. 

For example: Say a seller is selling a product at $100 within the US, 

he pays a $0.20 listing fee, a $6.50 transaction fee (i.e, 6.5% of $100), plus a payment processing fee of $3.25 leading to a total of $10.95. So, his Etsy fees are around 11% of the selling price.

Why to sell on Etsy? 

While you’re considering starting your business you might have a lingering question at the back of your mind— is selling on Etsy worth it? Let us give you a few reasons to consider it and start your Etsy business. 

Niche market focus

Etsy has carved out a distinct niche by exclusively offering handcrafted and vintage goods, which differentiates it from larger e-commerce platforms like Amazon. This specialization allows sellers to target a specific demographic that values creativity and uniqueness, fostering a community of buyers who prefer personalized items over mass-produced alternatives. 

In contrast to mass-produced items found on larger marketplaces like Amazon, Etsy remains synonymous with quality and individuality, catering to those in search of authentic, handmade goods that stand apart.

Read more: Amazon vs. Etsy: What’s the best option for you?

SEO and marketing tools

Etsy makes marketing and promotion a cakewalk for new business owners. Built-in marketing tools and Etsy ads are easier and less complex compared to Google search engines. So while you gather some hands-on experience on how to sell on Etsy and decide to skip hiring a marketing expert, you can still carry on with your business making a good enough range of profit. 

Explore more: Etsy SEO: 13 Key Factors for Sellers

Low startup costs

It is a relatively ‘easy on the pocket’ entry point for new businesses compared to independent websites or major marketplaces such as Amazon. But if you’re wondering ‘how to sell on Etsy for free’, we’re sorry to disappoint. Although it’s lower than the rest, it’s not completely free of charge. If you have as little as $15 you’re good to go. You have options like print-on-demand or digital products which don’t require an elaborate inventory cost. The nominal upfront fee makes it fit for artists to chase their entrepreneurial dreams. Etsy doesn’t charge any commission rate and the fee structure is kept transparent.  

Targeted advertising options

Etsy’s advertising system allows sellers to promote their products directly within the platform through Etsy onsite ads are an in-house cost-per-click (CPC) ad model offering budget-friendly ad solutions to help upscale businesses. Sellers can be specific while laying out marketing strategies, budgets, and specific target keywords. 

For example, if the SVM jewelry store has a 10% standard conversion rate, if after a paid ad campaign it reaches 400 customers daily, it will still have 40 new customers daily. Now imagine the profit margin compared to before!

Shipping tools

Etsy has offered a dedicated section for sellers offering shipping tools; so if you’re wondering how to sell on Etsy, just know half of your workload is taken care of. 

• The shipping profile tool enables you to curate a set of customized shipping rules that lets you take charge of your order fulfillment. These shipping guidelines can be replicated for multiple listings. 

• Shipping labels offer you services to purchase and print labels from Etsy. on top of that choosing USPS shipping labels will help you save up to 30% on delivery. When you sign up for USPS, you get multiple delivery options like, priority mail, and first-class package service which allows you to cater to a wide variety of buyers with different requirements.

• The Smart Pricing tool is of great use while you’re newly implementing your knowledge on ‘how to sell on Etsy’. It lets you have a transparent outlook on shipping cost calculations.

Special feature

Abandoned cart email is an automated feature that reminds customers to return to their shopping cart page once they drop off before completing the purchase. This slight nudge can be of great advantage in encouraging them to carry it forward and re-engage them in the purchasing process.

For example: a seller may for some outside interruption drop off while making a purchase. The abandoned cart feature will remind them to complete the process which also adds to a delightful customer experience. 

So, to end your confusion of ‘Is selling on Etsy worth it?’. It absolutely is, considering the market exposure, penetrating cost, shipping, and advertising tools.

Managing orders and customer service on Etsy

Etsy comes with a complete suite of built-in features to help sellers manage their stores better.  It considers several aspects such as customer satisfaction, easy handling of storefront and ultimately managing sales. Now that you know how to sell on Etsy, let us take you through how to manage your orders in the best way possible. 

Etsy’s Shop Manager is the control center for sellers. Its key functionalities include:

• Order Dashboard feature allows sellers to view and track orders and shipments, and initiate customer interactions under one platform for complete transparency of transit status. 

• Etsy allows sellers to create custom order statuses beyond the default options. This is to create transparency between sellers and buyers to keep track of the order status. This is especially important for custom-made articles as they proceed in a unique flow. 

• In case there is a delay, it will be communicated to customers effortlessly. Go to the Shop Manager and click on “Orders & shipping”. You can ‘Add a new step’ and add a new status indicating the stage of the process the product is in (like, “In Production,” or something specific as “due for final coat of paint” etc.). 

• This is for the sellers who know how to sell on Etsy and purchase labels from the platform. The Order auto-updating feature automatically updates the order status and displays the order status to customers making the experience even more fluid.

• To add a touch of personalization, sellers can include a note dedicated to the buyers. Often this is used to notify that a customization request has been addressed. 

• Etsy’s messaging system enables quick communication between sellers and buyers ensuring both parties are well connected throughout the purchasing process. 

Tips for marketing for your Etsy shop

Your journey towards creating a profitable Etsy store starts with you building well-rounded marketing channels. Here are some of the best-kept marketing tips to support your efforts while navigating your way through how to sell on Etsy.

Optimize for SEO

This is a no-brainer. Optimizing product listings with appropriate keywords is an utmost necessary step to increase visibility and reach the target audience. 

You can use tools like Etsy search bar suggestions to figure out all the popular searches. 

Use Google Keyword Planner to find and incorporate keywords in product titles (preferably in the beginning) and scatter a few across product descriptions. Do not miss out on including LSI or long-tail keywords that are less competitive. For example, choose ‘crystal wine glasses’ instead of ‘glasses’ to add more specification in LSI keywords. You’ll grow more adept as you learn how to sell on Etsy more effectively, with time of course.

You’re allowed to use up to 13 tags on Etsy for each listing. We advise you to utilize each of the slots using different variations of the main keywords to boost searchability.

Optimize your shop’s “About” section

Take a step to help your customers know your brand better. Tell your story in the About section. Explain what your brand stands for, the story behind your product, your vision and you’re trying to make an impact. This will help them connect with your brand and enhance recognition. 

For example: a ceramic vessel brand on Etsy, ‘KOLOS Ceramics’ has developed its ‘About’ section like

Leverage social media

Social media platforms are the secret sauce to extend your reach and get your brand recognized as you discover how to sell on Etsy more efficiently. It fused strategically, the massive reach and visual appeal of Instagram, Tumblr, and Pinterest, or creative platforms such as Behance, can bring enough attention to your Etsy shop. 

Consistently post on these platforms to get an added push from these platform algorithms. Document your work, customer testimonials, and the creation process; let people connect with your vision to establish a loyal following. You can also take a step further to increase your visibility on social media by collaborating with influencers. It is particularly effective when you have the budget and inventory to cater to the masses. 

Email marketing

Incentivize your customers to sign up for your newsletters and new stock updates. Now you have their contact information to build an email list. This sets you up for easily handling targeted promotions and personalized messages to establish a connection with them and maintain them. 

Guess what! Now you can run loyalty programs like ‘subscriber-only’ discounts and incorporate tools like ConvertKit to obtain shop analytics. These are particularly useful when you are growing your platform and discovering how to sell on Etsy. 

Content marketing

Here’s a quick strategy. If you’re selling crocheted tops and sweaters on your Etsy store, write posts about yarns, knitting patterns, etc. Post them as your personal blog and add a link to your Etsy store. 

You can post vlogs on YouTube or TikTok showcasing your knowledge, tutorials, or DIYs; it just has to be relevant to your product offering. Stay assured, once the content finds your niche customers your business will take off in no time!

Utilize Etsy ads

Etsy’s built-in advertising platform is ideal for businesses with ample funding. These paid ads can directly promote your listings and boost sales during peak hours. The fee for offsite ads for high-volume sellers is 12% (sellers incurring sales worth $10,000 in the past year) and for lower-volume sellers, it is 15%.

Collaborate with other sellers

Find the complimentary products for your offerings, then collaborate with the sellers of that specific product as a cross-promotion. Say you’re selling hand-stitched jackets, you can collaborate with a brand making handmade jewelry. 

But how to communicate with co-creators? Join Etsy teams, an open forum to share tips and support each other’s businesses so that your journey towards learning how to sell on Etsy. It made the routes clear!

Stay consistent towards your marketing goals and adapt to changes based on analytics to reap the most benefits.

A business that gained rapid success with Etsy: Winner’s story

Founded by Alicia Shaffer, Three Bird Nest, is a prominent example of a small business making it big on Etsy. Back in 2011, Alicia found her passion for making handmade bags and she decided to monetize her boho accessories. It did not take long for her to acquire a niche customer base on Etsy which led her to earning $80,000 in monthly sales in just a few years. 

The strategic approach consisting of a blend of efficient product listing, social media, and brand building eventually took Three Bird Nest to a whole new level of success where the annual revenue was at $1 million! Her success story has experienced the morphing policies of Etsy yet she stayed consistent in delivering quality products. 

The top-notch branding by Three Bird Nest with an unaltered focus on niche products held on to their core customers while extending the market. This is an excellent example of how small businesses can gain massive success in niche product-centric marketplaces such as Etsy.

Best strategies on how to sell on Etsy

Sellers must consider advanced practices and strategies to succeed in a competitive market like Etsy. After all, the purpose remains the same. Making your products more appealing than the rest. Let’s take a look at how you can strategize your product pricing, niche selection, and licensing to make a profit.

Advanced pricing strategies

Think from a customer’s perspective. The more economical a product is in comparison to its competitors, the higher the likelihood of it being chosen by a customer. Once you get a clear picture of how to sell on Etsy, we suggest you plan a pricing strategy effective enough to make people try your products. 

So, once you launch a new product in the market, keep the initial price lower than usual maintaining a minimal yet steady profit. Although you may land little to no profit, once the sales gain some momentum, they also gain initial traction by Etsy’s algorithm. You can raise the profit margin later, hold on to your best patrons and keep experiencing the boost you received from the platform. 

Licensing

Although licenses are not mandatory in the case of all sellers, it makes your business appear more professional. Hence we recommend obtaining an EIN number for your business and an LLC. LLC is asset protection and thus not mandatory if you just joined Etsy as a seller. But once you grow your business, LLC becomes increasingly important. So it’s better to keep it ready from the first while you are figuring out how to sell on Etsy.

Finding a niche

Nicheing down is a practice that is celebrated across all e-commerce platforms. Similarly, in Etsy, the more you can niche down, the more attention you gain. It helps you with SEO visibility. Etsy’s search algorithm rewards specificity and the Unique Selling Proposition (USP) is what essentially sets you apart from your competitors.

Community approach

Develop a standard practice to stay active on Etsy teams and other forums for staying on top of the trends, support, and collaboration. 

These advanced strategies will increase your chances of success when implemented while remaining flexible to industry or platform-level changes. 

Challenges and mistakes to avoid while selling on Etsy

• Etsy has a strict no-reselling/drop shipping policy for manufactured goods.
• You can sell if your products come under at least one of these categories: handmade, print-on-demand, vintage item, or digital product.
• Etsy rewards uniqueness. Make sure you disclose it to your customers if you are relying on another member for the production.
• Your business partner should not have a separate business on Etsy.
• Etsy may suspend your shop for tag spamming.
• Always resolve and respond to customer reviews promptly.
• Stay active and update listings on Etsy your inactivity may hurt your shop’s visibility in search results.
• No returns on digital products are allowed; make sure to declare that.
• Absolutely avoid misleading labels.

Final thoughts

There is no better time than now to learn how to sell on Etsy. Turn your talent into your full-time occupation. Especially when platforms like Etsy are thriving harboring artisans from 234 countries and bringing patrons from all over the globe under one roof. 71% of the sellers call their Etsy store an established business, implying how successful Etsy is in helping these creative minds achieve their goals. 

By leveraging Etsy’s in-built features you can grow your business to a great extent without looking beyond or hiring a specialist. While art connoisseurs are here on Etsy to support global or indigenous talent, success comes to businesses that remain consistent.

Additional Readings:

Amazon Competitors Giving the Ecommerce Giant a Run for its Money

Ecommerce Demand Forecasting 101: Everything You Need to Know to Grow Your Business

Boost Ecommerce Sales with ChatGPT Using 20+ Dynamic Prompts

What Are The Latest Ecommerce Trends In That You Can’t-Miss

How fashion ecommerce retailers can reduce online returns

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